Chinese bubble tea chain Nayuki has acquired a significant share in the operator of premium tea chain Lelecha for US$75 million. 

The acquisition deal will make Nayuki the majority shareholder of Lelecha Cayman with an 85 per cent stake, representing 43.64 per cent of Lelecha operator Shanghai Chatian Catering Management. 

Nayuki said Lelecha’s strength in store expansion, supply chain, digitalisation and automation, and internal management would empower further growth of Shanghai Chatian, which will in turn provide a good return on investment. 

“In addition, the investment will further optimise the competitive environment of the industry and reduce the costs of the company in-store expansion and operation in the future,” Nayuki said in the filing. 

Lelecha reported $125 million in revenue last year. The chain eyes opening 72 new stores next month, taking its store network to 158 by the Lunar New Year holiday. According to IIMedia Research, China’s tea market is expected to reach $28.6 billion by 2030. 

In 2020, Chinese fruit-based cheese tea brand Nayuki expanded into Japan, opening its first cafe in the Zero Gate shopping complex in Osaka.