PE-backed Chinese healthtech firms to merge
China-based healthcare platforms Tencent Doctorworks and Xingren.com, both of which have several private equity and venture capital investors, have agreed to merge.
Both Tencent Doctorworks and Xingren are backed by Sequoia Capital. Gaw Capital is also an investor in Tencent Doctorworks, along with Tencent Holdings and Medlinker, a Chinese social networking platform for doctors also backed by Tencent. Xingren has received funding from the likes of Lightspeed China Partners and FountainVest Partners, which led a RMB200 million ($32 million) round for the company in 2015.
AVCJ understands that all of the investors will retain their stakes after the merger; financial terms of the transaction have not been disclosed. The two brands will continue to be managed separately, while the founders of Tencent Doctorworks and Xingren will serve as CEO and president of the combined company respectively.
Tencent Doctorworks was founded in 2016 by Tencent, Gaw, Medlinker, and Sequoia. The company operates a chain of 23 clinics in Beijing, Chengdu, and Shenzhen, and aims to provide comprehensive health management services through its online platform, with users ideally being able to fulfill all their routine healthcare needs without going to an outside medical services provider.
Xingren launched in 2013 as Kangchufang, a mobile app to help patients connect and book appointments with doctors and store their medical records on an anonymous basis. The company now has more than 430,000 doctors on its platform, and additionally owns six clinics in Guangzhou, Shenzhen, Shanghai, Chengdu, and Shenyang.
Tencent and fellow tech giant Alibaba Group have shown considerable interest in the country’s online health information space in recent years. Tencent’s portfolio in the sector includes Medlinker, Miaoshou Doctor, and We Doctor Group, while Alibaba has supported companies such as medical information and payment provider Winning Internet and healthcare software provider Mandala.
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