Recently, rumors that Heytea plans to go public in Hong Kong in 2021 have resurfaced, drawing widespread market attention. In response, Heytea founder Neo Nie made a clear statement on WeChat Moments: there is no listing plan this year. As a leading brand in the new tea beverage sector, Heytea has grown from a small alley in Jiangmen to nationwide and even overseas presence since its founding in 2012, with nearly 700 stores and three rounds of financing completed, valuing it at over 16 billion yuan. This article will trace the origins and development of Heytea's IPO rumors, review its brand growth and capital journey, and, drawing on industry observations such as those of Front Street Coffee, present a true picture of Heytea.
Hong Kong media recently reported that new-style tea beverage chain brand Heytea had already launched a plan to list in Hong Kong last year, is expected to be listed in Hong Kong in the second half of this year, and that CICC and UBS are said to be arranging management roadshows.
In response to this IPO rumor, Heytea denied it. Founder Neo Nie forwarded a screenshot of the related report on WeChat Moments on the evening of the 30th and added a clarification: "Since similar news has appeared too many times, I am making a unified statement here: we have no listing arrangements this year."
In fact, as an internet-famous tea beverage brand with long queues year-round, speculation about Heytea going public has never stopped. Coupled with the fact that another new tea beverage brand, Nayuki, suddenly disclosed its prospectus earlier this year and formally sprinted toward an IPO, outsiders naturally wondered: is Heytea also close to going public?
On September 8, 2020, people familiar with the matter revealed that Heytea was seeking to list in Hong Kong in 2021, which immediately attracted great attention. At the time, Heytea did not respond, and as early as 2019, rumors had already appeared in the market that Heytea was going to Hong Kong for a listing.
Heytea was founded in Shenzhen in 2012, starting from a small alley by the river in Jiangmen. Over the following two years, the founder opened 50 stores in Guangdong, and beginning in 2018, the brand gradually expanded overseas, entering Hong Kong and Singapore. By the end of 2019, Heytea had 390 stores across 43 cities nationwide; as of December 31, 2020, its global stores covered more than 60 cities, totaling 695.
Founder Neo Nie founded Royal Tea (the predecessor of Heytea) in Jiangmen, Guangdong Province, in 2012. The brand belongs to Shenzhen Meixixi Catering Management Co., Ltd., focuses on various leisure drinks, and adopts a direct-operated chain model. Because the early market environment was not well regulated and brand protection awareness was insufficient, copycat stores proliferated, and combined with obstacles in trademark registration, Royal Tea was forced to change its name to Heytea. From the beginning, Heytea aspired to become "the Starbucks of the tea beverage world."
Since its founding, Heytea has completed three rounds of financing.
In August 2016, Heytea received Series A financing from IDG Capital and Capital Today, amounting to 100 million yuan, mainly used for store expansion, product research and development, supply chain development, and delivery services. Shortly after the financing, Heytea began nationwide expansion, opening stores in first-tier cities such as Beijing, Shanghai, and Guangzhou.
In April 2018, Heytea completed Series B financing of 400 million yuan, with participation from Meituan-backed Dragon Ball Capital and Black Ant Capital. Leveraging the resource advantages of Meituan Dianping, Heytea launched delivery services and simultaneously entered overseas markets. In November of the same year, Heytea opened its first store at ION Orchard shopping mall on Orchard Road in Singapore.
In March 2020, Heytea received another new round of strategic financing, jointly led by Hillhouse Capital and Coatue Management, with the specific amount undisclosed. After the completion of this Series C financing, Heytea's valuation exceeded 16 billion yuan.
Overall, as a leading brand in the tea beverage industry, given its current development momentum, Heytea's listing is only a matter of time.
*Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
