Black Ant, GenBridge lead Series B for China coffee chain

Gaorong Capital also took part in the round, while CMC Capital and Challenjers Capital re-upped. CMC and Challenjers led a RMB100 million Series A at the beginning of this year.

M Stand positions itself as "better coffee in a more fashionable social space." It has been expanding rapidly, with an average 10 new stores opening each month. The company's geographic footprint has expanded from Shanghai to encompass Hangzhou, Ningbo, Shenzhen, and Guangzhou.

M Stand is known for innovative coffee products. Current top sellers include coconut ice coffee and oatmeal cookie latte. The former comprises coffee infused with a whole coconut, while the latter is served in edible cups made of oatmeal cookies.

The company has eschewed the traditional standardized coffee shop aesthetic, adopting a “one shop, one design” model. This resonates with consumers who often take photos outside the premises. It also helps drive traffic, with M Brand claiming to have become a prized presence in major shopping malls.

The new capital will go towards recruitment, strengthening supply chain systems, upgrading digital capabilities, and geographic expansion. The goal is to reach 100 stores this year.

 

Coffee features prominently among the emerging consumer brands that have won investor support in China. They include Saturnbird, which counts Sequoia Capital China as an investor, and Qiming Venture Partners-backed Tasogare. Both focus on providing quality coffee for consumption at home. M Stand reflects a more recent trend of emphasizing the offline experience.

In this sense, the company also differs from Luckin Coffee, which achieved scale by opening small-scale stores. The business model was predicated on targeting customers who ordered and paid for their coffee by app and then collected it or had it delivered.

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• Topics
• Greater China
• Expansion
• Consumer
• China
• Food
• BA Capital
• GenBridge Capital
• Gaorong Capital
• CMC Capital