Singapore-based KV Asia Capital is currently raising investment to enable the value-focused coffee chain to develop its domestic and international store network and strengthen its balance sheet, according to local reports
ZUS Coffee currently operates 497 outlets in Malaysia and a further 16 in the Philippines | Photo credit: ZUS Coffee/Facebook
A Singapore-based investment firm is reportedly seeking to raise RM 250m ($53.5m) for Malaysia’s ZUS Coffee to fund further outlet expansion and strengthen its balance sheet.
According to financial news outlet The Edge, KV Asia Capital will raise the investment in two phases – an initial RM 50m ($10.7m) and RM 200m ($42.8m) at a later date.
Founded in 2019, ZUS Coffee has rapidly expanded across Malaysia to reach 497 outlets – overtaking Starbucks to become the second largest branded café chain in the country behind Tealive.
In March 2023, Filipino hospitality group Choi Garden Restaurant Company acquired a 35% stake in ZUS Coffee and supported its launch in the Philippines six months later. The value-focused coffee chain currently operates 16 stores in its only international market to-date.
ZUS Coffee is also currently considering an IPO on the Bursa Malaysia stock exchange,The Edge said quoting sources close to the matter. Ipoh-based Maybank Investment Bank and Kuala Lumpur’s CIMB Investment Bank are among those interested in advising on the IPO, valuing ZUS Coffee between RM 1bn ($214m) to RM 1.5bn (£321m).
In March 2024, KV Asia Capital invested $15m in Taguig-based Wildflour Hospitality Group, which counts Wildflour Restaurant, Little Flour Café and Pink’s Burgers among its eight-brand portfolio.
The private equity firm also has investments in Vietnamese logistics firm Bee Logistics, Indonesian beauty brand Victoria Care, health food supplement company DXN and Malaysian supermarket chain TF Value Mart.