Malaysia-based coffee chain ZUS Coffee has raised 250 million Malaysian ringgit (about $57 million) in a private equity round backed by a consortium of investors, according to an announcement.
The round was anchored by Singapore-based PE firm KV Asia Capital Ltd and backed by Malaysian pension fund KWAP, and Kapal Api Group, an Indonesian coffee industry player.
Earlier reports indicated that the coffee chain is raising 50 million Malaysian ringgit in fresh capital from the issuance of new shares while the remaining sum was raised from the PE funds for existing shares.
In March last year, ZUS sold a 35% stake for an undisclosed amount to Philippines billionaire Frank Lao, who owns the country’s Choi Garden Restaurant Group.
ZUS Coffee founder and CEO Ian Chua said the investment will not only grow the company’s business but will also support its move into new verticals like FMCG.
ZUS started its first store in Malaysia at the end of 2019—months before COVID-19 struck the country—growing to some 60 stores in 2021, and then 180 stores in 2022. As of August 2024, it has 550 stores in Malaysia.
In 2019, it launched the ZUS Coffee app that allows users to order their drinks online for delivery or self-pick-up.
ZUS turned profitable, with a net profit of 133,691 Malaysian ringgit, in the financial year ended June 30, 2021. The next year, the company made a profit of 3.8 million ringgit. Its revenues in those years were 15.68 million and 86.91 million respectively.
Last year, ZUS Coffee opened its first store in the Philippines and now operates 50 stores in the country. It is also in active discussions with potential partners in other international markets and expects to serve more customers across new geographies in 2025.
In an interview with DealStreetAsia in 2023, chief operating officer Venon Tian said ZUS was open to raising more funds, including through a private equity round. He also said that ZUS does not dismiss the possibility of having an IPO in the future.
KV Asia Capital, the lead investor in the funding round, closed its second fund at slightly over $200 million last year, even as the firm had set a target of $300 million for the vehicle.
