(Yicai Global) July 23 -- Chinese coffee chain M Stand has raised more than CNY500 million (USD77.3 million) in its Series B financing round, led by BA Capital and Bridge Capital.

Existing investor CMC Capital also participated in the fundraising, PEdaily reported today, adding that M Stand’s market value has now reached CNY4 billion (USD618.5 million).

The proceeds will be used to recruit talent, improve the supply chain system and digital platform, and open new stores nationwide. By the end of the year, M Stand will reach 100 coffee bars, beginning operations in the cities of Beijing, Suzhou, Nanjing, Wuhan and Chengdu.

Founded in 2017, the Shanghai-based firm wrapped up another financing round earlier this year, attracting CNY100 million (USD15.5 million), which was used to expand its business to Hangzhou, Ningbo, Shenzhen and Guangzhou.

Chinese coffee chain brands such as M Stand and Manner Coffee have been rising rapidly to challenge Starbucks’ market dominance in China after Luckin Coffee delisted from the Nasdaq following a financial scandal.

Manner Coffee has completed three rounds of financing since December, with investors including Singaporean sovereign wealth fund Temasek Holdings and Meituan’s venture capital arm Longzhu Capital. It had a total of 150 stores as of May.

Editor: Futura Costaglione