Fabheads Raises USD 10 Mn Series A Led by Accel to Revolutionise Composite Fiber Manufacturing
The funds will primarily be used to scale up the company's manufacturing capacity, while also expanding its leadership team and strengthening its client-facing engineering and R&D divisions.
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Fabheads, a Chennai-based deeptech startup, has raised USD 10 million in a Series A funding round led by Accel, with participation from Trifecta Capital.
The funds will be deployed to significantly expand Fabheads' manufacturing capacity, strengthen its leadership team, and boost its engineering and R&D capabilities.
This round brings the total funding raised by the company to USD 13 million.
The company, founded in 2015 by former ISRO engineers Dhinesh Kanagaraj and Abhijeet Rathore, specialises in automating the manufacturing of continuous fiber composites—a process traditionally known for being slow, labor-intensive, and wasteful.
According to the company statements, Fabheads is currently the only Indian company, and one of only seven globally, to have successfully automated this complex process using proprietary robotic systems.
"Having experienced the limitations of manual composite manufacturing firsthand during our time at ISRO, we knew an innovative disruption was necessary — not incremental," said Dhinesh Kanagaraj, Co-founder and CEO of Fabheads. "This funding enables us to take a major step towards making composites accessible for aerospace, mobility, clean energy, and more."
Fabheads' core offering includes a patented automated fiber placement system that can reduce manufacturing costs by up to 50%, material wastage by 20%, and accelerate production cycles by 30%. Their technology addresses long-standing inefficiencies in composite fiber production, particularly for high-performance applications in aerospace and mobility.
With backgrounds in aerospace and mechanical engineering from IIT-Madras and IIT-Delhi respectively, the founders bring rich domain expertise, having worked on GSLV-Mk3 launch vehicles and satellite structures at ISRO.
Accel Partner Prayank Swaroop added, "Fabheads has built proprietary technology that rivals the best globally in a domain with few serious players. They are addressing a critical bottleneck in advanced manufacturing."
Fabheads plans to establish a new, larger manufacturing facility in Bengaluru to cater to the growing demand from India's aerospace sector and explore global markets. With this funding, Fabheads is poised to lead India's push into high-performance, automated composite manufacturing on the world stage.
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KEY OPERATING DATA Tims only For the three months ended or as of （Exclude the discontinued business) Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2024 2024 2024 2024 2025 Total stores 906 907 946 1,022 1,024 Company owned and operated stores 604 574 564 576 569 Franchised stores 302 333 382 446 455 Same-store sales growth for system-wide stores -13.6% -14.6% -21.7% -13.3% -7.8% Same-store sales growth for company owned and operated stores -11.7% -13.8% -20.7% -12.3% -6.5% Registered loyalty club members (in thousands) 20,009 21,403 22,815 24,045 25,150 Company owned and operated store contribution (Renminbi in thousands) 2,289 32,429 39,922 12,973 17,154 Company owned and operated store contribution margin 0.8% 10.1% 13.3% 4.8% 6.7% KEY DEFINITIONS Same-store sales growth. The percentage change in the sales of stores that have been operating for 12 months or longer during a certain period compared to the same period from the prior year. The same-store sales growth for any period of more than a month equals to the arithmetic average of the same-store sales growth of each month covered in the period. If a store was closed for seven days or more during any given month, its sales during that month and the same month in the comparison period are excluded for purposes of measuring same-store sales growth. Net new store openings. The gross number of new stores opened during the period minus the number of stores permanently closed during the period. System sales. Gross merchandise value of sales generated from both company owned and operated stores and franchised stores. Company owned and operated store contribution (previously reported as adjusted store EBITDA). Calculated as fully burdened gross profit of company owned and operated stores excluding depreciation and amortization. Company owned and operated store contribution margin (previously reported as adjusted store EBITDA margin). Calculated as company owned and operated store contribution as a percentage of revenues from company owned and operated stores. Adjusted general and administrative expenses. Calculated as general and administrative expenses excluding share-based compensation expenses, expenses related to the issuance of certain ordinary shares to CF Principal Investments LLC in November 2022 (the 'Commitment Shares'), offering costs related to the ESA (the 'ESA Offering Costs'), expenses related to 200,000 of our ordinary shares that may be purchased from our controlling shareholder by a holder of our convertible notes at its option pursuant to the terms of an Option Agreement dated September 28, 2022 (the 'Option Shares'), and professional fees related to warrant exchange and other financing programs. Adjusted corporate EBITDA. Calculated as operating loss for continuing operations excluding certain non-cash expenses consisting of depreciation and amortization, share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, and professional fees related to warrant exchange and other financing programs. Adjusted corporate EBITDA margin. Calculated as adjusted corporate EBITDA as a percentage of total revenues. Adjusted net loss. Calculated as net loss for continuing operations excluding share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, professional fees related to warrant exchange and other financing programs, changes in fair value of convertible notes, changes in fair value of warrant liabilities, changes in fair value of ESA derivative liabilities, loss of the debt extinguishment and gain on disposal of Popeyes business. Adjusted net loss margin. Calculated as adjusted net loss as a percentage of total revenues. Adjusted basic and diluted net loss per ordinary share. Calculated as adjusted net loss attributable to the Company's ordinary shareholders divided by weighted-average number of basic and diluted ordinary shares. RECENT BUSINESS DEVELOPMENTS On May 20, 2025, Tims China launched its new Loaded Power Bowls nationwide. The new offering is the latest addition to Tims China's Light & Fit Lunch Box lineup, following the popular Hot Baked Bagel Sandwiches and Energizing Lunch Wraps, further expanding the brand's innovative and healthy lunchtime options. Tims China's new Loaded Power Bowls come in a standard '2 + 8 + 8' configuration, featuring 18 carefully selected ingredients in every bowl. The '2' stands for two portions of high-quality protein, while the two '8s' represent eight wholesome grains and eight colorful vegetables – creating a nutrient-rich meal designed to meet the needs of busy professionals and fitness enthusiasts alike. On May 21, 2025, Tims China was included in the 2025 China Restaurant Franchise Brand Top 100 list by the China Chain-Store & Franchise Association. 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The Company defines (i) company owned and operated store contribution as fully burdened gross profit of company owned and operated stores excluding depreciation and amortization; (ii) company owned and operated store contribution margin as company owned and operated store contribution as a percentage of revenues from company owned and operated stores; (iii) adjusted general and administrative expenses as general and administrative expenses excluding share-based compensation expenses, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, and professional fees related to warrant exchange and other financing programs; (iv) adjusted corporate EBITDA as operating loss for continuing operations excluding certain non-cash expenses consisting of depreciation and amortization, share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, and professional fees related to warrant exchange and other financing programs; (v) adjusted corporate EBITDA margin as adjusted corporate EBITDA as a percentage of total revenues; (vi) adjusted net loss as net loss for continuing operations excluding share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, professional fees related to warrant exchange and other financing programs, changes in fair value of convertible notes, changes in fair value of warrant liabilities, changes in fair value of ESA derivative liabilities, loss of the debt extinguishment and gain on disposal of Popeyes business; (vii) adjusted net loss margin as adjusted net loss as a percentage of total revenues; and (viii) adjusted basic and diluted net loss per ordinary share as adjusted net loss for continuing operations attributable to the Company's ordinary shareholders divided by weighted-average number of basic and diluted ordinary share. The Company believes company owned and operated store contribution, company owned and operated store contribution margin, adjusted general and administrative expenses, adjusted corporate EBITDA, adjusted corporate EBITDA margin, adjusted net loss, adjusted net loss margin, and adjusted basic and diluted net loss per ordinary share enhance investors' overall understanding of its financial performance and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. As these non-GAAP financial measures have limitations as analytical tools and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company's performance. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, 'Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures.' The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure. EXCHANGE RATE INFORMATION This earnings release contains translations of certain RMB amounts into U.S. dollars ('USD') at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2567 to USD1.00, the exchange rate in effect on March 31, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any rate or at all. CONFERENCE CALL The Company will hold a conference call today, on Tuesday, June 24, 2025, at 8:00 am Eastern Time (on Tuesday, June 24, 2025, at 8:00 pm Beijing Time) to discuss the financial results. Participants are strongly encouraged to pre-register for the conference call, by using the weblink provided may also view the live webcast by registering through below weblink:The webcast features a 'Submit Your Question' tab at the top, where you will have the opportunity to submit your questions before and during the call. A live and archived webcast of the conference call will also be available at the Company's Investor Relations website at under 'Events and Presentations'. FORWARD-LOOKING STATEMENTS Certain statements in this earnings release may be considered forward-looking statements within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995, such as the Company's ability to further grow its business and store network, optimize its cost structure, improve its operational efficiency, and achieve profitable growth. Forward-looking statements are statements that are not historical facts and generally relate to future events or the Company's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as 'believe,' 'may,' 'will,' 'potentially,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'could,' 'would,' 'project,' 'target,' 'plan,' 'expect,' or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including, but not limited to, general economic conditions and other risks, uncertainties and factors set forth in the sections entitled 'Risk Factors' and 'Cautionary Statement Regarding Forward-Looking Statements' in the Company's Annual Report on Form 20-F, and other filings it makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Except as required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based. ABOUT TH INTERNATIONAL LIMITED TH International Limited (Nasdaq: THCH) ('Tims China') is the parent company of the exclusive master franchisees of Tim Hortons coffee shops in mainland China, Hong Kong and Macau. Tims China was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a subsidiary of Restaurant Brands International (TSX: QSR) (NYSE: QSR). The Company's philosophy is rooted in world-class execution and data-driven decision making and centered around true local relevance, continuous innovation, genuine community, and absolute convenience. For more information, please visit INVESTOR AND MEDIA CONTACTS Investor Relations Gemma BakxIR@ or Public and Media Relations Patty TH INTERNATIONAL LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$, except for number of shares) As of December 31,2024 March 31,2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 152,368 183,953 25,350 Restricted Cash 31,869 27,483 3,787 Amount due from related parties 5,858 5,627 775 Accounts receivable, net 30,526 28,539 3,933 Inventories 37,578 34,315 4,729 Prepaid expenses and other current assets 158,882 153,885 21,205 Total current assets 417,081 433,802 59,779 Non-current assets: Property and equipment, net 502,159 460,529 63,463 Intangible assets, net 97,019 92,028 12,682 Operating lease right-of-use assets 493,308 450,111 62,027 Other non-current assets 53,967 52,439 7,226 Assets held-for-sale - 957 132 Total non-current assets 1,146,453 1,056,064 145,530 Total assets 1,563,534 1,489,866 205,309 LIABILITIES AND SHAREHOLDERS'EQUITY Current liabilities: Bank borrowings, current 381,263 425,482 58,633 Accounts payable 223,838 223,193 30,757 Contract liabilities 39,678 42,737 5,889 Amount due to related parties 48,117 60,874 8,389 Convertible notes, at fair value 473,716 484,529 66,770 Operating lease liabilities 178,115 185,676 25,587 Other current liabilities 191,205 180,848 24,921 Total current liabilities 1,535,932 1,603,339 220,946 Non-current liabilities: Convertible notes, at fair value 464,847 422,796 58,263 Contract liabilities 8,022 7,573 1,044 Operating lease liabilities 380,075 337,816 46,552 Other non-current liabilities 7,673 7,645 1,053 Total non-current liabilities 860,617 775,830 106,912 Total liabilities 2,396,549 2,379,169 327,858 Shareholders' equity: Ordinary shares 10 10 1 Additional paid-in capital 1,818,421 1,819,827 250,779 Accumulated losses (2,668,505 ) (2,726,526 ) (375,725 ) Accumulated other comprehensive income 9,185 10,432 1,438 Treasury shares - - - Total deficit attributable to shareholders of the Company (840,889 ) (896,257 ) (123,507 ) Non-controlling interests 7,874 6,954 958 Total shareholders' deficit (833,015 ) (889,303 ) (122,549 ) Commitments and Contingencies - - - Total liabilities and shareholders' deficit 1,563,534 1,489,866 205,309 TH INTERNATIONAL LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Amounts in thousands of RMB and US$, except for per share data) For the three months ended March 31, 2024 2025 RMB RMB US$ Revenues: Company owned and operated stores 296,375 254,759 35,106 Other revenues 35,769 45,983 6,337 Total revenues 332,144 300,742 41,443 Costs and expenses, net: Company owned and operated stores Food and packaging 102,709 77,472 10,676 Rental and property management fee 64,608 56,295 7,758 Payroll and employee benefits 65,179 50,020 6,893 Delivery costs 27,534 27,041 3,726 Other operating expenses 24,217 18,018 2,483 Store depreciation and amortization 33,227 28,358 3,908 Company owned and operated store costs and expenses 317,474 257,204 35,444 Costs of other revenues 25,024 31,526 4,344 Marketing expenses 19,761 17,429 2,402 General and administrative expenses 54,467 51,810 7,138 Franchise and royalty expenses 13,208 13,896 1,915 Other operating costs and expenses 4,178 1,115 154 Loss on disposal of property and equipment 2,004 2,733 377 Impairment losses of long-lived assets 18,965 11,618 1,601 Other income 1,675 1,286 177 Total costs and expenses, net 453,406 386,045 53,198 Operating loss (121,262 ) (85,303 ) (11,755 ) Interest income 989 100 14 Interest expenses (5,585 ) (3,576 ) (493 ) Foreign currency transaction loss 3,950 380 53 Changes in fair value of Deferred Contingent consideration (2,130 ) - - Changes in fair value of convertible notes (10,651 ) 29,458 4,059 Loss from continuing operations before income taxes (134,689 ) (58,941 ) (8,122 ) Income tax expenses - - - Net loss from continuing operations (134,689 ) (58,941 ) (8,122 ) Discontinued operations： Income/(loss) from discontinued operations before income taxes (8,139 ) - - Income tax expenses - - - Net income/(loss) from discontinued operations (8,139 ) - - Net loss (142,828 ) (58,941 ) (8,122 ) Less: Net (income) loss attributable to non-controlling interests 1,217 (920 ) (127 ) Net Loss attributable to shareholders of the Company -from continuing operations (135,906 ) (58,021 ) (7,995 ) -from discontinued operations (8,139 ) - - Basic and diluted loss per Ordinary Share (4.48 ) (1.78 ) (0.25 ) Net loss (142,828 ) (58,941 ) (8,122 ) Other comprehensive income (loss) Fair value changes of convertible notes due to instrument-specific credit risk, net of nil income taxes (3,550 ) 430 59 Foreign currency translation adjustment, net of nil income taxes (3,033 ) 817 112 Total comprehensive loss (149,411 ) (57,694 ) (7,951 ) Less: Comprehensive loss attributable to non- controlling interests 1,217 (920 ) (127 ) Comprehensive loss attributable to shareholders of the Company (150,628 ) (56,774 ) (7,824 ) TH INTERNATIONAL LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) For the three months ended March 31, 2024 2025 RMB RMB US$ Net cash used in operating activities (26,746 ) (219 ) (30 ) Net cash used in investing activities (7,264 ) (16,658 ) (2,296 ) Net cash provided by financing activities 25,975 44,213 6,093 Effect of foreign currency exchange rate changes on cash 1,338 (137 ) (19 ) Net increase/(decrease) in cash (6,697 ) 27,199 3,748 Cash at beginning of the period 203,587 184,237 25,389 Cash and cash equivalents and restricted cash, at end of year 196,890 211,436 29,137 Less: Cash and restricted cash of discontinued operations at end of year (738 ) - - Cash and Restricted cash at end of the period 196,152 211,436 29,137 TH INTERNATIONAL LIMITED AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES (Unaudited, amounts in thousands of RMB and US$, except for number of shares and per share data) A. Company owned and operated store contribution For the three months ended March 31, 2024 2025 RMB RMB US$ Revenues - company owned and operated stores 296,375 254,759 35,107 Food and packaging costs - company owned and operated stores (102,709 ) (77,472 ) (10,676 ) Rental expenses - company owned and operated stores (64,608 ) (56,295 ) (7,758 ) Payroll and employee benefits - company owned and operated stores (65,179 ) (50,020 ) (6,893 ) Delivery costs - company owned and operated stores (27,534 ) (27,041 ) (3,726 ) Other operating expenses - company owned and operated stores (24,217 ) (18,018 ) (2,483 ) Store depreciation and amortization (33,227 ) (28,358 ) (3,908 ) Franchise and royalty expenses - company owned and operated stores (9,839 ) (8,759 ) (1,207 ) Fully-burdened gross loss - company owned and operated stores (30,938 ) (11,204 ) (1,544 ) Store depreciation and amortization 33,227 28,358 3,908 Company owned and operated store contribution 2,289 17,154 2,364 Company owned and operated store contribution margin 0.8 % 6.7 % 6.7 % B. Adjusted general and administrative expenses For the three months ended March 31, 2024 2025 RMB RMB US$ General and administrative expenses from continuing operations (54,467 ) (51,810 ) (7,140 ) Adjusted for: Share-based compensation expenses 1,014 1,076 148 Professional fees related to financing programs - 1,007 139 Impairment losses of rental deposits 2,457 2,561 353 Adjusted General and administrative expenses (50,996 ) (47,166 ) (6,500 ) Adjusted General and administrative expenses as a % of total revenue 15.4 % 15.7 % 15.7 % C. Adjusted corporate EBITDA and adjusted corporate EBITDA margin For the three months ended March 31, 2024 2025 RMB RMB US$ Operating loss from continuing operations (121,262 ) (85,303 ) (11,754 ) Adjusted for: Depreciation and amortization 42,225 37,013 5,101 Share-based compensation expenses 1,014 1,076 148 Impairment losses of rental deposits 2,457 2,561 353 One-off expense of store closure 2,265 - - Professional fees related to financing programs 1,007 139 Impairment losses of long-lived assets 18,965 11,618 1,601 Loss on disposal of property and equipment 2,004 2,733 377 Adjusted Corporate EBITDA (52,332 ) (29,295 ) (4,035 ) Adjusted Corporate EBITDA Margin -15.8 % -9.7 % -9.7 % D. Adjusted net loss and adjusted net loss margin For the three months ended March 31, 2024 2025 RMB RMB US$ Net loss from continuing operations (134,689 ) (58,941 ) (8,122 ) Adjusted for: Share-based compensation expenses 1,014 1,076 148 Professional fees related to financing programs - 1,007 139 Impairment losses of long-lived assets 18,965 11,618 1,601 Impairment losses of rental deposits 2,457 2,561 353 One-off expense of store closure 2,265 - - Loss on disposal of property and equipment 2,004 2,733 377 Changes in fair value of Deferred Contingent consideration 2,130 - - Changes in fair value of convertible notes 10,651 (29,458 ) (4,059 ) Adjusted Net loss (95,203 ) (69,404 ) (9,563 ) Adjusted Net loss Margin -28.7 % -23.1 % -23.1 % E. Adjusted basic and diluted net loss per Ordinary Share For the three months ended March 31, 2024 2025 RMB RMB US$ Net loss from continuing operations to shareholders of the Company (135,906 ) (58,021 ) (7,996 ) Adjusted for: Share-based compensation expenses 1,014 1,076 148 Professional fees related to financing programs - 1,007 139 Impairment losses of long-lived assets 18,965 11,618 1,601 Impairment losses of rental deposits 2,457 2,561 353 One-off expense of store closure 2,265 - - Loss on disposal of property and equipment 2,004 2,733 377 Changes in fair value of Deferred Contingent consideration 2,130 - - Changes in fair value of convertible notes 10,651 (29,458 ) (4,059 ) Adjusted Net loss attributable to shareholders of the Company (96,420 ) (68,484 ) (9,437 ) Weighted average shares outstanding used in calculating basic and diluted loss per share 32,126,774 32,540,189 32,540,189 Adjusted basic and diluted net loss per Ordinary Share (3.00 ) (2.10 ) (0.29 ) _________________________ 1 System sales is calculated as the gross merchandise value of sales generated from both company owned and operated stores and franchised stores.2 Company owned and operated store contribution, is calculated as fully burdened gross profit4 of company owned and operated stores excluding depreciation & amortization. 3 Company owned and operated store contribution margin, is calculated as company owned and operated store contribution as a percentage of revenues from company owned and operated stores.4 Fully burdened gross profit of company owned and operated stores, the most directly comparable GAAP measure to company owned and operated store contribution, was a loss of RMB11.2 million (USD1.5 million) for the three months ended March 31, 2025, compared to a loss of RMB30.9 million in the same quarter of 2024.
