Introduction:The chain coffee brand Manner Coffee is rumored to be preparing for a Hong Kong IPO as early as next year, with a valuation potentially reaching US$3 billion. Rising from a tiny 2-square-meter store in Shanghai to becoming a representative of the direct-operated model in the specialty coffee market, how has Manner managed to stand out in such a competitive landscape? What industry trends does this latest rumor reveal?
Several recent international media outlets, citing insider sources, have reported that the chain coffee brand Manner Coffee is actively preparing for an initial public offering (IPO) in Hong Kong, with plans to list on the exchange as early as next year.Its valuation could reach as high as US$3 billion at its peak.In response, Manner stated that it has “no comment,” marking a subtle shift from its previous stance of directly denying such rumors.
Looking back at Manner’s development, the brand started in Shanghai in 2015 from a tiny 2-square-meter store, focusing onhigh-value specialty coffeeand rapidly gaining market recognition through an operating model centered around dense community-based store placement. The brand has received investments from well-known institutions such as Today Capital, Meituan Longzhu, ByteDance, and Singapore’s Temasek, reflecting strong interest from the capital markets.
According to the latest statistics, as of November, Manner operates 2,234 stores nationwide, ranking sixth among major coffee brands. Notably, among the top six brands by store count, Manner and Starbucks China are the only two that maintain a direct-operated business model. Other competitors such as Luckin Coffee and Cotti Coffee mostly expand through franchising or joint operations.
In fact, Manner’s journey into the capital market dates back to 2018, when Today Capital invested RMB 80 million to help it grow from a single Shanghai store into a chain brand. However, due to differences in business philosophy with the founder Han Yulong, Today Capital eventually exited its investment. Subsequently, several institutions including Meituan Longzhu Capital, ByteDance, and Temasek joined the investment round. Among them, in 2021, Meituan Longzhu Capital made an exclusive investment of US$200 million, with the brand’s valuation at the time approaching US$2 billion.
Discussions about an IPO are not new. As early as 2021, there were market rumors that Manner planned to go public in Hong Kong in 2022, aiming to raise US$300 million. At that time, the founder Han Yulong personally denied the rumors. Although Manner responded quickly this time as well, the shift to a “no comment” stance has sparked speculation about whether the brand is preparing for future moves in the capital markets.
Looking at the current market environment, Manner’s competitors are making frequent moves. For example, Starbucks China has entered into a strategic partnership with Boyu Capital, while Luckin Coffee is reportedly considering another attempt to list on the U.S. main board. In such a competitive landscape, Manner may be evaluating raising funds through an IPO to support its future expansion and product development plans.
In terms of store numbers, although Manner’s current 2,234 stores still fall significantly short compared to market leaders like Luckin (27,930 stores) and Cotti (15,323 stores), itsdirect-operated modelensures consistency in quality control and brand image, which is particularly crucial in the specialty coffee market. Additionally, Manner demonstrates a precise understanding of its target customer base through its pricing strategy and store location choices, successfully balancing affordability with quality.
In summary, the IPO rumors surrounding Manner Coffee not only reflect the brand’s own growth potential but also highlight the intensifying competition across the broader coffee market. Whether it will indeed go public in Hong Kong next year remains to be seen, and the market is closely watching its next move.
The above content is compiled by CoffeeHunters, a coffee news website.
