China-Based Luckin Coffee Files U.S. IPO After Raising $150 Million

Starbucks has aspired to become the preferred coffee destination in China for a few years now, originally outlining a plan to open 5,000 cafés by 2021. But it is not the only coffee company pursuing aggressive growth in this market: China-based Luckin Coffee is planning 2,500 stores in 2019 alone, one year after building out a total of 2,000 in 2018. In the latest stage of its expansion, Luckin Coffee filed for an IPO with the U.S. Securities and Exchange Commission (SEC).

The coffee chain intends to list under the symbol “LK” on the Nasdaq, setting a placeholder amount of $100 million to indicate the size of the IPO, according to an SEC filing. The filing reports a 3,883% revenue increase between Q1 2018 and Q1 2019, but with losses more than tripling total revenue over that same period. For the first three months of 2019, the company continued to post a net loss of $85.3 million.

Much of these losses come from the rapid store expansion — Luckin only opened its first café in October 2017 — in addition…