Blank Street Seeks 100 Million USD to Fuel Matcha Driven Expansion Towards Billion Dollar Valuation

Blank Street, the fast-growing coffee and matcha chain that has cultivated a devoted following among younger consumers, is in advanced preliminary discussions to raise in excess of 100 million USD in fresh funding. Should the talks produce a formal agreement, the business could be ascribed a valuation in the region of 1 billion USD, according to the Financial Times, which cited unnamed sources familiar with the matter.

The company was founded in 2020 by Vinay Menda and Issam Freiha, two college friends and former venture capital professionals who began their operation as a modest coffee cart in the garden of a Brooklyn diner. From those humble origins, Blank Street has grown to operate nearly 50 outlets across the United States, and a comparable number across the United Kingdom following its London debut in 2022. The chain has since established a presence in Manchester, Birmingham, Edinburgh, Glasgow, Leeds, and Cambridge, signalling a deliberate and sustained push into British urban markets.

The principal catalyst behind the company’s ascent has been the surging consumer appetite for matcha, the powdered green tea that has evolved from a niche wellness product into a mainstream beverage staple, particularly among Gen Z and millennial demographics. Blank Street has positioned itself at the centre of this shift, with flavoured matcha offerings such as Lemon Loaf and Cherry Glaze becoming signature draws. Ignacio Llado, who has led the UK expansion, noted last year that matcha-based drinks account for one in every two beverages sold across the chain’s outlets, a striking metric that underscores the degree to which the product has come to define the brand’s commercial identity.

On the financial front, the company’s UK arm delivered a notably improved performance in 2024. Revenue climbed to £35.8 million from £11.4 million in the prior year, and the business recorded its first profit of £1.3 million, reversing a loss of £4.2 million. The company attributed this trajectory to product innovation, matcha category leadership, growing cultural resonance among younger consumers, and disciplined site selection focused on high-quality real estate.

In terms of prior capital raises, Blank Street completed a Series B round in May 2025, securing 25 million USD and bringing its total funding to 135 million USD. The company counts Left Lane Capital, General Catalyst, and Tiger Global among its investor base, a roster that lends credibility to its growth narrative and positions it well for the current fundraising effort.

The company’s strategic orientation has also been evolving. Bloomberg reported last month that Blank Street is shifting towards larger-format sites, a move that Llado has characterised as prioritising quality over quantity and creating environments where customers can, in his words, “actually speak, connect and slow down.” This pivot reflects a broader maturation of the brand’s proposition beyond the rapid-expansion playbook that characterised its earlier years.

The backdrop against which Blank Street is pursuing this capital raise is one of considerable turbulence among established players in the coffee sector. Starbucks shuttered a number of UK locations last year as part of a global restructuring programme. Pret A Manger wrote off a third of the value attributed to its 2018 acquisition by JAB, the European investment group. Separately, Coca-Cola withdrew plans to divest Costa Coffee, the UK’s largest chain, after private equity bids fell short of expectations. Llado has observed that the coffee sector had long been a “sleeping industry” that is only now beginning to awaken to genuine competitive and creative reinvention. Blank Street, at this juncture, appears well placed to capitalise on that disruption.