Singapore-based coffee chain Flash Coffee has successfully completed its Series B financing round, raising $50 million, led by White Star Capital.
Existing investors, including White Star Capital, Delivery Hero, Geschwister Oetker, and Conny & Co, also participated in the round, with some of them increasing their stake in the company.
The new funds will be used to accelerate Flash Coffee’s mission to achieve group-level profitability. The company aims to grow sustainably across the Asia Pacific region, serving high-quality specialty coffee to customers in Singapore, Indonesia, Thailand, Hong Kong, and South Korea.
The funds will also be utilized for technology and product innovation and further sales performance development of existing stores.
Flash Coffee has experienced significant growth in the past two years, with a 23-fold increase in year-on-year revenue in 2021 and another four-fold year-on-year increase in 2022.
The company has achieved more than 100 percentage points year-on-year EBITDA improvement on a group level in the same year, and its stores are solidly profitable across the region. Flash Coffee is on track to reach group-level profitability in 2024, with the first markets set to become EBITDA positive in the coming months.
The company will continue expanding deeper into its most mature market, Indonesia, where the fast-growing middle class is driving coffee consumption in Southeast Asia’s most populous country. Following its successful entry into Bandung, with 11 outlets across the metropolitan area of over 8.8 million inhabitants, Flash Coffee will officially launch in Surabaya in July 2023.
David Brunier, Founder & CEO of Flash Coffee, said, “With 100% 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. 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.”
Joe Wei, General Partner of White Star Capital, said, “Flash Coffee is well-positioned to become a leading coffee chain in the region, and we look forward to continuing working closely with the team to support their continued growth and progress towards profitability.”
Flash Coffee, which launched in 2020, operates over 200 stores in five markets across the Asia Pacific region. Customers can order and pay online through the Flash Coffee app, pick up orders from one of the brand’s iconic yellow storefronts, or order for delivery through the app or major delivery platforms in each market. – BusinessNewsAsia.com