Chinese domestic media outlet Cailian Press on Tuesday reported that Luckin Coffee is planning a new round of financing, including participants such as Focustar Capital (FSC), an industrial capital investment platform under Five Star Holdings.
FSC responded that while it is a potential participant in the new round of financing, it cannot yet confirm its inclusion.
In January, Luckin sent out the following profit target in an internal email: More than 60% of its self-operated stores will be profitable at the store level by November, and it plans to secure overall profitability in 2021. As of May 31, 2021, it has 3,949 self-operated stores and 1,175 franchises in China, and plans to open between 4,800 and 6,900 chain stores by 2023.
Tech Planet reported that after being embroiled in a high-profile financial fraud scandal, Luckin Coffee began to be profitable in May and June earlier this year, raking in tens of millions of yuan. The coffee chain’s invigorating “Fresh Coconut Latte” has been selling fast at its bricks-and-mortar shops, greatly accelerating the profitability process.
This year, Luckin regained favor in capital markets. In April 2021, it received a strategic investment of $250 million from Centurium Capital and Joy Capital.