China bubble tea chain Naixuecha raises Series C

The investment - which also featured Yunfeng Capital - was worth $100 million and values Naixuecha at nearly $2 billion, Bloomberg reported. PAG declined to comment when contacted by AVCJ.

Naixuecha confirmed the round had taken place but didn't comment on the size or valuation. It plans to use the capital for product research and development, supply chain upgrades, and digitalization. It will also work with tea industry organizations to promote common standards.

Naixuecha made a confidential filing for a US IPO last February, but progress was disrupted by the coronavirus outbreak, Bloomberg added.

Founded in 2015, Shenzhen-headquartered Naixuecha sells bubble tea and baked goods, targeting 20-35 year-olds. It operates more than 500 stores in 70 cities across China, all of which are directly owned, according to a statement by Tiantu Capital. Tiantu led the company's angel and Series A rounds in 2016 and 2018. At the time of Series A, Naixuecha was valued at RMB6 billion ($918 million), according to 36Kr.

The company's principal rival in China's freshly brewed tea market is Heytea, which reportedly recently secured funding from Hillhouse Capital and Coatue Management. HeyTea has not confirmed this.

Other investment activity in the space includes a RMB150 million round last October for fruit tea brand Sweet7. It was led by Shunwei Capital. Sweet7's stand-out product is based on Mango pomelo sago, a Hong Kong invented in 1984 by Lei Garden. While Heytea and Naixuecha started in southern China, Sweet7 has more than 800 shops mainly located in eastern provinces.

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• Topics
• Greater China
• Consumer
• Expansion
• China
• Tiantu Capital
• PAG
• Growth capital