The Chinese coffee chain has announced that it has inked a $250M investment from Chinese investors Centurium Capital and Joy Capital.
The investment consists of Centurium Capital agreeing to a private placement of $240M in senior convertible preferred shares, and Joy Capital has agreed to a $10M private placement of senior preferred shares. Luckin Coffee has also added that Centrium and Joy could add an additional $150M under certain circumstances.
The company said in a statement: “Luckin Coffee plans to use the proceeds of the investment to facilitate the company’s proposed offshore restructuring and fulfil its obligations under its recently announced settlement with the US Securities and Exchange Commission.”
Luckin Coffee was founded in 2017 and is a technology-driven coffee retail chain which provides coffee and other beverages. As of January last year, the brand managed 4,507 stores and also exceeded the number of Starbucks stores in China.
