The investment signifies a ‘significant vote of confidence’ in Reborn Coffee’s growth strategy, said CEO Jay Kim
A Reborn Coffee outlet in Anaheim, California | Photo credit: Reborn Coffee
Reborn Coffee has secured a new $1m credit facility from DRE Inc. to ‘accelerate company initiatives’, including new products, outlet expansion and e-commerce operations.
The California-based specialty coffee roaster and café chain said the strategic credit facility represents a ‘significant vote of confidence’ in its expansion strategy and will drive year-on-year revenue growth.
Reborn Coffee currently operates 14 outlets across California and is expected to open its first stores in Kansas and Texas this year.
The coffee roaster and café chain is also set to embark on international expansion, with agreements to open stores in South Korea and Malaysia. Reborn Coffee has also mooted Austria and the UAE as potential markets in its international outlet expansion plan.
Founded in 1993, DRE Inc. is an Illinois-based real estate development company. Its founder, Dennis Egidi, joined Reborn Coffee as a Director and Vice Chairman of the Board of Directors in June 2020.
“This investment by DRE is a significant vote of confidence for what our team has been building at Reborn. It is particularly validating as Dennis has seen first-hand our accelerating growth and expansion strategy, new product innovation, and effective operational execution across our retail locations. We expect this capital infusion will extend our cash runway. We thank Dennis and DRE for their support as we continue to focus on sustained operational execution and year-over-year revenue growth,” said Jay Kim, CEO, Reborn.
The new credit facility requires interest-only payments until its 31 May 2025 maturity date.
Reborn Coffee achieved 42% revenue growth in 2022 to reach $3.2m. More recently, the specialty coffee roaster and café chain achieved 50% revenue growth to reach $1.1m in three months ended 31 March 2023, Reborn Coffee’s first quarter to exceed $1m in sales.