HONG KONG - Luckin Coffee, an up-and-coming coffee chain with ambitions to challenge Starbucks in China, is targeting a valuation of $1.5 billion to $2 billion (R28bn) as it launches a new round of funding, people familiar with the matter told Reuters.
The fundraising comes as Luckin expands at breakneck speed across China. The firm only officially launched in January and yet has already opened over 1 400 cafes in 21 cities under a supercharged growth plan based on cheap delivery and online ordering.
It has financed its expansion with funding from investors including Singapore sovereign wealth fund GIC.
In July, Luckin said it closed a $200 million investment round bringing its valuation to $1 billion. That made it one of the fastest companies in China to reach unicorn status.
In the new round of talks with prospective investors, Luckin plans to raise $200 million to $300 million in fresh equity, said one of the people familiar with the matter, who all declined to be identified as the information was not public.