Chinese media outlet 36Kr reported on Tuesday that Genki Forest is about to complete a new round of financing worth nearly $200 million, making its market valuation reach $15 billion. The financing will be led by Temasek, followed by Sequoia Capital China and Warburg Pincus. Genki Forest hasn’t commented on the report.
The funds will be mainly used for product research and development, investment in self-built factories and overseas market expansion. This round of financing started in July and is justthree months after the end of its last round of financing. According to 36Kr‘s sources, when the financing at the beginning of the year drove the company’s valuation to $6 billion, some leading investors secured this round of financing with a $12 billion valuation, but Temasek gave a higher valuation.
This beverage company just lost tens of millions of RMB due to an operation incident through an online shop just weeks ago.. From 2018 to 2020, its sales volumes totalled was 160 million, 870 million and 2.4 billion in each of those years and the company was able to maintain its rapid growth for three consecutive years. In 2021, its target sales are 7.5 billion offline and 800 million online.
In order to expand more quickly, according to several dealers, since 2019, Genki Forest has made personnel adjustments in major regions, changed its original management structure, and added many salespeople in lower-tier cities. A dealer said the offline channel team of Genki Forest has expanded rapidly in the recent two years.
Since 2020, Genki Forest has covered more than ten categories through investment and acquisition. The company’s product range now consists of meat products, low-calorie food, snacks, coffee and alcohol.
In addition to channel expansion, Genki Forest mainly invested in self-built factories. At present, five factories have been put into production, and it is estimated that 80% of the production will be completed by its own factories by the end of 2021. According to an official announcement, the investment of Genki Forest’s Tianjin Factory reached over 500 million yuan, while the initial cost of its Anhui Factory was as high as 450 million yuan.
According to company data, Genki Forest’s products can be found in many major first-and second-tier cities in China, and are also being exported to the United States, Singapore, New Zealand and other countries.