Zus Coffee vs. giants

IN FOCUS

In today’s newsletter, we look at:

• The listing and expansion goals of Malaysia’s Zus Coffee
• How Temu’s Thailand entry could disrupt Southeast Asia’s ecommerce scene

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Hi there,

In Indonesia, coffee chains from local brands are becoming popular. Queues are long, especially for stores in the capital city, Jakarta.

It seems that coffee is now part of people’s lifestyles, and beverages from these brands have become a daily necessity.

Something similar is happening in Malaysia, where various homegrown brands are competing with those from abroad. One of the most well-known ones is Zus Coffee – it has 500 branches across the country, exceeding US-based Starbucks’ 360 stores.

Zus Coffee’s outsized presence in its home market is one of the reasons why it is primed to go public. If its plan pushes through, the company will be the first local coffee chain to list on the Bursa Malaysia. Moreover, Zus Coffee has been posting back-to-back yearly profits in 2022 and 2023.

In this week’s Big Story, my colleague Emmanuel discusses Zus Coffee’s potential IPO as well as the coffee chain scene in Malaysia. Apart from going public, the company is also setting up shop in other countries including Singapore and Pakistan by the first half of 2025.

Meanwhile, I analyze the impact of Temu’s Thailand entry on the ecommerce sector in Southeast Asia. The Pinduoduo-owned firm is gradually expanding its presence in the region after launching in Malaysia and the Philippines.

— Jofie

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THE BIG STORY

Primed for IPO, Zus Coffee brews international expansion plans

The Malaysian coffee chain is reportedly eyeing a valuation of up to US$336 million.

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THE HOT TAKE

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