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CHINA BRIEF | On-demand tea company Naixuecha scores USD 100 million in investment

The startup is in preparations for an initial public offering but has shifted the destination from the US to Hong Kong, following the Luckin scandal.

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Shenzhen-headquartered tea company Naixuecha has closed a new round, bagging nearly USD 100 million from investors led by Shenzhen Capital Group, 36Kr reported on Tuesday, citing unidentified people familiar with the deal.

Naixuecha, which was set up in 2015, has owned and operated 349 tea houses in 50 cities in China as of February. The company also allows customers to order tea on its WeChat public account or its WeChat mini program.

This new round comes more than two years after the firm closed its Series A+ round, after which the company was valued at RMB 6 billion (USD 849 million), according to its website, which did not disclose other financial details. Valuation after this new round and use of these new funds are not known.

The fundraising deal also comes after on-demand coffee chain Luckin Coffee’s accounting fraud shocked the world, proving Chinese beverage startups can still gain investor confidence.

Naixuecha is in preparations for an initial public offering but has shifted the destination from the US to Hong Kong, following the Luckin scandal, 36Kr wrote on Tuesday, citing unnamed sources.

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.