Luckin Coffee, the new retail model, received 200 million US dollars in round A financing, and the Internet coffee brand war began.

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Luckin Coffee (luckin coffee) under the new retail model is favored by capital again.

Luckin Coffee announced on July 11 that it had received $200m in round A financing, which was attended by Dawei Capital, Happy Capital, GIC (GIC) and Junlian Capital, valuing it at $1 billion, making it the fastest-growing unicorn in China. 36 Krypton exclusively learned the news of Luckin Coffee's round A financing in June.

Qian Zhiya, founder and CEO of Luckin Coffee, said that this round of financing will mainly be used for product research and development, scientific and technological innovation and business development. In the future, we will match product quality, performance-to-price ratio and purchase experience by means of mobile Internet and big data.

It has been more than half a year since Qian Zhiya resigned from the COO seat of Shenzhou excellent car Group to the founding of Luckin Coffee. Luckin Coffee started trial operation in January this year, and by the end of May, Luckin Coffee had opened 525 stores in 13 cities, including Beijing, Shanghai, Guangzhou and Shenzhen.

It expands faster than Starbucks and is in the forefront of Chinese coffee chains in terms of scale. As of May, Starbucks opened more than 3000 stores in China, an average of about 160 a year, according to official Starbucks figures. A Starbucks store opens in China every 15 hours or so.

High-speed expansion means high investment, and the advantage is that it can seize market share in a short time, but whether the industrial chain can keep up, how to do quality control, when the company can make a profit and so on are very realistic problems.

In this regard, Qian Zhiya said to 36 krypton that Lucky will steadily expand its stores on the basis of ensuring the quality of products and services in the future. Ruixing integrates high-quality resources in the industrial chain, and will ensure high-quality and cost-effective coffee through strict staff training, flexible store layout, efficient online transactions, fast logistics and distribution.

On the issue of profit, Qian Zhiya said that there is no profit schedule and is ready for long-term losses. The first cup is free, buy two get one free, buy five get five free and other promotional measures will continue for quite a long time, and do not rule out increasing subsidies.

In addition to Luckin Coffee, under the new retail trend, Internet coffee brands have sprung up to compete for the size of the trillion Chinese coffee market.

According to the London International Coffee Organization, China's coffee consumption in 2015 was about 70 billion yuan, and China's coffee market is expected to reach trillion yuan by 2025.

Other Internet coffee brands such as Lian Coffee, Lai Cup Coffee, small Coffee, Starka Technology, Friendship, etc., have previously received early financing with varying amounts of capital. 36 Krypton has reported that online coffee brand Lian Coffee completed 158 million yuan in B+ round financing in March this year, led by Qiming Venture Capital and followed by Banyan Capital. Prior to this, even Coffee has completed four rounds of financing.