China’s Gu Sheng Tang raises $150m in equity, debt funding

Several state-owned enterprises and domestic financial institutions participated in the round. They included China Life Insurance, China Merchants Bank International, Shanghai International Group, China Orient Asset Management, as well as three local government-backed funds from Shenzhen, Chongqing, and Shanghai, according to a statement.

The company was set up in 2010 by Zhiliang Tu, a co-founder of healthcare services provider iKang Healthcare Group. It operates 31 TCM centers in 13 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. Through partnerships with Chinese public hospitals, the company now has about 1,500 doctors on its platform. They provided consultations and treatment to approximately three million patients last year.

The company has previously raised three rounds of funding, including a Series A round from New Enterprise Associates (NEA) in 2014, and a $30 million Series B led by Eight Roads in 2015. Last year, US-based insurer Starr Companies led a $70 million Series C round for the company, followed by China Ping An Insurance.

Following the Series D, Gu Sheng Tang plans to grow its network of professional doctors. The company has launched a partnership model, allowing doctors to take up to 30% shares in a single clinic.  

Recent activity in this space includes a $14 million Series B round for online TCM services provider Xiaolu Clinics, led by Redpoint Ventures and Sinovation Ventures. Last year, Tower Capital partnered with Temasek Holdings in a S$269 million ($196 million) takeover bid for TCM operator Eu Yan Sang International.

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• Topics
• Greater China
• Healthcare
• Expansion
• Consumer
• China
• healthcare
• Growth capital
• China Life