The Malaysian coffee chain currently operates over 600 stores across its home market and the Philippines, with debuts in Singapore and Brunei planned before the end of 2024.
Tech-enabled Malaysian coffee chain ZUS Coffee has raised RM 250m ($57.5m) which will act as a ‘springboard’ for further domestic and international outlet growth.
Selangor-based ZUS Coffee opened its first store in Kuala Lumpur in 2019 and now operates 554 outlets in Malaysia and a further 50 across the Philippines – currently its sole international market.
However, the coffee chain is set to launch in Singapore in September 2024 and open its first store in neighbouring Brunei before the end of the year. ZUS Coffee is also currently in ‘active discussions’ with potential partners to launch in further international markets in 2025.
Singapore-based private equity firm KV Asia Capital led the investment round, with Malaysian pension fund company Kumpulan Wang Persaraan and Indonesian FMCG business Kapal Api Group also participating.
The involvement of Kapal Api Group could see ZUS Coffee take further steps into the FMCG market following the launch of its halal canned sparkling coffee, COFFIZZ, in January 2024.
“We’re thrilled to welcome our new partners and we look forward to working together on strengthening our international expansion plans. This partnership will not only grow our core coffee business but also support our move into new verticals like FMCG. With our shared tech-driven approach, we are committed to making specialty coffee accessible, affordable, and exciting,” said Ian Chua, Founder and CEO, ZUS Coffee.
“We are delighted to come together with our consortium partners – KWAP and Kapal Api Group – to support a great management team to advance a Malaysian brand onto its next stage of growth. ZUS Coffee has demonstrated a resilient business model, scale advantages and continued product innovation culture. Given its brand equity and resonance with customers, we believe ZUS Coffee is well positioned to further expand its footprint regionally and globally,” added Jeremy Tan, Partner, KV Asia Capital.
Several branded coffee chains across Southeast Asia have courted investment this year as they seek to consolidate their domestic presence and enter new markets in the region.
On-the-go coffee businesses Koppiku and Jago Coffee raised $2.5m and $6m in March and April 2024 respectively, while Shanghai-based Tims China received $50m in new backing from parent company Restaurant Brands International (RBI) and New York-based private equity firm Cartesian Capital in July 2024.
The following month, Vietnamese specialty coffee roaster Every Half Coffee Roasters received new investment to expand its eight-store footprint and improve its supply chain, while Chinese coffee chain Nowwa Coffee completed a B++ round funding round worth ‘hundreds of millions of yuan’ in September 2024.
Source: World Coffee Portal
