Local services platform Meituan Dianping has provided RMB400m ($63.1m) in funding for China-based milk tea brand Heytea, Shine News reported on Wednesday.
Founded in 2012, Heytea operates a chain of 90 milk tea outlets spanning 13 Chinese cities.
Milk tea, a drink where tea is flavoured by various fruits or topped with extra ingredients like cheese, has become increasingly popular in the country resulting in large queues outside some Heytea branches.
The funds will support an expansion that will allow Heytea to open another 100 branches in 2018, concentrating on second-tier cities such as Chengdu, Chongqing and Wuhan.
The company also plans to strengthen its delivery services, as some branches record 3,000 to 5,000 take-out orders each month according to China Money Network.
Meituan Dianping meanwhile already operates a thriving food delivery business which would be heightened by an investment in the milk tea space.
Heytea had previously raised approximately $15.8m in funding from venture capital group IDG Capital and retail and service-focused investment firm Guangdong Nowaday Investment in August 2016, according to Daxue Consulting.
– Photo courtesy of Heytea.