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Doris Yu · · 1 min readReport: Tencent-backed online mutual aid platform shuts down
“Beijing-based online mutual aid platform Qingsong Huzhu stopped operations on Wednesday. Before the shutdown, the site registered 17 million users at the end of May last year, second only to Ant Group’s Xiang Hu Bao with about 100 million members,” KrAsia reported.
Details:
- According to the report, the firm closed down due to regulatory issues, and it will roll out a “better product in the future.”
- The company may have had “excessive operational costs” and insufficient liquidity, it added.
Context:
- On the mutual aid platform, people can get basic health coverage and, in the case of a critical illnesses, share medical costs with other members. The service allows users to avail of an initial membership for US$1.5 and gain a payout of US$45,835. It also operates a crowdfunding platform where users get funding for medical treatment.
- Qingsong Huzhu is backed by Tencent and IDG Capital, among others.
Editing by Collin Furtado and Jaclyn Tiu
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