Luckin Coffee completes round A financing valuation of US $200m and US $1 billion Lu Zhengyao is invited to become chairman

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Qian Zhiya explained that Lu Zhengyao, chairman of Luckin Coffee, helped me in terms of strategy and capital.

Luckin Coffee (luckin coffee) recently announced the completion of round A financing of $200m, with a post-investment valuation of $1 billion. Dawei Capital led the investment, while pleasure Capital, GIC (GIC) and Junlian Capital participated in the investment.

In an interview with the media, Luckin Coffee founder and CEO Qian Zhiya revealed that Lu Zhengyao was invited to become the non-executive chairman of the company after this round of financing. Lu Zhengyao is also the chairman and CEO of Shenzhou excellent car.

"Last year, when I came out to start my own business, Mr. Lu was very supportive. He not only invested in us, but also lent me money. He was already our investor." Explaining why Lu Zhengyao was appointed chairman of the company, Qian Zhiya said, "I am not good at capital. President Lu can help us with strategy and capital. The company is now running very fast, so I can focus more on business and operations." Qian Zhiya said that for these reasons, she persuaded Lu Zhengyao to become Luckin Coffee's non-executive chairman, and she also revealed that Luckin Coffee now has a similar stake in Lu Zhengyao.

It is not uncommon for an entrepreneur to become chairman of a company after investing in a start-up. Li Bin, chairman of Yi che, became chairman of the company after investing in mobike bicycles and Didi carpooling, as well as chairman of Lulai Motor.

When asked how much of the previous investment was burned, Qian Zhiya replied bluntly, "more than 1 billion." She said burning 1 billion, not losing 1 billion, Luckin Coffee "burned" the current brand, 660 stores in 13 cities, as well as the supplier system and millions of customers. She also revealed that after this round of financing, coupled with debt financing such as equipment financial leasing and bank credit, the company has more than 2 billion in cash.

Qian Zhiya, the former COO of Shenzhou excellent car Group, was put into trial operation by Luckin Coffee in January 2018. So far, it has completed the layout of 660 stores in 13 major cities, including Beijing, Shanghai, Guangzhou and Shenzhen, and is the second largest chain coffee brand in China. From the product launch to the valuation of 1 billion US dollars, it only took Luckin Coffee more than half a year to become the fastest growing unicorn in China.