Ant-backed Chinese healthtech startup scores over $300m in series C round

Healthtech firm MediTrust Health secured 2 billion yuan (US$308 million) in a series C financing round from investors, including Boyu Capital, Lilly Asia Ventures, and China International Capital Corporation.

The latest funds come just months after the China-based startup raised 1 billion yuan (US$154.2 million) in a series B round in March from the likes of Ant Group, Shanghai Biomedical Fund, and Sinovation Ventures.

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Founded in Shanghai in 2017, MediTrust Health is an online healthcare payment and pharmacy platform that offers prescription medicine delivery and an online system to settle medical bills. MediTrust’s Yaokangfu platform includes over 2,000 pharmacies in more than 400 cities in China to provide access to a range of medicines covering a variety of rare diseases.

As of May 2021, the gross merchandise value of drugs sold on the platform reached 10 billion yuan (US$1.5 billion), with an average of 3,000 patients purchasing medicines daily.

Cooperating with health insurance providers, the company aggregates health insurance products on its Kangfu Zhibao platform, offering patients convenient access to services that include customized policies and payment settlements.

MediTrust uses data gathered from pharmaceutical transactions and insurance services to make the purchase of medicines more efficient. As of May 2021, the firm claimed to have saved patients over 1 billion yuan (US$154.2 million) in drug costs.

Boosted by strong demand for the digitalization of healthcare services, MediTrust projects its annual revenue to exceed 1 billion yuan (US$154.2 million) this year and is eyeing an initial public offering by the end of 2021. The bullish momentum in the healthtech sector has driven a host of Chinese digital healthcare companies to seek public listings. These include LinkDoc, Medbanks, and Yuanxin Technology.

See also: What’s ailing Indonesia’s telehealth industry?

MediTrust’s founder and CEO Zhang Xiaodong has extensive experience in the pharmaceutical industry, having previously worked for Boston Consulting Group as a member of its healthcare team. Zhang also served as the chief operating officer of Shanghai Pharma from 2015 to 2017. He is especially optimistic about MediTrust’s potential to use technology to help patients suffering from rare diseases.

In May, the company launched its Kangfu Clover Rare Disease Center, which connects treatment providers with Chinese patients suffering from rare illnesses.

Currency converted from Chinese yuan to US dollar: US$1 = 6.48 yuan.

This report was first published on KrAsia.