Little Red Book invests in PE-backed Chinese coffee chain

The exact funding size and identities of the other investors were not disclosed. The company has expanded to 350 directly-operated stores in core shopping districts across 30 cities in the past two years, according to a statement posted by CMC Capital, an early investor. In 2021, it had only 10 stores.

M Stand raised a CNY 500m (USD 77m) ) in Series B led by Black Ant Capital and GenBridge Capital in 2021. Gaorong Capital also took part in the round, while CMC Capital and Challenjers Capital re-upped. CMC and Challenjers led a CNY 100m Series A at the beginning of 2021.

M Stand positions itself as "better coffee in a more fashionable social space," reflecting a broader trend among consumer brands of emphasizing the offline experience.

The company has eschewed the traditional standardised 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.

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

M Stand is also known for innovative coffee products. 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.

Coffee features prominently among the emerging consumer brands that have won investor support in China. For example, Qiming Venture Partners recently re-upped in local coffee brand Tasogare.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Expansion
• Consumer
• China
• food & beverage
• BA Capital
• GenBridge Capital
• Gaorong Capital
• CMC Capital
• Growth capital