BEIJING/SHANGHAI, Dec 12 (Reuters) – Luckin Coffee, an up-and-coming coffee chain with ambitions to challenge Starbucks Corp in China, said on Wednesday it has raised $200 million in its latest funding round, increasing the company’s valuation to $2.2 billion.
The fundraising was led by investors including Singapore sovereign wealth fund GIC and China International Capital Corp Ltd, Luckin said in a statement.
Reuters had reported in November that the coffee chain was targeting a valuation of $1.5 billion to $2 billion in a new round of funding and was in early-stage talks with investment banks about an overseas initial public offering.
The firm’s supercharged growth plan has been built on cheap delivery, online ordering and big discounts, making it a thorn in the side of larger U.S. chain Starbucks.
In July, Luckin raised $200 million from investors including GIC, bringing its valuation to $1 billion. That made it one of the fastest firms in China to reach unicorn status.