Tim Hortons in China has raised new funds from Sequoia Capital China, Tencent Holdings and Eastern Bell Capital, and plans to add more than 200 shops to its network this year.
The Toronto-based coffee chain, which competes with Starbucks Corp and Coca-Cola’s Costa Coffee in China, said the funds would be used for building more outlets as well as expanding its digital infrastructure and brand.
It did not disclose the amount of cash that has been raised.
Tim Hortons has opened more than 150 shops in ten cities since it launched in China two years ago, calling them “profitable”, but analysts have complained of tough price competition and say the firm is not much different from international chains such as Starbucks and Costa.
The firm now plans to add more than 200 locations in 2021 and reach 1,500 stores nationwide in the next few years.
Tencent, the Chinese social media and entertainment giant, first backed the 57-year-old Canadian coffee chain last May.
Together with Tencent, Tim Hortons co-launched an e-sports themed coffee shop in Shanghai in November, as part of a strategic cooperation. Customers can also order their coffees on the Tims mini program on WeChat, which has already gathered nearly three million members.
Starbucks is the most popular coffee brand in China with 4,800 stores in 200 cities. Luckin Coffee is another upcoming competitor, with more than 4,500 shops by the end of 2019, and listed on the Nasdaq the same year.