Flash Coffee raises US$50 million in extended Series B round

COFFEE chain Flash Coffee has raised US$50 million in an extended Series B round led by existing investor White Star Capital.

Other existing investors in the funding round include Delivery Hero, Geschwister Oetker and Conny & Co. This Series B round, includes the US$32.8 million raised in June 2022.

The funds will be used to accelerate profitability across the company, as well as fuel expansion across the Asia-Pacific. Flash Coffee aims to focus on technology and product innovation while improving sales performance of existing stores.

“Offering a product that people love and following our ongoing trajectory of topline and profitability improvements, we are confident that we will reach our overarching goal of being profitable on a group level next year,” said David Brunier, founder and chief executive officer of Flash Coffee.

The coffee chain will be expanding deeper into Indonesia, launching in Surabaya in July 2023. Flash Coffee entered Bandung, Indonesia in July 2022 – its first foray outside a capital city – with 11 outlets. It has more than 200 stores in Singapore, Jakarta, Bandung, Surabaya, Bangkok, Hong Kong and Seoul.

“With 100 per cent of our 92 stores in Indonesia being profitable, we have found a solid product market fit and are eager to expand our presence into additional cities in Indonesia to further drive sustainable growth,” said Brunier.

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This funding round comes amid increased competition from other coffee chains, with the entry of Indonesian unicorn Kopi Kenangan into Malaysia with five outlets and plans to enter into Singapore. China’s Luckin Coffee has also set up shop in the city-state, with four outlets selling caffeinated drinks.

Flash Coffee had a round of layoffs in November 2022 between the funding rounds, impacting staff in Singapore and Indonesia.