Coffee Box seeks to regain profitability amidst heightened competition and a cooling capital market.
The company is currently worth $2.2 billion following a $200 million round of funding in December.
If China’s coffee market continues to expand, there may be room for two, possibly even more, big coffee purveyors.
Luckin’s announcement comes amid its escalating battle with Starbuck for China’s caffeinated drink lovers.
The funding is raised at a valuation of $2.9 billion, up from $2.2 billion in December.
Coffee Box began by offering delivery services from coffee chain brands including Starbucks.
Luckin Coffee and Tencent have been partners since Sept. 2018.
A look at the stories and trends of 2018, including gaming restrictions, Tencent’s restructuring, the delivery and coffee wars, WeChat mini programs, and Bullet Messenger.
The celebrity CMO is absent from corporate filings and press conferences of the newly public company whose growth he’s credited with jump-starting.
Freshippo’s logistical capabilities complement Starbucks’ core business to attract consumers who are increasingly turning to delivery.