(Yicai Global) July 20 -- Heytea founder Nie Yunchen has denied speculation that his company is planning to buy rival high-end tea brand Lelecha, the Paper reported today.

Rumors flew on July 19 that both Heytea and beverage firm Genki Forest were aiming to acquire Lelecha, with the Shanghai-based target’s estimated worth pegged at CNY4 billion (USD617 million), the report said.

China’s top tea brands have been seeking and banking investments since the start of the year. Shenzhen-based Nayuki filed for an initial public offering in Hong Kong last month, and Heytea wrapped up a USD500 million fundraiser this month. With money from Sequoia Capital and Hillhouse Capital, it is now valued at CNY60 billion (USD9.3 billion).

Founded in 2016, Lelecha has completed four financing rounds, according to corporate data platform Tianyancha. The most recent was last July, with Cypress Capital as the investor. But the amount secured and the valuation were not disclosed.

Nayuki, Heytea and Lelecha have not yet established their own unique advantages, Xiao Yao, Chinese partner at Ries Positioning Pioneers, was cited as saying by media reports. Each of them believes that they are preferred by certain consumers, Xiao said, but actually they can easily be substituted for each other.

Shenzhen-based Heytea had opened 695 tea shops in 61 cities at home and abroad as of February, according to its latest annual report. Sales reached CNY3.6 billion (USD558 million) in 2019, and the company had a 25.5 percent share of the high-end market as of last December, according to a report by Huaxi Securities.

Editor: Tom Litting