Can boba tea make you a billionaire? Hong Kong millennial offers proof
China has an insatiable urge for food for boba, or bubble tea. The proof? The drink has helped one other man develop into a billionaire in a single day.
Guming Holdings lately launched a $233-million (over ₹2,013 crore) IPO, which elevated the online price of its personal Founder, Yun’an Wang, to $1.2 billion, making him part of the billionaires membership, based on Bloomberg knowledge.
The corporate’s shares rose as a lot as 4.6% to about $1.3/share on Wednesday earlier than trimming features. The bubble tea market was price $9.6 billion in 2018 and is forecasted to develop to $71 billion in three years.
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Guming Holdings sells boba tea beneath the ‘Good me’ model identify and targets smaller cities and townships, the place bubble tea isn’t available.
The way it began
Wang had began his first retailer in his hometown of Daxi, a tiny place by Chinese language requirements with a inhabitants of beneath two lakh, almost 15 years in the past. In accordance with native media, there have been days when he would solely promote round 100 yuan ($14) of tea a day — even after promoting some drinks to his co-founder.
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Since then, speedy development has helped his firm develop to just about 10,000 shops and emerge because the second-largest model amongst freshly-made bubble tea makers when it comes to complete gross sales and variety of shops by the tip of 2023.
Guming’s Good me had a market share of 9.1% as of the tip of 2023 amongst China’s high 5 bubble manufacturers, trailing solely Mixue’s 20%, based on the analysis.
Who’s the billionaire?
Wang’s guardian ran a small retail enterprise close to the border with Myanmar. He pursued a bachelor’s diploma in materials science and engineer in 2010 from Zhejiang Sci-Tech College, the identical yr he opened his first boba tea retailer.
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As of September, Wang’s firm Guming Goldings was current in 17 provinces throughout China.
The trade is “at all times stuffed with loopy promotions,” Guming’s Wang stated in an interview to Southern Metropolis Each day in December 2023. “We’re already used to a worth struggle. Yearly there might be a brand new bubble tea model popping up.”
