China TCM clinic chain Gu Sheng Tang raises $70m
Gu Sheng Tang, a traditional Chinese medicine (TCM) clinic chain, has raised $70 million in a Series C round led by US-based insurance firm Starr Companies, followed by China Ping An Insurance.
The company was set up in 2010 by Zhiliang Tu, a co-founder of Chinese healthcare services provider iKang Healthcare Group. It currently operates 20 TCM centers in major cities including Beijing, Guangzhou, Shenzhen and Nanjing. In addition to physical clinics, Gu Sheng Tang has launched a mobile app that connects patients and doctors.
The company previously raised a Series A round from New Enterprise Associates (NEA). Eight Roads, formerly Fidelity Growth Partners, led a $30 million Series B round in April last year.
With the new funding, Gu Sheng Tang plans to invest RMB300 million ($46 million) to expand its network and build its own specialty hospital in 2017, the company said in a statement. Some of the capital will also be used to improve the quality and efficiency of its supply chain, from medical herbs planations to drugs delivery.
Speaking at a press conference, Tu said the company wants to introduce TCM to the global market and create an international brand. Therefore, it chose to partner with foreign funds and insurance companies.
Starr Companies provides property, casualty, accident and healthcare insurance products as well as a range of specialty coverages including energy and marine insurance. In Asia, it has so far committed more than $1 billion to PE funds and direct investments across healthcare services, drug development, consumer and retail, as well as internet finance.
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