Gong cha Could Be Sold or Taken Public at a Reported $600 Million Valuation

This is an English adaptation of a FoodBud historical article originally published on December 18, 2021.

FoodBud reported, citing Bloomberg and two people familiar with the matter, that U.S. private equity firm TA Associates was considering either selling bubble tea brand Gong cha in 2022 or taking it public, with a reported valuation of $600 million.

TA Associates was said to be working with Citibank to evaluate the best route for Gong cha. Another option under discussion was selling an equity stake to a partner that could help Gong cha enter new markets, including mainland China. The discussions were still at an early stage, and details such as timing could change.

TA Associates' Ownership

TA Associates is a global growth private equity firm focused on target segments across five industries: consumer, technology, healthcare, financial services and business services. Since its founding in 1968, the firm had raised $32.5 billion and invested in more than 500 companies globally, with offices in Boston, Menlo Park, London, Mumbai and Hong Kong.

TA Associates acquired Gong cha from Unison Capital in 2019. The deal value was not disclosed. At the time of the acquisition, Gong cha's business revenue had grown at a 43% compound annual growth rate from 2016 to 2019, and the chain had more than 1,100 stores.

Gong cha's Store Network

Gong cha was founded in Kaohsiung, Taiwan in 2006. By the time of the report, it had more than 1,500 stores across over 20 countries and regions, including Australia, Japan, Singapore, South Korea, the United Kingdom and the United States.

The brand entered Hong Kong in 2009, its first market outside Taiwan. Its reported footprint included:

• Hong Kong: 30 stores
• South Korea: more than 700 stores, making it the leading bubble tea brand there
• Vietnam: about 40 stores
• Philippines: more than 150 stores
• Australia: 100 stores

Gong cha's official website did not show store information for mainland China, while FoodBud noted that many copycat operators existed in the domestic market.

Note: IPO, valuation and forward-looking figures above are historical, based on reporting from December 2021.