China’s Luckin Coffee (NASDAQ: LK) has filed its initial public offering with the U.S. Securities and Exchange Commission on Monday. The coffee chain intends to list on the Nasdaq Stock Exchange under the symbol “LK.” Luckin has also set a placeholder amount of USD 100 Million to indicate the size of its IPO. The filing comes shortly after the Company announced a USD 150 Million in Series B “plus” funding led by Blackrock. Following the funding round, Luckin was valued at approximately USD 2.9 Billion, according to TechCrunch. Luckin has now raised USD 550 Million to date, including a USD 200 Million Series A last year and a USD 200 Million Series B round in December. Despite Luckin’s rapid expansion, the Company revealed in the filings it lost more than USD 240 Million. Luckin projects that it could lose even more in the future. Luckin was founded back in October 2017 and operates in over 1,700 locations across China. The tremendous growth the coffee chain has witnessed is now rivaling Starbucks (NASDAQ: SBUX). Starbucks is still significantly larger than Luckin. Starbucks operates in 30,000 locations across the world. Specifically, in China, Starbucks has approximately 3,600 stores across 150 cities. Luckin plans to double its current store locations by the end of the year, which would potentially overshadow Starbucks. Meanwhile, Starbucks intends to double the number of stores in China over the next five years. While the two companies are both major coffee chains, the two still vary in their business models. Starbucks is primarily known for its cafe-style locations, while Luckin is more of a tiny booth that takes online orders for delivery and pickup. Starbucks has already implemented an online mobile app, however, the Company’s delivery service isn’t fully operational yet. The mobile app is geared more towards customers ordering through the app and then picking up their purchase at the store. Although, Starbucks has already partnered with UberEats to deliver in select cities such as San Francisco, Los Angeles, Chicago, Boston, and New York.
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