Singapore-based tech-enabled coffee chain Flash Coffee reportedly laid off some of its employees in Singapore and Indonesia.
A Linkedin post by a former employee cited “regional reorganisation and ongoing funding efforts” as the reason for job cuts across markets.
As the company is backed by venture capital from investors in the technology industry, the restructuring may have been caused by pressure to reach profitability quickly as the investment landscape deteriorated following gloomy economic forecasts.
For a relatively young company like Flash Coffee, it can be a challenge to grow quickly, and it is easy to get distracted by constantly looking for investors willing to fund the company.
Flash Coffee has been partnering with well-known brands to ramp up its marketing strategy. This year, the coffee chain has already partnered with Bumble, foodpanda and Ageless Galaxy.
Flash Coffee is backed by Rocket Internet and received US$32.8 million in Series B1 funding in July. It received an additional US$5.13 million in Series B funding last month, according to several media reports. Last April, the company received US$15 million in Series A funding led by White Star Capital. According to the company, the new funding will be for brand expansion into 10 markets in the Asia-Pacific region.
Flash Coffee was launched in 2020 and has opened nearly 250 shops in Indonesia, Singapore and Thailand since its inception, employing a total of 1,400 people. Last year, the company said that most of its shops are already profitable, showing that its business model is successful.
In 2021, the grab-and-go coffee chain opened three new shops per week and aimed to triple that number to 10 openings per week. Flash Coffee previously set a target of opening 300 additional shops in the Asia Pacific by the end of 2021.