Nowwa Coffee, a Chinese coffee chain, announced that it has completed two rounds of financing, namely, a B round and a B+ round, with a cumulative amount of 200 million yuan ($31.51 million) raised. The funds will be mainly used for product R&D, market expansion and construction of supply chain and IT system.
The B round was led by Jue Capital, with all previous shareholders following the investment, while the B+ round was led by SIG China, with new shareholders Belle International and Peakview Capital following the investment, and all the previous shareholders also followed the investment. Cygnus Equity served as the exclusive financial consultant for the two rounds of financing.
Nowwa Coffee has previously completed three rounds of financing with investment from Jinshajiang Venture Capital, 37Games, GurryShark Capital, Peeli Venture Capital, V Star Capital and some angel investors.
Nowwa Coffee was established in June 2019, aiming at people aged 22-29, providing high-quality freshly ground coffee, tea, baked goods and other products with prices around 15 yuan ($2.36), positioning itself as an affordable boutique coffee brand.
Nowwa Coffee has more than 1,500 stores covering 20 cities in China. In the first three quarters of 2021, the company’s revenue increased by more than 600% year-on-year, and it has grown into the top three new prominent coffee brands selected by Alibaba‘s local life product and Meituan.
In terms of product research, its founder Guo Xingjun believes that coffee itself has a heavy taste, which makes it a bit difficult to innovate new products in this category. Pure coffee is major in the western world, while Chinese coffee consumers who are unwilling to taste “bitterness” still account for the vast majority. American style coffee therefore accounts for less than 10%. It is easier to influence consumers’ taste by making coffee with the modulation technique of new tea, thus expanding the consumer base.
Nowwa Coffee’s special product – “Pony Fruit Coffee” – integrates the flavor of coffee and fruit. The taste of the product becomes richer and more palatable. In addition, with fruit on the promotion pictures, it looks healthy and fancy, which further attracts more consumers.