Founder Zhang Junjie Becomes a Billionaire Eight Years After Establishing Paewang Chahi
Paewang Chahi Expands Globally with 6,440 Stores and Eyes US Market
Unique Traditional Design and Health-Conscious Image Drive Local Success
Zhang Junjie's Journey: From Orphan to Nasdaq-Listed Entrepreneur
Zhang Junjie, founder of the Chinese milk tea franchise Paewang Chahi (Chagee), has become a billionaire after successfully listing his company on the Nasdaq, despite ongoing US-China trade tensions. This achievement comes roughly eight years after the company was founded.
On April 18 (local time), Chinese business media outlet Caijing reported that Paewang Chahi was listed on the US Nasdaq the previous day. On its first day of trading, the share price soared by as much as 49% at one point.
Through this initial public offering (IPO), Paewang Chahi raised $400 million (approximately 570 billion KRW) in investment funds. The net worth of founder and chairman Zhang Junjie has reached $2.1 billion (about 3 trillion KRW), placing him among the ranks of billionaires. It is reported that Zhang is still in his 30s.
Zhang founded Paewang Chahi in June 2017 in Kunming, Yunnan Province, China. Paewang Chahi sells milk tea based on traditional Chinese leaf tea, and has rapidly expanded its number of stores in China since gaining attention in 2021. The company turned a profit in 2023 and has pursued an aggressive expansion strategy every year to target the domestic market.
Paewang Chahi has especially distinguished itself from competitors with unique designs that emphasize traditional Chinese culture. Unlike conventional milk tea, which typically contains large amounts of sugar, Paewang Chahi has promoted a low-calorie, health-conscious image, creating a sensation in the local beverage industry.
Paewang Chahi is now continuing to expand into overseas markets. The Chinese fresh tea beverage market, including Paewang Chahi, is expected to grow from 273 billion yuan (about 53 trillion KRW) last year to 426 billion yuan (about 83 trillion KRW) by 2028. Paewang Chahi has already entered Malaysia, Singapore, and Thailand, and is scheduled to open its first store in Los Angeles, USA, soon. The company now operates 6,440 stores worldwide.
Meanwhile, Zhang's personal story has also attracted attention. Born in Kunming, Zhang lost his parents at a young age and became an orphan, reportedly living as a homeless person for seven years. It is said that he could not read until before the age of 18. In 2010, he finally managed to get a job at a milk tea chain in Taiwan, where his diligence was recognized and he was promoted to store manager. In 2017, he returned to his hometown of Kunming and used his experience as a manager to found Paewang Chahi.
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