Malaysia’s tech-enabled coffee chain ZUS Coffee has secured investment from an investor consortium comprising private equity firm KV Asia Capital, pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP), and Indonesian-based fast-moving consumer goods (FMCG) player Kapal Api Group.
ZUS Coffee said in a statement on Tuesday that the strength of this new partnership and investment signals a new chapter and springboard for ZUS Coffee’s growth.
The firm, which operates 50 stores in the Philippines, is looking to be a market leader in the country in the next three years.
The firm opened its first store in the Philippines in 2023 and has seen strong acceptance of its brand and product.
Meanwhile, Singapore and Brunei are the next two markets that the firm will make its debut between September and the end of this year.
The firm is currently also in active discussions with potential partners in other international markets and expects to serve more customers across new geographies in 2025.
Leveraging on its strong brand equity and loyal customer base, ZUS Coffee said it has a focus on being an international brand.
“We’re thrilled to welcome our new partners and we look forward to working together on strengthening our international expansion plans,
“This partnership will not only grow our core coffee business but also support our move into new verticals like FMCG,” said Ian Chua, Founder and Chief Executive Officer of ZUS Coffee.
“With our shared tech-driven approach, we are committed to making specialty coffee accessible, affordable, and exciting,
“Our vision is to establish ZUS Coffee as a globally recognized Malaysian brand, sharing Malaysian’s commitment to quality and community to coffee lovers worldwide,” he added.
ZUS Coffee commenced operations before the COVID-19 pandemic by opening a store in Kuala Lumpur in 2019.
Driven by its mission to provide access to high quality coffee at affordable prices, the brand has since scaled significantly to become the largest coffee chain in Malaysia by store count.
Operated only 18 stores at the end of 2020, the brand has since grown its Malaysian store count by a remarkable 31 times to about 550 as at August 2024.
Today, the brand operates about 600 stores regionally and is continuing to expand its store portfolio aggressively in Malaysia.
ZUS Coffee is constantly finding new and exciting ways to interact with its customers with the introduction of a number of new concepts and products.
Earlier this year, the group ventured into the FMCG space with the launch of its halal canned sparkling coffee, COFFIZZ.
Building on this momentum, the coffee chain continues to introduce new offerings and concepts with the latest exciting new concept, “Coffee Meets Pastry,” where patrons can enjoy high-quality coffee paired with creative pastries in a vibrant and interactive environment.
“We are delighted to come together with our consortium partners – KWAP and Kapal Api Group – to support a great management team to advance a Malaysian brand onto its next stage of growth,
“ZUS Coffee has demonstrated a resilient business model, scale advantages and continued product innovation culture. Given its brand equity and resonance with customers, we believe ZUS Coffee is well positioned to further expand its footprint regionally and globally,” KV Asia Capital’s Partner Jeremy Tan said.
KWAP’s Chief Investment Officer Hazman Hilmi Sallahuddin also stated that they are proud to be a consortium partner alongside a general partner with demonstrable track record, KV Asia Capital and an established strategic conglomerate, Kapal Api Group, to support a Malaysian brand onto its next stage of growth.
“On our home ground, the focus will be on helping ZUS Coffee solidify its presence by expanding its nationwide store network and to continuously contribute to the community through job creation and local initiatives,
“Internationally, we are excited to assist the brand in expanding its footprint into new markets globally, further propelling ZUS Coffee, and Malaysia as a significant player on the world stage,” he added.
Kapal Api Group’s Chief Executive Officer Robin Setyono also said they are thrilled to be part of this consortium and they are fully confident that ZUS Coffee will continue expanding its presence in both existing and new markets.
“In addition to its impressive ability to scale rapidly in its home market, ZUS Coffee’s true strength lies in its agile and driven management team, who are committed to continuous innovation,
“We find their values closely aligned with Kapal Api Group’s commitment to quality and spirit of growing together. ZUS Coffee is relentlessly striving to deliver better products to more consumers in diverse formats, and we are proud to be part of this exciting journey,” he added.