Rocket Internet-backed coffee startup bags $15m funding, to hire 2,000 employees

Brazil, Guatemala, or Kenya commonly come to mind whenever coffee drinkers think about where their morning cup of joe was sourced from. Yet most people often overlook Southeast Asia, which is home to two of the world’s largest coffee producers: Vietnam – the biggest in the region – and Indonesia. In fact, Vietnam was also the fourth-largest coffee exporter globally in 2020.

Flash Coffee founder and CEO David Brunier / Photo credit: Flash Coffee

Southeast Asia is not only a top coffee producer, but it’s also the fastest-growing region for coffee consumption and retail sales. That’s one reason why Southeast Asian coffee startups such Sequoia-backed Kopi Kenangan, robotics cafe startup Ratio, and Rocket Internet-backed Flash Coffee are now taking on international competitors such as US giant Starbucks and China’s Luckin Coffee.

Flash Coffee, for instance, offers premium coffee at its yellow-and-pink-themed shops in Singapore, Indonesia, and Thailand at prices more than 50% lower compared to Starbucks.

The Singapore-based coffee chain just landed US$15 million in its series A financing round led by White Star Capital, which has also backed Malaysia-based food delivery company Pop Meals.

Investors including Delivery Hero-backed DX Ventures, Global Founders Capital, and Conny & Co also participated in the round, bringing the total capital raised by Flash Coffee to US$20 million.

Flash Coffee allows customers to order signature drinks like Avo Latte and Lychee Espresso Soda online through its app or to book for delivery through major platforms in each market. The company also uses its barista app to help track store productivity, incentivize store staff, and automate all processes including purchase orders.

The grind continues amid a pandemic

As Covid-19 swept through Southeast Asia early last year, Flash Coffee had to suspend operations at its Jakarta outlet – its first physical shop. Currently, the startup is on track to conquer the region by launching three stores every week, hitting 300 by the end of the year.

It is also building its regional headquarters in Singapore and Indonesia. Flash Coffee is looking to hire over 2,000 new employees over the next year for roles in technology, operations, marketing, and finance, real estate, and interior design, among others.

Photo credit: Flash Coffee

“Our dream is to have a Flash Coffee every 500 meters in all major Asian cities,” founder and CEO David Brunier said in a statement. He previously worked at Foodpanda, serving as the on-demand meal delivery app’s chief marketing officer.

Even as the pandemic took a toll on Flash Coffee’s financial health, Brunier pointed out that the company still emerged as a “winner” because of its product-market fit, which was customized in a cost-efficient manner.

Flash Coffee has kept its “grab and go” feature at the core of its business model to suit a pandemic-driven world. The app allows consumers to pre-order their beverage and pick it up from a store without having to stand in a queue. Its loyalty program rewards customers for ordering from various stores or trying out different varieties of coffee.

The coffee startup aims to cater to young, middle-class consumers in Asia through its branding strategy, which uses bright colors, and its affordable drink, which can go for as low as as 18,000 rupiahs (US$1.2) in Indonesia.

Flash Coffee is also in advanced discussions with industry partners to set up its in-house roasting facility as it strives to further reduce costs and be directly in charge of quality control for the beans used in its beverages.

Correction (April 7, 2021 11:00am SGT): The article earlier incorrectly mentioned that Flash Coffee is priced at as low as 18 rupiah (US$0.0012).