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.
