Luckin Coffee responded quickly to the report of a new round of financing: no comment

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Beijing, 6th (Xinhua)-- Luckin Coffee is planning a new round of financing of $200 million to $300 million, raising the company's valuation to $1.5 billion to $2 billion, Reuters said on Tuesday, citing sources.

Luckin Coffee was founded at the beginning of this year and announced in July that it had completed a round of financing of $200m, with the participation of Dawei Capital, Happy Capital, GIC (GIC) and Junlian Capital. With a post-investment valuation of $1 billion, it has become a unicorn in the new retail coffee field.

This round of financing comes at a time when Luckin Coffee is expanding across China at an alarming rate. The company was not officially established until January, but it has opened more than 1400 cafes in 21 cities under a super-growth plan based on cheap delivery and online ordering.

Its expansion is financed by investors including GIC (GIC). In July, the company announced the completion of a $200m round of financing, valuing the company at $1 billion. This makes it the fastest company in China to achieve "unicorn" status.

Luckin Coffee is in talks with potential investors to raise between $200m and $300m, according to people familiar with the matter. But in the end, the terms of the deal could change and the size of the financing could fall to $100m-$200m, another person said.

Luckin Coffee has begun early discussions with investment banks on an overseas initial public offering (IPO), most likely in Hong Kong or New York, according to two people familiar with the matter.

Today, it is reported that Luckin Coffee is seeking to achieve a valuation of $1.5 billion to $2 billion through a new round of financing. In response, Luckin Coffee responded: no comment. Zhao Yanyan, director of public relations of Luckin Coffee, explicitly responded to reporters that "this information is not accurate". As for the specific financing scale and valuation of this round of financing, she said, "it is not convenient to disclose now."

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