Flash Coffee, a coffee chain based in Singapore that incorporates technology into its operations, has recently concluded its Series B funding round. The round, which was primarily spearheaded by White Star Capital, resulted in a total funding of US$50 million after its recent closure. Notably, existing investors such as Delivery Hero, Geschwister Oetker, and Conny & Co also participated in the financing, with some of them choosing to further expand their investment in the company.
The recently acquired funds will be utilised to expedite the company’s objective of attaining profitability at a group level. This will involve the strategic expansion of their presence throughout the Asia Pacific area, encompassing Singapore, Indonesia, Thailand, Hong Kong, and South Korea, with a focus on providing customers with exceptional specialty coffee. The investment will also be directed towards strengthening their technological advancements, fostering innovation in their products, and enhancing the sales performance of their existing stores.
“We are grateful to have the continued backing of our shareholders in this financing round. 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”David Brunier, Founder & CEO of Flash Coffee
Over the past two years, Flash Coffee has seen a 23-fold increase in year-on-year revenue in 2021, followed by another four-fold year-on-year increase in 2022 while achieving over 100 percentage points year-on-year EBITDA. improvement on a group level in the same year.
Flash Coffee has plans to further extend its presence in Indonesia, which is considered its most developed market. The country’s fast-growing middle class is playing a significant role in boosting coffee consumption, making it a crucial market in Southeast Asia. After successfully entering Bandung, its first expansion beyond a capital city, where it established 11 outlets in the metropolitan area, which has over 8.8 million residents, Flash Coffee is set to officially launch in the dynamic city of Surabaya in July 2023.
“We are proud to further strengthen our investment in Flash Coffee, which has demonstrated impressive growth in a very short period of time. We stand by the company’s mission to broaden access to premium coffee for consumers across Asia using the power of technology, and believe that the brand has resonated strongly with its audience. 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”Joe Wei, General Partner of White Star Capital.
White Star Capital is a global multi-stage technology investment platform that invests in exceptional entrepreneurs building ambitious, international businesses. Operating out of London, New York, Paris, Montreal, Toronto, Tokyo, and Singapore. Our global presence, perspective, and people enable us to partner closely with our founders to help them scale internationally.