KUALA LUMPUR (Sept 10): A consortium comprising private equity (PE) firm KV Asia Capital Pte Ltd, Kumpulan Wang Persaraan (KWAP), and Indonesia’s Kapal Api Group has invested RM250 million into ZUS Coffee’s operator to support its global expansion.
This confirms a news article by The Edge Malaysia weekly in July this year, which reported that Zuspresso (M) Sdn Bhd is close to securing RM250 million in PE funding, led by Singapore-based KV Asia, quoting sources.
Zuspresso was also weighing at least two pitches for a billion-ringgit initial public offering (IPO) on Bursa Malaysia, the July report quoted sources as saying.
The newly secured investment will grow ZUS’ coffee business and “support our move into new verticals like FMCG”, or fast-moving consumer goods, said ZUS Coffee founder and chief executive officer Ian Chua in a statement.
The company, which started operations six years ago in 2019, will launch into Singapore and Brunei between September and December this year, adding on to its overseas operations of 50 stores in the Philippines, which first started in 2023.
“ZUS Coffee is currently also in active discussions with potential partners in other international markets and expects to serve more customers across new geographies in 2025,” the statement said.
In Malaysia, ZUS Coffee operates 550 stores as at August 2024. It is “continuing to expand its store portfolio aggressively” in the country, the statement said.
According to the July report by The Edge, it was understood that RM50 million out of the RM250 million investment secured is for new shares in Zuspresso. The fresh capital is to bolster its balance sheet, and support its expansion plans and operational needs.
The remaining RM200 million raised from the PE funds, is for existing shares. This should enable existing shareholders to partially cash in on their stake in the Selangor-based company.
At the time of the July report, the largest shareholders of Zuspresso included The Concierge Sdn Bhd, controlled by Janica Lao, daughter of Filipino billionaire Frank Lao (35.48%); and Chua (21.27%). Janica bought the 35% equity interest in March 2023.
There are 15 other shareholders in Zuspresso, including chief operating officer Venon Tian Jerng Hui (0.49%), head barista Terence Ho You Gio (0.72%), and angel investor Tan Swee Yeong (10.87%).