Tencent-backed O2O healthcare platform raises $250m
Trusted Doctors, a China-based online-to-offline (O2O) healthcare provider has raised a $250 million round led by Tencent Holdings, Gaw Capital Partners, and the VC arm of local property developer Country Garden.
Other participants include CMB International, Harvest Wealth Management, Russia-China Investment Fund, Sequoia Capital China, Sensegain Asset Management, and Avic Trust. The fresh capital will be used to enhance the development of online and offline operations while complementing a healthcare services ecosystem. It is said to bring the company’s valuation to over $1 billion.
Founded in 2014, Trusted Doctors offers medical consultation and treatment through an app and offline clinics. The company has over 440,000 registered doctors at 30,000 Chinese hospitals, providing healthcare-related services to over 10 million patients. It operates 50 offline medical institutions across China and plans to increase the number to 500 by the end of 2021.
Last year, the company merged with Tencent Doctorwork, a joint venture between Tencent, Gaw, Sequoia China and Medlinker with a view to expanding the offline clinic network and enhancing online operations. Prior to the merger, Trusted Doctors raised RMB30 million ($4.5 million) from Sequoia China in a Series A and RMB200 million from FountainVest Partners.
Country Garden will pursue a deep strategic collaboration with Trusted Doctors by leveraging a large property portfolio ranging from schools to residential complexes, according to Hongru Zhou, a managing director at Country Garden.
China’s online healthcare services segment has attracted considerable PE and VC attention in recent years, with growth expected to be driven by an aging population and rising expenditure on healthcare services. Spending is set to reach $896.7 billion in 2019, according to Deloitte.
Ping An Healthcare & Technology, which runs mobile app Ping An Good Doctor, raised $500 million in funding in 2016 and then went public in Hong Kong last year. WeDoctor, a similar platform backed by Tencent, closed a $500 million round at a valuation of $5.5 billion in May 2018, while B2B pharmaceutical trading and education platform Yaoshibang received $133 million in Series D funding last December.
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