Despite losses amounting to nearly RMB 900 million ($130 million), Chinese startup Luckin Coffee plans to continue offering subsidies and discounts to Chinese coffee drinkers, a company spokesperson confirmed to TechNode.
According to a business plan reportedly written for the company’s Series B and obtained by Chinese media outlet QDaily, the Chinese coffee firm operated with a net loss of RMB 857 million for the first nine months of this year.
Luckin expects the number for the entire year to be far higher, the company said in a statement. From its perspective, the huge loss is “in line with the forecast by the management team,” since subsidies play a key role in the company’s plan to seize the Chinese market.
Start your free trial now.
Get instant access to all our premium content, archives, newsletters, and online community.
Monthly Membership
Yearly Membership
What you get
Full access to all premium content and our full archives
Members'-only newsletters
Preferential access and discounts to all TechNode events
Direct access to the TechNode newsroom
Start your free trial now.
Get instant access to all our premium content, archives, newsletters, and online community.