Beijing-based Luckin Coffee said Monday in an archiving department that it plans to sell shares on the New York Stock Exchange as part of its ambitious expansion plans, and plans to open another 2,500 by the end of this year. In this case, the company will displace Starbucks ( SBUX ) as China's largest coffee chain.
Luckin has not said how much he would like to increase or when his IPO is likely, but the company has previously raised hundreds of millions of dollars from major international investors, including Blackrock ( BKCC ) . After the company's last fundraising in April, its value was approximately $ 2.9 billion.
The rapid rise of Luckin to challenge Starbucks shows that Chinese newcomers are increasingly competing with Western brands in one of the most important consumer markets in the world. Luckin said Monday it had been boosted to over 8.7 billion cups by the huge increase in coffee consumption in the world's second largest economy last year.
While both Starbucks and Luckin serve coffee, the similarities end there largely. Unlike the well-known Starbucks cafes, most Luckin stores are tiny stalls in remote locations where orders for both delivery and pickup are taken online.
. More importantly, Luckin technology has been at the heart of its business from the start. The outlets do not accept cash, instead customers can only pay via the Luckin app, which offers loyalty rewards.
China is Starbucks' second largest market after the United States. With around 3,000 branches across the country, it's still bigger than Luckin. Starbucks plans to more than double that number by the end of 2022.
Luckin is still facing long-term challenges. Filing with the US Securities and Exchange Commission revealed that it lost more than $ 240 million last year. Luckin said it could continue to lose money for the "foreseeable future".