Chinese coffee brand Luckin Coffee which projects itself as the rival of Starbucks is set to raised close to $600 million as it gets closer to the IPO launch very soon. The details come as the Chinese firm says it plans to sell 30 million shares for around $15-$16 per share in order to reach close to $500 million. In the new filing, it added that if needed it will increase the shares to 4.5 million to get closer to $600-million mark. Launched in 2017 by Jenny Qian Zhiya, the company has already raised $550 million in funding from the backers that include Joy Capital, CICC, GIC, BlackRock, Decheng Capital, and others.
The IPO filing came after a few days of the firm picking up fresh funds from US-based BlackRock. Notably, BlackRock holds a chunk of stakes in Starbucks as well. Interestingly, Luckin has burned a lot of money in promoting the brand, offering discounts and coupons.
Starbucks has a presence in China for close to two decades. It plans to reach nearly 6,000 stores in the country by 2022. Luckin though has been very aggressive in its approach having reached 2,370 stores in just two years time. It targets to add another 2,500 stores in 2019, in order to take over the store-number from Starbucks.
The firm claims to have more than 17 million customers across 2400 locations it operates from where it says that it has an amazing customer retention rate. Now as the money will pour in, the global expansion could very well be the move of Luckin coffee. So, maybe, world, get ready!
Image Courtesy : pandaily