US-headquartered coffee shop chain Starbucks is to begin corporate venturing in China after signing a co-investment deal on Sunday with venture capital firm Sequoia Capital China.
The pact provides Starbucks China with strategic access to local food and retail technology startups through investment opportunities and partnerships. Sequoia China is an offshoot of US-based VC firm Sequoia Capital.
Starbucks runs 4,200 stores across 177 Chinese cities and offers home delivery through a partnership with e-commerce firm Alibaba. It plans to access local startups in order to boost digital innovation in the country, which it described one of its two lead growth markets, along with the US.
The corporate aims to digitise the management of its Chinese outlets while also exploring data-driven optimisation of its inventory and supply chain. Portfolio companies will meanwhile gain access to its retail infrastructure and expertise.
Belinda Wong, chairman and CEO of Starbucks China, said: “China’s vibrant environment is a rich ground for entrepreneurship that has seen the emergence of many local innovators that we hugely admire.
“The partnership enables Starbucks to tap into the most dynamic Chinese technology entrepreneurs in order to delight our customers with meaningful innovations created in China, for China.”