At the age of 34, she relied on 500 stores to prop up an IPO: Nayuki has a market value of 30 B

This is the best era for new consumer entrepreneurship in China, and a large wave of young founders are emerging.

Today, the first new tea drink was officially born.

The investment community reported on June 30 that Naxue’s tea successfully landed on the Hong Kong Stock Exchange, and the first new tea drink was officially born. The IPO issuance price is 19.80 Hong Kong dollars/share, based on this calculation issuance market value reached 34 billion Hong Kong dollars.

Behind Nayuki's tea is a romantic love story. In 2015, Peng Xin and Zhao Lin, born in the 1970s, officially founded Naixue's Tea. After completing the A+ round of financing in 2018, it became a new tea unicorn with a valuation of 6 billion yuan. In January of this year, Nayuki was valued at 13 billion after the new financing, and the market value has doubled until today's successful listing. So far, Peng Xin, Zhao Lin, and his wife have a net worth of over 20 billion Hong Kong dollars.

Along the way, Naixue's Tea has completed 5 rounds of financing, gathering well-known VC/PEs such as Tiantu Investment, Shenzhen Venture Capital, Pacific Alliance Investment Group (PAG), and Honghui Capital. Among them, with its exclusive investment in Naxue's A round, A+ round, and lead investment in the B round, Tiantu Investment became the earliest and largest institutional shareholder of Naxue.

Chinese consumer brands have ushered in a golden age, and a large number of young founders have begun to emerge. In addition to Naxue’s tea, there is no shortage of post-80s 90s in the new tea-drinking circle-tea Yan Yue Lu Liang, Hey Tea Nie Yunchen, etc., and in various categories such as coffee, beverages, ramen, beauty, fashion, etc., in every familiar new Behind the brand, young founders are collectively appearing.

Beginning with a blind date, the couple opened a tea shop and created a market value of 34 billion

A blind date many years ago created Nayuki's tea.

Born in 1987, Peng Xin graduated from the School of Business Administration of Jiangxi University of Finance and Economics in 2010. She started as a brand in a listed IT company, and gradually became the director. But like many girls, Peng Xin also has a "baking dream" in her heart.

Until December 2012, Peng Xin chose to resign and start a business. In the beginning, she drew up a business plan for herself, focusing on beverages, baking, and teaching, but she has been struggling to find a partner. "This plan now looks very naive, very layman, there are too many things to do, and there is no experience and resources." Peng Xin once recalled.

Until I met Zhao Lin. In March 2013, at the recommendation of a friend, Peng Xin met Zhao Lin, who had worked hard in the catering industry for many years. Facing Zhao Lin, a senior in the catering industry, Peng Xin spent two hours talking about her entrepreneurial dream. As everyone knows, Zhao Lin came with the purpose of going on a blind date, and he turned off other social activities before that.

Speaking of the first encounter between the two, Zhao Lin recalled in a speech many years later: “After I read her plan at the time, I thought this girl had a lot of ideas, but I also knew in my heart that this project would be difficult to succeed. Experience is the biggest shortcoming." So, Zhao Lin gave a solution to the problem, that is, Peng Xin became his girlfriend. Unexpectedly, the latter agreed without hesitation. "I said you were serious? She said yes! From then on, the two of us have been together every day, and after three months we will get married."

Soon, the couple put their entrepreneurial dreams into practice. Inspired by Peng Xin's online name "Naixue", they registered the trademark "Naixue's Tea" in 2014, hoping that everyone who sees this name can associate with beautiful things.

During the preparation process for more than a year, the biggest problem Zhao Lin and Peng Xin encountered was location selection. Nai Xue's tea shops are all positioned above 200 square meters, which is rare in the industry. Peng Xin once revealed: "At that time, no shopping mall was willing to give a large area of ​​stalls to an unknown tea brand, so we spent more than half a year looking for a location."

In November 2015, Naixue's first tea shop-Shenzhen Excellence Century Store opened, followed by Happy Coast Store and Huaqiangbei Jiufang Store. Since they started from scratch, Zhao Lin and Peng Xin even mortgaged their houses to the bank in order to open three stores in one go.

With such a radical idea, Zhao Lin and Peng Xin were right. With the innovative "tea + soft European bag" dual product line model, Naixue's tea has embarked on a road of rapid expansion. In 2018 and 2019, Nayuki's tea opened 179 and 174 new stores respectively, which is equivalent to opening one in two days, and the expansion speed is amazing. The prospectus disclosed that as of the end of December 2020, Nayuki's Tea has 489 tea shops in 66 cities in mainland China, and has expanded its business to Hong Kong, China, and Japan, and further increased to 562 as of the Latest Practicable Date.

Why did Nayuki stand out? First of all, in terms of site selection, Naxue abandoned the community store and street shop model that the tea brand chose in the past, and instead entered the core business district like Starbucks. Although the cost is high, the advantages are that it is easy to mine traffic, improve user stickiness, and have more scenarios for the extension. Secondly, Naixue's tea has gone out of the innovative product line of "tea + soft European bags". For every cup of tea sold, 1.2 soft European bags will be sold. In this way, more consumption scenarios have been expanded for consumers, and consumers can consume at the wrong time in addition to regular meals.

At the same time, Nayuki's tea is making efforts to diversify its operations. In November 2020, Nayuki's tea opened a brand new store type "Nayuki PRO" in Shenzhen, which is the fourth type of shop after Nayuki's tea, Nayuki's restaurant, and Nayuki's DreamWorks. Not only that, Nayuki's tea, which has always regarded Starbucks as the industry benchmark, also quietly launched 7 coffees some time ago, which has the potential to increase the coffee track.

On the night of New Year's Eve on February 11 this year, Nayuki's Tea formally submitted its prospectus to the Hong Kong Stock Exchange, which started the new tea drink IPO. Regarding the listing, Peng Xin said frankly that Naixue did not go public because of lack of money, and that the two hundred million yuan raised in 2020 is still useless. "We have always hoped to be able to make a global brand. The purpose of listing is to allow us to operate for a longer period of time, be more open and transparent, and become a company with higher demands on ourselves."

With the ringing of the bell, Zhao Lin and Pengxin, and his wife are one step closer to the goal of making a global brand. After the completion of the global offering, Zhao Lin, Pengxin and his wife will hold 62.64% of the shares. Based on the market value of the issue price of HK$34 billion, the two have more than HK$20 billion.

How does Nayue prop up an IPO: It has more than 560 stores and earns 3 billion yuan a year

How did Nayuki's tea make a cup of milk tea business on the market?

The prospectus shows that Nay Xue’s core tea menu currently has more than 25 classic teas and more than 25 classic bakery products. Among them, tea drinks include fresh fruit tea, fresh milk tea, and pure tea. In addition, it also provides a variety of retail products, such as tea gift boxes, snacks, and ready-to-drink tea beverages.

From the perspective of urban layout, first-tier and new first-tier cities are the main positions of Nay Xue’s tea. As of the Latest Practicable Date, 194 of its 562 stores nationwide cover first-tier cities and new first-tier cities, 135 stores in second-tier cities, and 39 stores in other cities.

And income has always been a point of concern for Nayuki. The prospectus shows that Nai Xue's tea revenues in 2018 and 2019 were 1.09 billion yuan and 2.5 billion yuan, respectively. But even the outbreak of the new crown epidemic in 2020 did not stop Nayuki's tea revenue from rising sharply, earning 3.05 billion yuan in revenue for the whole year.

Regarding the secrets of Nayuki's tea making money, we may find out one or two in the prospectus.

According to the data from the insight consultation, as of the end of December 2020, based on the number of cities covered, Naixue's tea has the most extensive network of high-end freshly made tea shops in China. In 2020, the average sales value of each order of Naixue's tea will reach RMB 43, which is much higher than the industry average of RMB 35, ranking first among high-end freshly made tea chains in China.

The high price per customer is just one of the reasons, and there is a huge membership system behind Nayuki. The prospectus disclosed that Nayuki's Tea launched a membership system in September 2019. The number of registered members has increased significantly from 9.3 million as of the end of December 2019 to 27.9 million as of the end of December 2020 and further increased to the latest practicable date Of 35.3 million. Among them, in 2020, about 49% of Nayuki's total tea orders will come from members.

But Nayuki, who had a halo over his head, was still questioned about losses. The prospectus shows that during 2018 and 2019, Naxue’s net losses were 69.73 million yuan and 39.68 million yuan, respectively, and the adjusted net profit (non-IFRS measurement) for 2020 was 16.64 million yuan, and finally turned losses into profits.

The reason is that the higher cost of raw materials bears the brunt. From 2018 to 2020, Nayuki's tea raw material costs were 384 million yuan, 915 million yuan, and 1.159 billion yuan, accounting for 35.3%, 36.6%, and 37.9% of total revenue, respectively. Based on this calculation, the sales gross profit margin of Nayuki's tea is 64.7%, 63.4%, and 62.1%, respectively, which are declining year by year.

In Pan Pan's view, short-term profitability and creation or creation of value are not completely equal. Whether a company has the ability to create more social value and a better consumer experience in the development process is more important. Thing, "Time is the best'weigher'."

After 6 years of starting a business, Nayuki also made planning mistakes in the development process. In May 2018, Naixue launched a new brother brand "Lishan" in Shenzhen, focusing on "famous tea + fresh-cut fruits", trying to capture shopping mall customers, business white-collar workers, and family consumption between 25 and 45 years old. By. But the good times did not last long. Due to poor operating efficiency, Nayuki's Tea has decided to stop operating Lishan and close the remaining two stores.

Afterward, Pan Panzai and the founding team reconsidered that the multi-brand strategy is not the right thing at the moment. "It's a bit like picking up sesame seeds and losing watermelons. If you make a mistake, you will immediately shut it down, so Nayuki's data this year is much better. "After experiencing this strategic mistake, Nayuki's Tea admitted in the prospectus that it is in the company's best interest to use the established brand awareness to promote long-term growth.

According to the plan, it will open about 300 and 350 Nayuki tea and tea shops in 2021 and 2022, mainly in first-tier cities and new first-tier cities, respectively. About 70% of them will be planned as Nayuki PRO tea shops in 2023. The number of tea and tea shops newly opened in Nayuki in 2010 will be at least the same as the number newly opened in 2022.

Tiantu voted for 3 rounds in a row, Shenzhen Venture Capital and Pacific Alliance entered the game: why did they vote for Naxue

Along the way, Naixue’s tea has completed at least 5 rounds of financing, and behind it has gathered VC/PE institutions such as Tiantu Investment, Shenzhen Venture Capital, Pacific Alliance Investment Group (PAG), and Honghui Capital. Among them, Tiantu Investment became the earliest and largest institutional shareholder of Naxue by virtue of its exclusive participation in Naxue's A round, A+ round and B-led round of financing.

Back to November 2015, Naixue’s first store, a tea shop with a focus on "tea drinks + soft European buns", opened in Shenzhen’s core business district Zhuoyue Shiji, and unexpectedly became popular on social media. Many people devoted themselves to it. Coming here for a few hours in a long queue to buy drinks, this phenomenon quickly caught Pan Pan's attention.

Soon, when Nayuki opened his second store, Pan Pan found Zhao Lin, the co-founder of Nayuki. "Tiantu's industry sense is very sensitive. Nayuki found us at a very early stage. When we first met, we talked with Pan Pan for two hours. After the chat, we felt that Tiantu knows the industry very well and made a lot of suggestions. Important questions left a good impression at that time.” Talking about this past, Naxue founders Zhao Lin and Peng Xin were still impressed.

For the next six months, they maintained the frequency of meeting once every two weeks, until Nayuki opened the 11th store, and the two sides began to formally discuss the topic of financing. Pan Pan revealed that the Tiantu team was also observing the changes in the new tea-drinking industry during that half-year and verifying some of its previous judgments. "Of course, he (Zhao Lin) is also observing whether I can cooperate. This is a gradual process."

In January 2017, Nayuki completed its first round of financing, and Tiantu invested exclusively. Because of the communication in the previous half-year, the two sides reached a high degree of consensus on many issues, so there was no too much entanglement on the terms. Here is an episode: At that time, the valuation given by an organization was more than 30% higher than that of Tiantu, but out of mutual understanding and trust, Nayuki chose Tiantu in the end.

Recalling this investment, Pan Pan revealed the logic behind it: At that time, the Tiantu investment team judged that China’s beverage trend will become inevitable, and tea is a category with more generality and cultural traditions, so it is very optimistic. Tea business. "From the perspective of the team, we researched almost all the tea companies on the market at that time, and when we look at it comprehensively, we feel that Nayuki's founder's philosophy, abilities, goals, and judgment on future development are more in line with our expectations. They are the kind of Entrepreneurs who are willing to provide users with better products and services through continuous innovation."

In December 2017, Tiantu once again exclusively invested in Nayuki's A+ round. It is rumored that this financing was done in the time of lunch: the two founders and Pan Pan had lunch. Speaking of the development plan of the year, they wanted to get another sum. Pan Pan asked how much he lacked, and he wanted it all. Up. But almost no one knows. After seeing the Tiantu, they negotiated with Nayuki's tea at the beginning of these two crucial investments.

In 2018, Naixue announced that it had completed the A+ round of financing exclusively invested by Tiantu, with a valuation of 6 billion yuan, making it the first unicorn in China's new tea industry. By 2019, the new tea drink boom is already vigorous, and Tiantu made its third shot and led the round B financing of Naxue. But soon, many doubtful voices circulated in the venture capital circle: Why has Nayue never introduced more new investors? Tiantu bite the bullet? These voices gradually reached Tiantu LP's ears, and some LPs couldn't help but send inquiries to Pan Pan.

"I have never wavered myself, but sometimes it is difficult to convey this confidence to LPs, and it also involves the protection of the project party." Recalling that period, Pan Pan's memory is still fresh, "To be honest, until Today we still have some strategies that cannot be disclosed to the public, and it is precisely these secrets that cannot be said that often constitute a very important part of decision-making."

The investment community has learned that Naxue’s Series B financing will be completed in 2020. In addition to Tiantu, the well-known local venture capital, Shenzhen Venture Capital, has also officially entered the market. “Consumption is one of the seven main directions that Shenzhen Venture Capital focuses on. The investment team will also spend energy on researching brands or iconic events in the consumer field. Naixue is a brand that the investment team has been paying attention to for a long time.” Shenzhen Venture Capital It was revealed that the 2020 new crown epidemic has a huge impact on offline restaurants in the catering category, and offline store companies such as Nayuki were also deeply affected during the epidemic last year. Due to continuous and long-term attention and research, the investment team saw opportunities when the entire catering industry encountered difficulties and invested in Nayuki's tea.

Here is an episode. The timing of Shenzhen Venture Capital's shot coincided with the Ruixing Coffee Thunder incident, which added more pressure to the team in addition to the epidemic factor.

After completing the investment, Shenzhen Venture Capital helped Naxue do three things: 1. In response to the global epidemic, it is recommended to increase digital investment and spare no effort to enhance online business; 2. The investment team has become Naxue’s teaHeavy consumers, real-time exchange of product experience and suggestions; 3. Objectively analyzed the fierce competition in the catering industry with Nayuki's management team, and established Nayuki's efforts to become "the first stock in the new-style tea industry" in terms of capital operation. The target of the company, and the listing place is determined to be Hong Kong. Now this phased goal has finally been achieved.

Since then, in January 2021, Naxue's Tea completed a Series C financing of more than 100 million U.S. dollars, and the lead investor is the Pacific Alliance Investment Group (PAG), a well-known Asian PE institution. This is also the first time that Taming Investment has launched a new domestic tea brand. So far, Nayuki's tea is valued at nearly 2 billion U.S. dollars or about 13 billion yuan. Until today, the market value has reached 34 billion.

A new generation of founders collectively debut, this is the best era for China's new consumer entrepreneurship

Chinese new tea came quietly to the second half, and the head behind came to the front desk. Behind these well-known tea brands-Naixue's tea, hi-tea, tea Yan Yue color, Michelle Ice City, is the collective appearance of young founders such as Peng Xin, Zhao Lin and his wife, Nie Yunchen, Lv Liang, and so on.

The most important opponent of Nayuki's tea-Hey Cha, the helm is a post-90s generation. Nie Yunchen was born in Jiangxi in 1991 and followed his parents to Jiangmen, Guangdong. After graduating in 2010, 19-year-old Nie Yunchen walked out of school and accidentally embarked on the road of entrepreneurship. He opened a mobile phone shop in Guangzhou and accumulated his first pot of gold. In 2012, Nie Yunchen opened a shop called Huangcha and started the milk tea business.

In 2016, Nie Yunchen changed the name of Huangcha he founded to Xicha, and obtained 100 million yuan financing from IDG Capital and angel investor He Boquan. The story of China's new tea drink began. Since then, Nie Yunchen has led Hey Tea all the way and gathered a group of venture capital institutions, including Meituan Dragon Ball, Sequoia China, Black Ant Capital, Tencent, Hillhouse, Coatue and other well-known institutions. In August 2020, HiTea founder Nie Yunchen ranked 81st among Shenzhen's wealth creation companies with a net worth of 4.092 billion yuan, becoming the youngest among them.

A few days ago, the investment community was exclusively informed that the latest round of financing for HeyTea is about to be completed. The investors are all old shareholders, and the valuation has reached an unprecedented 60 billion yuan, which once again set a new financing record for Chinese tea.

Like Naixue, another online black tea brand-Cha Yan Yue Se, the helm, Lu Liang is also a post-80s generation. In the early years, Lu Liang and Nie Yunchen went through several entrepreneurial ventures, having opened an advertising agency, sold popcorn, and opened a lo-mei shop. In the winter of 2013, Lu Liang founded the tea brand Cha Yan Yue Se in Changsha and opened the first store. After dormant for many years, Cha Yan Yue Se has become a new landmark of Changsha cuisine that is as famous as stinky tofu. At the end of 2020, the tea color will be out of Hunan.

Chayanyuese received Tiantu's investment at the beginning of its establishment. Since then, investors have also included Shunwei Capital, Yuansheng Capital, and Source Code Capital. "Since last year, Cha Yan Yue Se has no investors." A VC partner close to Cha Yan Yue Se revealed to the investment community. The investment community has recently learned that Cha Yan Yue Se is also about to take the first step of its IPO.

In the new tea-drinking circle, there is also an Internet celebrity brand that has to be mentioned, and that is Michelle Ice City. From the cold food stall on the side of the road in 1998 to the first small store of 20 square meters in 2001, to the current national chain of fresh ice cream and tea drinks, Zhang Hongchao from Henan performed another grassroots counterattack. story.

This year, Michelle Ice City, which runs through the streets and alleys, completed a new round of financing from well-known institutions such as Hillhouse, Meituan Dragon Ball, CPE Yuanfeng, etc. The valuation has exceeded 20 billion yuan, and the company’s A-share listing has also been completed. Table stage.

The new generation of founders created the starting point for new tea drinks in China. The new tea drink is just a microcosm. China's new consumer market with big fish and big fish is extremely popular.

In 2020, with the bell of Bubble Mart’s IPO, Wang Ning, the post-80s helm behind him, officially surfaced. This young man born in 1987 made the blind box and trendy play culture completely explode, and also made consumer investors. Feeling: Learn to embrace young people; in the same year, Perfect Diary successfully went public in the United States. Behind it are also three post-80s who graduated from Sun Yat-sen University. Han Yulong and Lu Jianxia, ​​the founders of the popular coffee brand Manner this year, are a pair. Post-80s couples... Ramen said that Yao Qidi and the founder of cosmetic contact brand Moody Ci Ran are all post-90s.

This is the best era for China's new consumer entrepreneurship. This vast ocean is surging with countless new opportunities. Everyone believes that many world-class consumer giants with a market value of 100 billion will be born in China. And behind one new brand after another, a large wave of young founders are emerging.