Genki Forest Seeking $15 Billion Valuation in New Funding Round

(Bloomberg) -- Genki Forest, a Chinese beverage maker known for its flavored teas and sparkling water, is nearing a deal to raise $500 million in fresh capital at a pre-investment valuation of $15 billion, people familiar with the matter said.

Investors including Temasek Holdings Pte and Warburg Pincus participated in the new round, the people said, asking not to be identified as the information is private. Coatue Management and IDG Capital have also invested, one of the people said. 

The closely held startup, also known as Yuanqi Senlin Beijing Food Technology Group Co., completed a funding round in April which valued it at $6 billion, Genki Forest’s existing investor Cathay Capital said in a statement the same month. 

Deliberations are ongoing and details such as the fundraising size could change depending on investor demand, the people said. Chinese media 36 Krypton reported this week that the company was raising $200 million in the new round. 

Representatives for Genki Forest, Temasek and Warburg Pincus declined to comment, while Coatue and IDG didn’t immediately respond to requests for comment. 

Founded in 2016, Genki Forest makes low-calorie drinks that appeal to health-conscious consumers, according to Cathay Capital’s April statement. The company sells its products across China and has entered overseas markets such as the U.S., U.K., Singapore, Japan and South Korea.

Genki Forest’s revenue more than tripled in 2020 from a year earlier to 2.4 billion yuan ($375 million), according to an investor deck seen by Bloomberg News. Sales stood at 2.26 billion yuan in the first five months of this year. 

Many Chinese beverage companies, ranging from coffee chains to sellers of bubble tea, have been raising cash either by pursuing private funding or initial public offerings to help expand their footprint.  

Investors are also focusing on consumer brands that promote healthy lifestyles. Plant-based meat producer Impossible Foods Inc., which competes with Beyond Meat Inc., is in discussions to raise about $500 million at a valuation of $7 billion, Bloomberg News reported last month. 

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With assistance from Bloomberg