Foreigners take control of Vietnam’s KAfe Group
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Vietnamese chain KAfe Group has been bought out by foreign investors and its founder ousted.
The unidentified foreign investors have increased the business’ capital from VND16 billion to VND244.825 billion (US$10 million).
KAfe’s founder and CEO, Chi Anh Dao, has stepped down from her role and has not been involved in any business activities of The KAfe since October 25.
In October last year, KAfe Group secured US$5.5 million Cassia Investments-led Series A funding to expand its business throughout Vietnam and the Southeast Asia region. It had also planned to list on the Hong Kong stock exchange.
But the expansion has not been as successful as anticipated and The KAfe outlets in Hanoi and HCMC have not attracted as many customers as budgeted.
KAfe Group, founded in 2013, is described as an urban fusion food company. It currently operates 20 outlets in Hanoi and HCMC under four brands: The KAfe, The KAfe Village, The KAfe Box, and The Burger Box. The group has recently bought a cupcake chain, and plans to expand to tea and juice business.
Before announcing its capital change in June, the KAfe faced financial troubles with reports of suppliers going unpaid.
Questions & Answers
Q.What is the new capitalisation of KAfe Group following the foreign investment?
What is the new capitalisation of KAfe Group following the foreign investment?
Foreign investors have increased KAfe Group's capital from VND16 billion to VND244.825 billion, which equates to US$10 million. This significant capital increase followed the recent buyout of the Vietnamese chain.
Q.Why did the founder, Chi Anh Dao, step down from her role at The KAfe?
Why did the founder, Chi Anh Dao, step down from her role at The KAfe?
Chi Anh Dao stepped down from her role as founder and CEO after foreign investors took control of KAfe Group. She has not been involved in any business activities of The KAfe since October 25, following the change in ownership.
Q.What issues were reported about KAfe Group before its capital change was announced in June?
What issues were reported about KAfe Group before its capital change was announced in June?
Before the capital change was announced in June, KAfe Group was facing financial troubles. There were reports indicating that some of the company's suppliers were going unpaid, suggesting liquidity issues.
Q.How successful was KAfe Group's expansion plan, which was funded last year?
How successful was KAfe Group's expansion plan, which was funded last year?
The expansion funded by a US$5.5 million Series A in October last year was not as successful as anticipated. Outlets in Hanoi and HCMC did not attract as many customers as budgeted, hindering their growth plans.
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