Temasek leads $200m Series E for China's Arrail Dental

OrbiMed, Hong Kong-based Ward Ferry, Hina Group, Industrial Bank, and Korea-based Mirae Asset Global Investments also participated in the round.

KPCB and Qiming Venture Partners invested in a $20 million Series A round for the company in 2010, and then GL Capital came into a Series B, also worth $20 million, in 2011. Arrail raised a $70 million Series C round in 2014 led by New Horizon Capital, followed by a $90 million Series D from Goldman Sachs and Hillhouse Capital.

Arrail launched its first dental clinic in Beijing in 1999. Focusing on the mid-to-high-end market, the company offers general therapy, cosmetic dentistry, dental implants, orthodontics, and children's dental care, among other services. It now has more than 100 clinics and hospitals in 16 Chinese cities and has served over 10 million patients since its inception.

While Qifang Zou, the company's founder and president, announced plans in 2017 to build a network of more than 1,000 clinics over a period of 5-8 years, the focus appears to have shifted from quantity to quality.

"For a long time, the demand for oral medical services in China has not been fully released. The domestic market is now worth more than RMB100 billion ($15.3 billion), and with increasing consumption levels, the public has become more concerned about oral health. Arrail has always adhered to the customer-centric service concept and the principle of appropriate treatment, providing a full-cycle one-stop service from the perspective of customer needs," Zou said in a statement.

According to Qianzhan Industry Research Institute, between 2008 and 2019, China's dental medical market saw compound annual average growth of more than 15%.

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• Topics
• Greater China
• Expansion
• Healthcare
• China
• Temasek Holdings
• OrbiMed
• Mirae Asset Private Equity
• Growth capital