Singaporean coffee startup, Flash Coffee, has decided to close all of its outlets in the country. This decision comes following the announcement of the company receiving a Series B funding of approximately $50 million or around IDR 736 billion, led by White Star Capital.

On Tuesday, October 10, the management of Flash Coffee suddenly announced the closure of 11 outlets in Singapore. The company has ceased operations in these outlets while attempting to offer roles to its central office staff in other markets or regional teams, and is making efforts to connect its baristas with opportunities in other coffee networks.

Despite the closure of outlets in Singapore, Flash Coffee still owes salaries to its employees. For the month of September 2023, employees have only received 25% of their salaries, with the remaining 75% yet to be paid. As of now, there is no further explanation regarding when or how the outstanding employee salaries will be settled.

The decision for a mass layoff at the Flash Coffee headquarters in Singapore is an anomaly, given that in May, the company joyfully welcomed a new capital injection of $50 million in Singaporean dollars, approximately IDR 736 billion, from investors. CEO and Co-Founder of Flash Coffee, David Brunier, expressed their confidence in achieving a group-level profit next year.

David also emphasized that this fresh funding will be used to expedite the attainment of group-level profits, expand into various other cities, and promote sustainable growth in the Asia-Pacific region. They are committed to delivering premium quality coffee to consumers in Indonesia, Singapore, Thailand, Hong Kong, and South Korea, as well as developing technology and product innovations to enhance sales performance at existing outlets.

David underscored that Flash Coffee has experienced significant growth over the past two years, with a 23-fold increase in revenue in 2021 and a four-fold increase in 2022. They also achieved over 100% year-on-year EBITDA growth at the group level during the same year. According to him, Flash Coffee is on the right track to attain group-level profits by 2024, with their primary market expected to reach positive EBITDA in the coming months.