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CHINA BRIEF | Meituan-backed Heytea to close new financing round co-led by Hillhouse Capital

The new capital injection will boost Heytea’s valuation to USD 2.2 billion.

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Chinese bubble tea chain brand Heytea will soon close a new round of financing co-led by venture firm Hillhouse Capital and Coatue Management, local media 36Kr reported on Monday.

While the amount of investment has not been disclosed, the new round of capital injection will boost Heytea’s valuation to RMB 16 billion (USD 2.2 billion). When reached by 36Kr, the firm said that it could not provide more detailed information at the moment.

Heytea, which originated in 2012 from Jiangmen, Guangdong province, has become a phenomenon in the tea industry, wooing young consumers who at times have queued for hours in front of the chain’s stores. The firm has opened 381 stores in 43 cities in both China and Singapore as of the end of 2019.

The beverage chain has Longzhu Capital, a subsidiary of China’s on-demand service provider Meituan-Dianping, among its current investors. In July 2019, the firm reportedly raised a fresh round of financing led by social media giant Tencent and investment firm Sequoia Capital, according to LatePost.

36kr is KrASIA’s parent company.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.