Coffee Brand "Saturnbird" Closes Pre-A Round in the Tens of Millions | FreeS Fund Deal News

" Investor Perspective

Huang Hai, Executive Director, FreeS Fund

Email: hai@freesvc.com

China's coffee market has already surpassed 100 billion yuan and continues to grow rapidly. Per capita annual coffee consumption in China sits between 5 and 7 cups — still a significant gap compared to other developed countries. In the current market, instant coffee commands 60% to 70% of share, but it's generally perceived as lacking brand identity and being less than healthy. Looking ahead, its market share will gradually shrink.

Saturnbird cleverly bridges the convenience of instant coffee with the quality of specialty coffee. Users don't need to buy equipment or wait — they can simply drink it. At the same time, the product's texture, taste, and packaging rival specialty coffee. This stems from supply-chain innovation: using freeze-drying technology to maximally preserve coffee's original flavor while maintaining convenience. Saturnbird has essentially perfected convenience. Whereas most instant coffee previously required hot water, Saturnbird achieved cold-water solubility.

As everyone knows, delivery coffee has become a red ocean — competition is fierce and subsidy wars are everywhere. Saturnbird chose a different path, focusing on retail through e-commerce platforms. In this relatively blue ocean, Saturnbird has already become the top-ranked domestic coffee brand on Tmall during Double 11, second only to Nestlé.

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Coffee Brand Saturnbird Closes Eight-Figure Pre-A Round, Becomes Top Domestic Coffee Brand on Double 11 Within Two Months of Launch

Source: 36Kr

Author: Xu Zi

Specialty coffee brand Saturnbird recently closed an eight-figure Pre-A funding round led by FreeS Fund. The proceeds will go toward e-commerce channel expansion and content operations.

Saturnbird's approach extends the drinking occasions for specialty coffee. Through equipment improvements, even coffee novices can brew pour-over with consistent results. Beyond that, the company co-developed LABS (Lossless Aroma Brewing System), which allows specialty coffee to be extracted into crystalline powder — easily soluble in cold or hot water or milk while preserving aroma and flavor. With portability, specialty coffee can now enter homes, offices, and even travel and outdoor scenarios.

Initially, Saturnbird distributed primarily through Taobao, Xiaohongshu, and Xiachufang, building a stable user base. Last summer, its "Cold Brew Instant Coffee" series became an instant hit upon launch, selling over 20,000 boxes — nearly 200,000 cups — in a single month.

As its product line expanded, Saturnbird's Tmall store went live in August, breaking 1 million yuan in sales on day one. By Double 11, it ranked first among domestic coffee brands; by Double 12, it was second across all coffee categories (behind Nestlé). Current monthly GMV is around 5 million yuan, double the figure from our previous coverage.

Founder Wu Jun revealed that Saturnbird will focus on several areas going forward:

• Adjusting SKU structure and further diversifying its coffee portfolio. For the specialty instant series, it will introduce more sizes and flavors beyond the current 1-6 numbering system. Coffee equipment and pour-over series will remain as brand supporting elements.

• E-commerce operations. Increased investment in content and influencer marketing to expand its user base and reach. Compared to July last year, Saturnbird's user demographics have skewed younger — the 25-30 age bracket has grown — though core users remain concentrated in first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen. Wu said he hopes more users will discover Saturnbird, and that refined operations will improve repurchase rates among existing customers.

• Offline stores. Saturnbird already operates a physical location in Changsha, though it functions more as a coffee research lab for product and flavor testing, as well as gathering market feedback on new items like its recently launched nougat. In 2019, Saturnbird plans to open a flagship store in Shanghai, but the format won't be limited to a traditional coffee space — instead, it will incorporate younger, more entertaining, and immersive approaches to brick-and-mortar.

China's coffee consumption remains in its early stages but is growing at an impressive clip (10-15%). Instant coffee still dominates, while freshly ground and specialty coffee hold smaller shares but faster growth rates. Compared to Japan and South Korea's per capita consumption of over 500 cups annually, China's coffee market still has substantial room to grow.

Wu believes that once habits form, coffee repurchase frequency is very high. Saturnbird's mission is to break down the price barrier, offering consumers convenient, quality coffee.

(This article originally appeared on 36Kr. Feel free to share to Moments.)

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