Sequoia-Backed Digital Healthcare Platform WeDoctor Secures CNY 1 Bn in Strategic Funding

Healthcare Author: Yiran Xing Jul 05, 2022 05:04 PM (GMT+8)

Chinese state-owned capital is strengthening its strong involvement in investment.

Medical health

Digital healthcare service platform WeDoctor (Chinese: 微医) recently secured a strategic funding round of over CNY 1 billion. The lead investor is a state-owned industrial investment fund from China's Shandong Province.

Until now, WeDoctor has completed eight rounds of financing with a cumulative amount of over USD 14.5 billion. Investors include Sequoia Capital China, Goldman Sachs, CDB Capital (Chinese: 国开金融), Hillhouse Capital (Chinese: 高瓴资本), and Tencent Investment (Chinese: 腾讯投资).

WeDoctor is part of a flock of technology companies aiming to transform China’s healthcare system with advanced technology. The medical platform spans insurance policies, medical supplies, online appointment booking, and clinics. The national health-care operator, which covers more than 95% of the population, is working with the firm to provide insurance-covered health care.

One of the key reasons for the attention given to this financing is the fact that the investor is a Chinese state-owned industrial investment fund. State-owned funds will maintain a strong involvement in investment guidance for a considerable period after COVID-19. In addition, some market-based funds are also increasing their cooperation with local government guidance funds.

State-owned funds have a clear preference for projects, for example, they have a higher demand for mature targets, and they take into account the stage, geography, and performance of the project. At the same time, they prefer regional projects to drive the development of local industries.

The competitors of WeDoctor include DXY (Chinese: 丁香医生)、AliHealth (Chinese: 阿里健康) and Ping An Healthcare and Technology Co. Ltd.(Stock code: 01833.HK) (Chinese: 平安好医生).