Café chain Blank Street is in early-stage discussions to raise more than $100 million in fresh funding as it looks to accelerate expansion, according to the Financial Times.

The café chain, which was valued at around $500 million last year, could reportedly approach a $1 billion valuation in any deal. However, sources said talks remain preliminary and neither the funding size nor valuation has been finalised.

Founded in 2020 by Vinay Menda and Issam Freiha with a small coffee cart in Brooklyn, Blank Street is a fast-growing café chain focused on delivering speciality-grade coffee and fresh, locally sourced food.

Blank Street now operates across multiple US cities as well as London, where it launched in 2022 and has since expanded to more than 40 locations across the UK, including Scotland.

The company reported turnover of nearly £36 million for the 2024 financial year.

The potential funding round would support further growth, including expansion into new cities. The company is also preparing to enter Los Angeles.

The discussions come as newer café concepts gain traction with younger consumers, while established chains face mounting pressure. Starbucks has closed selected UK sites as part of a broader restructuring.

Meanwhile, Coca-Cola has abandoned plans to sell Costa Coffee after failing to secure bids meeting its expectations, highlighting ongoing challenges in the traditional coffee chain segment.

Top image: © Blank Street Coffee