BrownBag Raises KRW 7 Billion in Series A to Revolutionize Tech-Infused Office Coffee Services

BrownBag Raises KRW 7 Billion in Series A to Revolutionize Tech-Infused Office Coffee Services

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Korea based BrownBag, a provider of office coffee subscription services, has secured a Series A investment of KRW 7 billion. Investors in this round include Korea Development Bank, Bass Investment, Wisdom Asset Management Korea, Dasan Ventures, among others.

Founded in 2015, BrownBag leverages order data to create and distribute coffee beans tailored to customers’ preferences. In 2019, it introduced the office coffee subscription service ‘BLISS,’ offering customized beans and coffee machines for office settings. Recognized for its business viability and growth in the office coffee subscription sector in 2021, BrownBag previously received a KRW 3 billion pre-Series A investment from Medici Investment, bringing its total accumulated investment to KRW 10 billion.

The ‘BLISS’ subscription model, combining coffee bean supply and coffee machine rental, achieved over 20 times revenue growth and a 99.8% retention rate within two years of its brand launch. Last May, the service expanded nationwide, catering to over 3,000 clients, including large corporations, startups, government agencies, and major hospitals.

With the newly secured investment, BrownBag aims to strengthen its position as a coffee tech company. The funds will be used for further development of the ‘BLISS’ service and the upcoming launch of the cloud coffee machine ‘AWARE‘ in the first half of this year. ‘AWARE’ is designed to offer convenient freshly ground coffee not only in office environments but also in commercial spaces such as hotels, restaurants, convenience stores, and other service franchises. The machine features an intuitive touchscreen for menu selection, remote management, control, and touchless automatic cleaning.

Bass Investment’s Director, Lee Moo-young, expressed confidence in BrownBag, stating, “BrownBag has successfully expanded its business scope by targeting the office coffee market. Challenging even in coffee machine development, a field untouched by major corporations, they are achieving visible results through endless challenges. We are confident that through continuous challenges, they will leap into a coffee-specialized company with global competitiveness.”

BrownBag CEO, Son Jong-soo, emphasized the slow digital transformation of the domestic coffee market compared to other industries. He mentioned that the taste and quality of domestic coffee beans have become standardized, and the next step is the evolution of next-generation coffee machines, which will become the core technology leading the coffee industry. Son stated that BrownBag aims to transform the traditional coffee industry by becoming a coffee tech company that combines coffee and digital technology.

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