Chinese pharmaceutical platform Yaoshibang raises $270m

Founded in 2015 by a former executive at Chinese real estate portal Soufang.com, the company distributes medicines from upstream drug manufacturers to pharmacies, clinics, and health centers. As of December 2020, it covered 350,000 distribution points.

Yaoshibang collaborates with large pharmaceutical companies - such as Guangzhou Baiyunshan, Harbin Pharmaceutical, Yiling Pharmaceutical, Besunyen Holdings, and H&H Group - providing a one-stop omnichannel digital marketing and supply chain management solution. This helps them cover a wide range of end markets more efficiently.

In the second half of last year alone, the company claimed to serve as the exclusive distributor for more than 1,000 treatments.

Yaoshibang raised RMB71 million ($11 million) in Series A funding from Shanghai Fosun Pharmaceutical, Co-Power Capital, and Ivy Capital in 2016. A Series B round of RMB110 million followed in 2017 co-led by Green Pine and Fosun, with Co-Power and Ivy both re-upping.

In June 2018, the company raised RMB420 million in Series C funding across two tranches, led by Shunwei Capital Partners and DCM respectively. A $133 million Series D followed later the same year led by Tiger Global Management, H Capital, and DCM.

“As a medical B2B e-commerce company, Yaoshibang connects manufacturers to points of sale, helping the industry achieve greater flexibility and customization in manufacturing. It also plays a key role in promoting supply chain transformation,” said Tian Cheng, a partner at Shunwei, in a statement.

Other recent investments in online drug distribution include TPG Capital leading a $220 million round for Dingdang Health. While Yaoshibang operates in the B2B space, Dingdang is a B2C pharmacy services provider.

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• Topics
• Greater China
• Expansion
• Healthcare
• China
• Baidu
• Pharmaceuticals
• Green Pine Capital Partners
• Growth capital