Shijie Coffee brand with a single store valuation of 100 million! Almost overnight?!

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Recently, a netizen of Xiaohongshu broke the news that more than a dozen offline stores of Extractive Coffee were closed overnight.

When Extractive Coffee closed offline stores on a large scale when it only got nearly 100 million yuan in strategic financing last year? It is understood that many shops, such as Shenzhen Kexing Science Park, have posted a notice to close the shop and removed all the items, leaving only the empty shops.

When dialing, many stores of Extractor Coffee were unanswered, suspended service or turned off. Tianyan inspection shows that Wuxi Xinli Technology Co., Ltd., to which Shijie Coffee belongs, is currently in a state of existence, and its phone has been busy all the time. At present, the Coffee authorities have not yet responded to the matter.

Like three-and-a-half meals and Yongpu, Shijie coffee is also a non-negligible existence in the brand of high-quality instant coffee. Shi Ruoyu, founded by Fan Ruoyu in May 2019, is reported to have worked in many Internet companies. Previously, Fan Ruoyu worked for Internet companies such as Uber and Didi. Not only the founder, but also the team members have a similar background.

In the early days, it started with the WeChat Mini Programs subscription system. to put it simply, after consumers start the subscription service, they will automatically deduct the fee every month like buying members, and the coffee will automatically distribute the products after the deduction. At that time, the company's main product was low-priced boutique hanging-ear coffee.

After joining Tmall in December 2019, on the basis of the traditional hanging-ear coffee, the new product "doughnut hanging-ear coffee" was launched. compared with the traditional hanging-ear coffee, the new product adopts the "half-ball filter hanging" design, and the shape of the doughnut attracts the attention of young consumers. In addition, Shijie Coffee also launched freeze-dried instant coffee, refined coffee liquid and so on.

In 2020, Shijiu Coffee opened its first offline store in Shenzhen. Five new stores were opened within two months after the Spring Festival in 2021, when Extractor Coffee said it expected to have 50 stores by the end of 2021. According to the statistics of Tmall's business staff platform, as of March 2021, the sales volume of Tmall's domestic hanging ear coffee ranked first.

According to public information, Shijie Coffee has received a total of five rounds of financing in the past three years. Including seed round and angel round financing in 2019, tens of millions of yuan of A round and A + round financing were completed in 2020. And in July 2021, Extractive Coffee announced that it had completed a new round of financing of nearly 100 million yuan, which was mainly used to accelerate the expansion of offline stores, brand marketing and continuous research and development of online and offline innovative products.

After getting this financing of nearly 100 million yuan, Extractive Coffee accelerated the pace of opening stores from online to offline. In the second half of 2021, Shijiu Coffee has opened more than ten stores in Shenzhen, Guangzhou and Foshan. It is not clear the number of stores during the peak period, but according to data left over by Coffee Mini Program, there are eight in Shenzhen, three in Guangzhou and one in Foshan, with a total of 12 stores.

It has been reported that many investment institutions have valued Shijie's single store at more than 100 million yuan. Now that the extraction is back online, the valuation will face a sharp decline. If there is no financing in the follow-up, it is difficult to escape the result of the capital chain breaking.

From WeChat Mini Programs's point of view, when extraction coffee line stores are in a state of rest, when extraction's Wechat customer service confirmed that currently in business only Foshan Lingnan Xintiandi store.

In this way, Shijie Coffee seems to have a tendency to return to the new retail track, the main attack line.

Judging from the financing characteristics of coffee brands in recent years, the financing frequency of new brands is higher. Such as Shijie, Sumida and other brands rely on financing, and then open the publicity online, slowly into the battle for the coffee market. Emerging coffee brands often need to grow rapidly, that is, they need a lot of capital investment, and once the subsequent capital flow is cut off, it will collapse quickly.

Time is not the only one who is in trouble. With the change in the direction of investment in coffee tracks, the amount and frequency of investment available to many coffee brands are constantly shrinking. For example, the last offline store of fisheye coffee closed in mid-July this year, fully returning to online sales.

Tims China, which only landed on NASDAQ on September 30 this year, lost 64% of its 100 million capital. Tims China has also shrunk to $497 million from 1.4 billion at the beginning.

From this point of view, Nestle, Starbucks and other established enterprises, although not trendy enough, have accumulated a stable customer base and industry experience, and still have a strong ability to withstand pressure under the pressure of the general environment.

Photo Source: Internet