Flash Coffee Raises $32.8 Million to Scale Its Grab-and-Go Coffee Model

This is an English adaptation of a FoodBud historical article originally published on July 12, 2022.

Singapore-based coffee chain Flash Coffee recently completed a US$32.8 million B1 funding round, equivalent to about RMB 220 million. Investors in the round included White Star Capital, Conny & Co and DX Ventures. The financing lifted the company’s valuation to US$175 million, or about RMB 1.18 billion.

White Star Capital had previously led Flash Coffee’s US$15 million Series A round, equivalent to about RMB 100 million.

From Jakarta to Singapore

Flash Coffee was founded in 2020 by David Brunier, former Asia-Pacific CMO of delivery platform Foodpanda, and Sebastian Hannecker, a former Bain & Company analyst.

The company was initially headquartered in Jakarta, Indonesia. After completing its Series A financing, it moved its headquarters to Singapore, while keeping more than 80 technology staff in Jakarta, which continues to serve as a regional technology support hub.

Since launch, Flash Coffee has expanded to more than 250 stores across markets including Indonesia, Singapore, Japan and South Korea. In 2022, the company planned to continue expanding into the Philippines, Malaysia and Vietnam.

Store Economics and Localized Menus

CEO David Brunier said most of the company’s stores had already become profitable.

Flash Coffee localizes its menu by market. Examples cited by Brunier included Flash Yuen Yeung, a coffee-and-tea blend that sold well in Hong Kong, and Mitarashi Latte in Japan, inspired by a traditional Japanese snack.

In Singapore, Flash Coffee’s best-selling product was the latte, followed by lychee soda espresso and Melaka Lattes.

A Tech-Led Grab-and-Go Model

Brunier described technology as Flash Coffee’s core competitive strength. The company uses digital tools to improve the in-store customer experience and iterates its app to better understand consumer demand.

Most Flash Coffee orders came through digital channels, with the mainstream customer base aged 18 to 35.

Pricing examples included:

• Americano: S$2.80, or RMB 13.4
• Latte: S$3.80
• Non-caffeinated drinks such as milk tea: S$2.50

Flash Coffee’s main format was a grab-and-go store model, similar in concept to Luckin Coffee in China. The focus was on small-format stores designed for quick purchase and takeaway, reducing rental costs and single-store investment. The company was open about having drawn lessons from Luckin Coffee’s model.

Note: financing, valuation, profitability and expansion-plan figures are historical as of July 12, 2022.