Matrix backs China consumer-focused genetic testing player

Other contributions came from Shenzhen-listed Hanwang Technology as well as funds operated by Tianjin Yahui Mingze Asset Management and Chengdu Deshang Qidian Equity Investment Fund Management. It is the company’s fifth round of funding since its founding in 2015, taking the total raised to a reported RMB200 million.

23Mofang claims to have accumulated saliva samples from more than 150,000 people. These data are used to identify genetic anomalies that could impact the effectiveness of drugs or contribute to a higher risk of certain diseases. Charging RMB499 per test, the company sends sampling sets to customers, arranges collection, and delivers the results within 20 working days.

23Mofang has its own testing center and conducts tests using biochips co-developed with US-based Thermo Fisher Scientific. The latest capital injection will go towards improving and expanding the test center as well as marketing and the introduction of new products.

Growth in direct-to-consumer (DTC) genetic testing globally is driven by greater health awareness among consumers and falling costs. Eric Yu, a director at Matrix, noted that US-based AncestryDNA sold more than one million genetic testing kits during last year’s Thanksgiving sale period, while genome-sequencing businesses like Illumina are aggressively pursuing the consumer market.

In China, the best-funded genome-sequencing player is WuXi NextCode, which closed a $240 million extended Series B round last September led by Sequoia Capital China. About 80% of revenue comes from licensing intellectual property rights to global drug developers, with the rest from testing services for individual consumers. By 2020, 60% of the revenue is expected to be consumer driven.

Hong Kong-based genetic testing provider Prenetics is also targeting the consumer market, with operations in several Southeast Asian markets and plans to leverage its Hong Kong presence to enter mainland China. The company received $40 million in funding last year from Beyond Ventures and Alibaba Group’s Hong Kong Entrepreneurs Fund.

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• Topics
• Greater China
• Early-stage
• Healthcare
• Technology
• Venture
• China
• Matrix Partners