Molly Tea: Alibaba's Pick, Nearly RMB 100M Investment – What's Its Path in the Cutthroat Tea War?

Is Opening a Milk Tea Still a Good Business in 2025?

A recent major investment has brought fresh energy to the Milk Tea industry, and a new Chinese tea brand—Molly Tea—is now in the spotlight.

On October 9, Shenzhen Molly Tea Management Co., Ltd. completed a funding round led by Alibaba’s local services division, raising nearly RMB 100 million. This money will be used for product development, branding, supply chain upgrades, team building, and supporting franchise partners with a lighter, more efficient store model.

Standing Out in a Competitive Market

Molly Tea opened its first store in Shenzhen in February 2021. It focuses on “Eastern floral tea drinks” and became known for drinks like Jasmine Milk Tea and Jasmine Cloud Top. By August 2021, it had already sold over 500,000 cups of its signature jasmine milk tea.

Back in 2021, the bubble tea market was already very competitive. Brands big and small were offering fruit teas, milk teas, and new ingredients to attract customers. To stand out, Molly Tea decided to focus on floral flavors.

Over the past three years, Molly Tea has kept improving its floral milk tea recipes. A company representative said, “We keep innovating based on what customers want. We aim to offer great taste, health benefits, and beautiful presentation.”

Today, Molly Tea offers more than just jasmine. It has expanded to include osmanthus, gardenia, pomelo flower, and bergamot flavors. New drinks are introduced every month to keep the menu fresh.

A customer from Beijing, Ms. Zhao, said, “I tried Molly Tea because of a collaboration event. The staff recommended their jasmine milk tea. Next time, I’ll try their pomelo or bergamot flavors.” She added that floral teas feel unique compared to standard milk teas.

This uniqueness is helping Molly Tea attract customers. Even on weekday afternoons, popular stores in Beijing have nearly 100 orders waiting. On weekends, it’s even busier.

Growing Fast in China and Going Global

Since opening in 2021, Molly Tea has grown from a local brand to a national chain. In April 2023, it started offering franchises. By June 2023, it had over 100 stores. By December, it reached 300.

Now, Molly Tea has more than 800 stores across 156 cities in China—from big cities like Beijing and Shanghai to smaller ones like Xining and Yinchuan.

To make it easier for new franchisees, Molly Tea recently introduced a smaller store model (35-40 m²). This lowers startup costs and helps owners recover their investment faster. The brand expects to have 1,100–1,200 stores by the end of 2024.

Molly Tea is also expanding overseas. On October 18, it opened its first Australian store in Sydney. Earlier, it opened locations in New York City and Bangkok. On October 25, it also launched in San Francisco.

Many Chinese tea brands are now looking abroad for new growth. Brands like Cha Bai Dao, HeyTea, Naixue Tea, and Mixue are all expanding into markets like Southeast Asia.

From November 27–30, the China Franchise Expo will be held in Indonesia—the first time this event is taking place overseas. It will help Chinese brands connect with international partners and explore new markets.