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Chinese premium tea company Chagee is making a bold move into the U.S. market, having officially filed for an initial public offering (IPO) on the Nasdaq under the ticker symbol "CHA." This comes alongside plans to launch its first American store at Los Angeles' Westfield Century City mall in the coming months.
Founded in 2017, Chagee has rapidly expanded, with over 6,400 tea shops across China, Malaysia, Singapore, and Thailand. The majority of these stores—approximately 97%—are based in China. The company has experienced substantial financial growth, with revenue nearly tripling to 12.41 billion yuan ($1.7 billion) in 2024, while net income surged by 213.3% to 2.51 billion yuan ($344.5 million).
Chagee's founder and CEO, Junjie Zhang, envisions a modernized tea-drinking culture inspired by global coffee chains. He has emphasized the company's commitment to reviving traditional tea-making techniques using advanced technology to enhance the beverage's authenticity.
The company has set ambitious global expansion targets, aiming to serve tea lovers in 100 countries, create 300,000 jobs, and sell 15 billion cups of freshly brewed tea annually. Entering the U.S. market is a key milestone in this strategy.
Despite geopolitical and regulatory challenges that have led to a decline in Chinese company listings on U.S. stock exchanges, Chagee has secured approval from China's securities regulator to proceed with its IPO. The company plans to issue up to 64.7 million shares.
Chagee's U.S. debut coincides with Luckin Coffee's reported plans to enter the American market. Luckin, which has outpaced Starbucks in China, is expected to open in New York City with low-cost beverages targeting Chinese students and tourists.
As Chagee introduces its high-quality tea offerings to the U.S., it will compete in a market dominated by established coffee brands. However, the company's focus on freshly brewed, premium tea could position it as a strong alternative for consumers seeking variety beyond coffee.
