The Singapore-based coffee chain says its outlets across Asia Pacific are becoming ‘solidly profitable’ and has secured significant investment to grow its footprint, with a focus on Indonesia
A Flash Coffee store in the Ciumbuleuit region of Bandung, Indonesia | Photo credit: Flash Coffee
Flash Coffee has raised $50m in Series B funding as it seeks to accelerate a drive towards group-level profitability in 2024.
Founded in January 2020, Flash Coffee currently operates more than 240 stores across Singapore, Indonesia, Thailand, Hong Kong and South Korea.
The coffee chain reported a 23-fold increase in year-on-year revenue in 2021 and a four-fold rise in 2022.
With outlets becoming ‘solidly profitable’ across Asia Pacific, Flash Coffee forecasts its first markets becoming EBITDA positive in the coming months.
The technology-focused coffee chain said the new funding will enable it to improve the sales performance of existing stores and ‘sustainably grow’ its footprint, particularly in Indonesia where it cited a ‘fast-growing middle class’ as rapidly driving coffee consumption.
Flash Coffee opened its first store in Indonesia and said the country is its ‘most mature market’ with 92 outlets. Flash Coffee will open its first store in the port city of Surabaya in July 2023.
The new funding will also enable Flash Coffee to ‘double down’ on technology and product innovation.
“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,” said David Brunier, Founder & CEO of Flash Coffee.
Flash Coffee’s Series B round was led by White Star Capital, and also included investments from Delivery Hero, Geschwister Oetker and Conny & Co.
The Singapore-based coffee chain secured $15m investment in April 2021 which facilitated its market entries into Hong Kong, Taiwan, South Korea and Japan. At the time of the funding, Flash Coffee also cited Malaysia, the Philippines and Vietnam as target markets.