China's WeDoctor gets $500m pre-IPO round
WeDoctor, a Chinese online healthcare platform backed by Tencent Holdings, has received a $500 million round of funding – at a valuation of $5.5 billion – from Hong Kong-listed insurance company AIA Group and infrastructure and services conglomerate NWS Holdings.
The investment was described as a pre-IPO round with the company expected to list later this year. Several other existing and new investors also took part, including CICFH, a vehicle established by Zhongcai Financial Holding and China Investment Securities.
WeDoctor was founded in 2010 as Guahao, a portal that connected patients with hospitals and doctors. It received early backing from the likes of Morningside Ventures, but the business was transformed when Tencent led a $100 million round in 2014.
The company was rebranded as its portfolio expanded to include mobile app WeDoctor and insurance unit Accountable Care Organization, as well as Guahao. The WeDoctor app was integrated with Tencent, making it accessible through messaging services WeChat and QQ. And in addition to scheduling hospital and doctor appointments, it could be used to receive online consultations, make payments and obtain medical reports.
In 2015, Hillhouse Capital and Goldman Sachs led a $394 million round for the company, with participation from Tencent, Fosun Group, and China Development Bank Capital.
The WeDoctor network now has four business segments – healthcare, insurance, pharmacy, and cloud-based technology – and serves 110 million registered users, including 27 million monthly active users. It has connections to 2,700 hospitals and 15,000 pharmacies across 30 provinces, and 220,000 general practitioners and specialists. The company also established China's first internet hospital, which is equipped with smart health terminals and integrated hardware and software.
As part of the latest investment, AIA will become WeDoctor's preferred provider of life and health insurance solutions and AIA customers will be able to access the Chinese company's suite of products. "This partnership not only helps us to cement our position as the premier technology-enabled healthcare solutions platform in China but will also support us as we expand our international presence in the years to come," Jerry Liao, chairman and CEO of WeDoctor, said in a statement.
Partnering with an insurer should allow WeDoctor to compete more effectively with Ping An Healthcare & Technology, which completed a $1.1 billion IPO earlier this month after being spun out from Ping An Insurance. The company's core offering, Ping An Good Doctor, performs a similar function to WeDoctor in connecting patients and healthcare providers. It also sells wellness and insurance products.
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