The 220-store coffee chain will use the new investment to scale across Europe, where it currently operates 18 stores across France, Spain and Portugal, alongside a planned entry into the UAE market
The Coffee’s latest funding round valued the coffee chain at $45m | Photo credit: The Coffee
Curitiba-based The Coffee has received a $10m investment from Brazilian equity fund CapSur to accelerate its international expansion in Europe, South America and the Middle East.
Founded in 2018, The Coffee currently operates 200 stores in Brazil, alongside 18 outlets across France, Spain and Portugal. Franchised outlets account for 90% of The Coffee’s total store footprint, which also includes single sites in Colombia, Peru and Chile.
São Paulo-based CapSur, which previously co-led The Coffee’s $7.5m investment round in 2022, said the new funding will enable the small-format coffee chain to enter more European markets, scale across South America and open stores in the UAE.
Approximately 85% of The Coffee’s revenues currently come from its Brazilian operations, where it plans to reach 320 stores by the end of 2024.
However, the business forecasts its outlet growth being driven by international markets, particularly in Europe, and expects its sales from outside of Brazil leading its total revenues within the next five years. The Coffee said there is potential to open 1,500 stores outside of Brazil by 2028.
CapSur’s funding round valued The Coffee at $45m.