Shinsegae VC Signite Invests in Alternative Coffee Startup Wake

Pre-A Investment in Wake, Operator of Alternative Coffee Brand SANS
Alternative Coffee Market Reaches KRW 22 Trillion
Strategic Investment Aligned with 'Wellness Trend'... Synergy Expected Through Shinsegae's Infrastructure

Shinsegae Group's corporate venture capital (CVC) arm, Signite, announced on July 11 that it made a Pre-A investment this month in Wake, a food tech startup that operates the domestic alternative coffee brand "SANS."

SANS is the first alternative coffee brand in Korea to replicate the taste and aroma of coffee without using coffee beans. Instead of beans, which are designated as one of the five most endangered crops, SANS developed an Americano-style alternative coffee by combining 12 ingredients?including jujube seeds, chicory roots, and barley?that can be easily cultivated in greenhouses in any country regardless of climate change. SANS is the only company in the world operating a specialty store dedicated to alternative coffee.

Signite focused on the robust growth of the global alternative coffee market. The company highlighted several factors in its decision to invest: SANS, as a homegrown brand, is rapidly gaining a foothold in Korea's nascent alternative coffee market; SANS possesses product quality and technological capabilities that enable it to compete confidently in the global market; and the brand demonstrates strong growth potential. However, the amount and scale of the investment were not disclosed.

According to the latest report from market research firm Meticulous Research, the global alternative coffee market is expected to reach $16.21 billion (approximately KRW 22.27 trillion) this year. By 2032, the market is projected to grow to $24.05 billion (approximately KRW 33.04 trillion), with an average annual growth rate of 5.8%.

The funds from this investment will be used to expand SANS's offline distribution network, support additional research and development, and finance full-scale entry into overseas markets, including the United States.

Kim Jooyoung, Principal Investment Officer at Signite, stated, "We are focusing on companies that are driving innovation in the market through technology, such as alternative coffee and lab-grown diamonds. We will continue to discover and invest in promising startups both in Korea and abroad, and actively create an environment where large corporations and startups can generate synergy."