China’s Starbucks Rival Luckin Piles Up Losses Before IPO

Luckin Coffee, China’s fast-growing Starbucks rival, has one thing in common with consumer tech companies going public in the U.S.: It has racked up hefty losses ahead of its planned public listing.

The coffee delivery startup estimates that it lost some $232 million in 2018, its first year of operation, on revenue of $117 million, according to a person with knowledge of the matter. The figures haven’t been reported previously. Those losses aren’t preventing the company from seeking an IPO valuation of $3 billion, this person said. Luckin hopes to go public on the New York Stock Exchange in the third quarter of this year.