Chinese coffee chain start-up Luckin Coffee has reportedly raised $200m in the latest funding round and increased its valuation to $2.2bn.

Reuters reported that the coffee chain intends to use the funding to compete with the coffee company and coffeehouse chain Starbucks in China.

In a statement, Luckin said that the fundraising round was led by Singapore sovereign wealth fund GIC and China International Capital Corp.

Other investors that participated in the funding round include Joy Capital and Dazheng Capital.

“The coffee chain intends to use the funding to compete with the coffee company and coffeehouse chain Starbucks in China.”

Last month, the news agency also reported that the start-up was in talks with investment banks in reference to an overseas initial public offering, as it aimed at a valuation of $1.5bn to $2bn in a new round of funding.

Luckin, which commenced its operations in January, is a tech-driven coffee chain that accepts orders through an app at its stores.

The company operates more than 1,700 stores, which are located across 21 major cities in China. Its growth plan is based on big discounts, cheap delivery, and online ordering.

In July, Luckin raised $200m from investors, including GIC, bringing the company’s valuation to $1bn. It is also said to be one of the fastest firms in China to obtain a unicorn status.