Chagee’s nasdaq debut reshapes china’s tea race
Nasdaq‑listed Chagee parlayed a single‑SKU, franchise‑powered sprint into a US $6 billion market debut, signaling China’s upscale tea boom is primed for global expansion.
Raises US $411 million in biggest U.S. China‑consumer IPO since 2021; shares jump 21 percent on day one.
Operates ≈6,700 franchised “teahouses,” adding >5,000 outlets in 24 months—the fastest build‑out in China’s premium drinks
2024 gross merchandise value (GMV) hits RMB 295 billion; up 173 % YoY on a single‑SKU strategy—91 % of sales stem from its “tea latte”
Filing shows 2024 revenue RMB 12.4 billion and net margin 20.3 %, out‑earning rivals Mixue and Guming.
iResearch forecasts China’s freshly made tea GMV to grow 11.8 % CAGR 2024‑28, beating bottled‑tea’s 6.9 %.
China’s xian‑zhi cha yin—freshly prepared tea drinks—has vaulted from street‑corner stalls to board‑room talking points. Years of urban café culture, surging delivery apps, and a consumer pivot to “healthy indulgence” have made tea chains the new coffeehouses.
Nasdaq‑listed Chagee—better known at home as Bawang Chaji (Bàwáng Chá Jī)—is the first of these up‑market tea brands to test U.S. capital appetite.
Listing: a $6.2 billion opening splash
At 09:30 p.m. Beijing time on 17 April, the stock (ticker CHA) opened at US $33.75, 21 % above its US $28 offer price, valuing the company at US $6.2 billion—a stronger pop than any China consumer float since RLX Technology in 2021.
It included four cornerstone investors—CDH (Dǐnghuī Tóuzī), Redwheel, Allianz Global Investors and ORIX Asia—together taking US $205 million of the deal.
Founder Zhang Junjie retains 89 % of voting power via dual‑class shares, mirroring U.S. tech‑style governance.
Product focus: one drink to rule them all
Instead of endless seasonal drops, Chagee bets on a blockbuster trio of “tea lattes”; flagship Bo Ya Jue Xian alone has sold 6 billion cups since 2021.
In 2024, the top three SKUs contributed 57‑61 % of GMV. Franchisees praise the narrow menu for trimming inventory and training costs; analysts liken it to Apple’s minimal‑SKU hardware playbook.
Franchise math: hyper‑growth with light assets
Store count leapt from 200 in 2020 to 6,440 by December 2024—a 145 % compound clip.