Meituan Dianping invests US$63.5 million in local milk tea chain store Heytea
Local milk tea chain store Heytea received a 400 million yuan (US$63.5 million) boost from Meituan Dianping which is tapping the boom in leisure dining as it seeks synergies between online and offline.
DragonBall Capital, an investment fund affiliated to China’s leading lifestyle services platform, said the two parties would collaborate closely to enhance consumer experience and build new retail formats.
Heytea was one of the most popular milk tea brands creating a buzz in China last year after consumers were reported to be queuing hours for its cheese-topped style tea and fruit tea at dozens of outlets.
Chinese consumers spend an average of US$160 annually on out-of-home dining and non-alcoholic beverages annually, according to a latest report by Kantar Worldpanel.
Heytea targets opening 100 new stores this year to add to its current 90 outlets in 13 domestic cities.
