Fosun invests $18m in Chinese pet services player

The company - known as Aichongyisheng in Chinese - has previously received four rounds of funding from the likes of CICC Capital, Puhua Capital, Probing VC, and Mengdian Asset Management. Puhua and Probing VC both manage renminbi-denominated funds that target early-stage technology investments. 

A spokesperson for Shanghai Yuyuan Tourist Mart - the Fosun unit responsible for the deal - said that China's pet industry has become a large and attractive consumer market. Pet Doctor fits the firm's strategy because it combines pet services and technology. Fosun's previous investments in the space include Crazy Dog, which produces foods and toys for pets.

Founded in 2015, Pet Doctor is one of the largest platforms of its kind in China. In addition to pet health consultations and hospital software, it provides B2B procurement services for pet stores and training for animal health professionals.

The company claims to serve two million registered pet owners, 13,000 pet hospitals and 17,000 pet stores across 300 cities, as well as covering 75% of the pet hospital market. On the product side, it collaborates with more than 300 domestic and overseas brands, selling more than 5,000 items.

Spending on pets will reach RMB472 billion over the next five years, up from RMB172.2 billion in 2018, according to Frost & Sullivan. Last year, the average expenditure per cat or dog hit RMB5,580. PE and VC activity in the space is rising. The money is flowing into three main categories: pet services, including healthcare providers; online and offline retail sales channels; and staple foods and other pet products such as toys. The latter category is the largest.

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• Topics
• Consumer
• Greater China
• Expansion
• Technology
• TMT
• China
• CICC