Singapore-based private equity firm Turn Capital has made the first investment from its new fund, acquiring a controlling stake in Flash Coffee’s Thailand business.
The rapid expansion of Flash Coffee’s Thai footprint
Turn aims to rapidly expand Flash Coffee’s Thai footprint, opening over 100 additional stores in the next two years to reach 200 locations.
Founded by Foodpanda and Bain & Company alums, Flash Coffee blends online ordering with physical storefronts. Its barista app boosts store productivity and automation.
The convergence of online and offline
“The convergence of online and offline is a trend that will define consumer behavior for the next decade,” said Turn Capital partner Kheng Lian Ho, explaining the rationale behind the deal.
The acquisition comes after Flash Coffee retreated from Singapore last month to focus on more profitable markets like Indonesia, where all its 93 stores are good.
Stiffer competition regionally
But Flash has faced stiffer competition regionally from rivals like Kopi Kenangan and Luckin Coffee amid its expansion, despite raising $50 million in a Series B round last year.
By acquiring a controlling stake in Flash’s Thailand business, Turn Capital can leverage its operational expertise and capital to help Flash achieve market leadership through rapid location growth.
