Turn Capital’s new fund makes first acquisition with Flash Coffee Thailand deal

Flash Coffee co-founders Sebastian Hannecker (left) and David Brunier / Photo credit: Flash Coffee

Turn Capital, the buy-out turnaround firm founded by 17Live chairman Joseph Phua, has acquired the Thai business of Singapore-based Flash Coffee for an undisclosed amount through its new fund, the Turn Capital Opportunities Fund.

According to Turn Capital, the fund will acquire controlling interest in companies that show potential value and upside. It will make three to five deals, deploying a significant chunk of capital and human resources support in each deal to help the acquired firms grow operationally.

For Flash Coffee specifically, Turn Capital plans to expand the coffee firm’s presence across Thailand by opening more than 100 new stores in the next two years. This would bring the total number of outlets in the country to over 200.

Flash Coffee was founded by David Brunier and Sebastian Hannecker, former executives at Foodpanda and Bain & Company, respectively.

It allows customers to order beverages online through its app or to book for delivery through major platforms. The company also uses its barista app to help track store productivity, incentivize store staff, and automate all processes – including purchase orders.

“The convergence of online and offline is a trend that will define consumer behavior for the next decade,” Kheng Lian Ho, general partner at Turn Capital Opportunities Fund I, told Tech in Asia.

Last month, Flash Coffee filed for a voluntary winding-up in Singapore and said it is shutting down its 11 stores in the city-state out of its over 200 outlets globally. The company said it will focus on its “most promising markets,” adding that some are close to hitting EBITDA profitability.

In its fundraising announcement in May, Flash Coffee also said that all of its stores in Indonesia – which were 93 at the time – were profitable.

Recently, the coffee chain has seen increased competition from players like Kopi Kenangan and Luckin Coffee, which have been expanding across Southeast Asia. Flash Coffee also carried out a round of layoffs last year but later received US$50 million in series B funding.

See also: Flash Coffee defends Singapore exit, says regional biz in good shape