Chinese tea beverage chains HeyTea and Nayuki Tea & Bakery are looking to be listed in Hong Kong next year, respectively aiming to raise $400-500 million, according to a report by The Paper.
While HeyTea declined to comment, Nayuki responded to Chinese media. Although the company claimed “no comment” regarding the current market rumors, it said its focus has been on product development, supply chain upgrading, and promoting the digital process.
HeyTea and Nayuki Tea & Bakery are the absolute unicorns of China’s new-style tea drinks market.
HeyTea was founded in Jiangmen, a city near Guangzhou, in 2012. By offering an innovative tea beverage called Naigai Cha, milk cap tea, it has taken China’s younger generation by storm. It is not rare to see people waiting hours in queues outside of HeyTea stores across the country, just for a cup of 30 yuan ($5.5) tea.
By August 2020, HeyTea had opened over 512 stores in 49 cities domestically and overseas. According to available information on TianYanCha.com, the most recent strategic investment HeyTea received from Hillhouse Capital Group and Coatue Management helped it to be valued at 16 billion yuan in March 2020.
Nayuki Tea & Bakery has also attained visible success starting in 2014. Namely, the first ever unicorn of new-style tea drinks, Nayuki persists in providing soft-Euro boulangerie & artisanal tea in its 410 direct-sale stores in over 60 cities across Asia. Their services and products are wildly popular among Chinese netizens “without being too gimmicky.”