Chinese coffee chain Luckin Coffee has completed its Series A round of financing worth $200 million. The funding lifts the on-demand coffee delivery start-up’s valuation to about $1 billion, according to the company’s statement…Full Article: China Daily July 2018
- In July 2018, Luckin Coffee announced it had raised USD 200 million in its Series A round of financing. Investors included the Government of Singapore Investment Corporation (GIC) and Legend Capital, a venture capital firm that is a subsidiary of China’s Legend Holdings (HKG:3396).
- By early May 2018, Luckin Coffee had 525 stores (located across 13 cities), 231 of which were delivery stores. At the times, a large latte was CNY 24 (USD 3.70) per cup, which was roughly 20% cheaper than those sold in Starbucks.
- Founded in October 2017 (in Beijing) and headquartered Xiamen, Fujian Province, Luckin Coffee (aka Ruixing Coffee, 瑞幸咖啡) is a coffee chain that operates sit-down cafés, carryout only stores, and delivery only stores. By the end of 2017, Luckin Coffee had approximately 300 stores in mainland China. The coffee chain was founded by the chairman and CEO of UCAR Group, a riding sharing app that managed 300,000 cars across 300 cites (as of June 2018). Both UCAR Group and Luckin are headquartered in Siming District, Xiamen.
- In October 2017, the owner of Vingoo Juice, Shanghai Geant Investment, raised CNY 400 million [~USD 56.9 million] in its B round of financing. Investors included Legend Capital, Joy Capital and Yunqi Partners. During the same month, Meituan-Dianping announced it had raised USD 4 billion in financing. Led by Tencent Holdings, investors included Priceline Group, Sequoia Capital, GIC of Singapore, Canada Pension Plan Investment Board, Trustbridge Partners, Tiger Global Management, Coatue Management, and the China-UAE Investment Cooperation Fund. In China, the primary competitor of Meituan-Dianping is Alibaba’s Koubei.
- By the end of 2016, China had approximately 85,000 coffeehouses (16,000 in 2007).
- From 2015 to 2016, according to the Qianzhan Industry Research Institute, China’s coffeehouse industry revenue increased to CNY 19 billion (USD 3 billion), or by 13%.
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