Jakarta, CNBC Indonesia – Flash Coffee closes in Singapore. A total of 11 outlets startups which started from Jakarta, has not been operating in the last few days.

According to Channel News Asia, At 11 closed Flash Coffee outlets in Singapore hung signs stating that employees were on “strike” due to late salaries being paid.

However, Flash Coffee management denies this. “Contrary to the news circulating, our staff in Singapore are not on strike,” a company spokesperson said Channel News Asia. “We stopped operations at 11 outlets and as a result, our baristas did not have to come to work.”

Flash Coffee claims to build a sustainable and profitable business, the company decided to “consolidate and focus on the most promising markets,”

“To support this new focus, we ceased operations in Singapore yesterday, consisting of 11 of our approximately 200 stores worldwide,” said Flash Coffee.

Investment IDR 738 billion

In May, Flash Coffee announced that it had received fresh investment capital worth US$ 50 million (Rp. 738 billion). The Series B funding was led by White Star Capital with participation from Delivery Hero, Geschwister Oetker, and Conny & Co.

The company said the additional capital will be used to expand more broadly in Indonesia, which is said to be Flash Coffee’s most mature market.

Flash Coffee recently expanded their coffee chain to Bandung, the company’s first expansion outside Jakarta. In July 2023, Flash Coffee’s first coffee outlet in Surabaya will begin operating.

Apart from expansion in Indonesia, additional capital will be pumped in to achieve profit at the group level and develop product and technological innovation.

In the last two years, Flash Coffee claims to have recorded exponential growth. In 2021, the company’s revenue increased 23 times compared to the previous year. In 2022, Flash Coffee reports revenue growing 4-fold and EBITDA increasing more than 2-fold.

Flash Coffee targets achieving net profit in 2024 at group level and states that it will post positive EBITDA in one of its markets in the next few months.

“100 percent of our 92 stores in Indonesia have made a profit, we have found a solid product-market fit and are enthusiastic about continuing to increase our presence in other cities in Indonesia,” said Flash Coffee CEO David Brunier in a press release last May. .

[Gambas:Video CNBC]

(dem/dem)