Tiluo Medical Completes RMB 420 Million Series B Funding to Accelerate Production Expansion of Colored Contact Lenses

VCBeat has learned that Shanghai DEARER Medical Device Co., Ltd. (hereinafter referred to as “DEARER”) announced the recent completion of a RMB 420 million Series B capital increase. This round of financing was jointly invested by institutions including CPE Yuanfeng, Legend Capital, and Boying Capital. The funds will be used for the research and development and production expansion of Class III medical device colored contact lenses (commonly known as “cosmetic contact lenses”), in order to meet growing market demand.

DEARER serves as the headquarters of the group, with four wholly-owned subsidiaries and one controlled subsidiary: Jilin Realcon Contact Lens Co., Ltd., Suzhou Realcon Technology Co., Ltd., Suzhou Keluodi Trading Co., Ltd., Korea Foco Co., Ltd., and Xi’an Keshimei Optical Technology Co., Ltd. (hereinafter collectively referred to as “DEARER Group”). The DEARER Group is primarily engaged in the research and development, production, and sales of colored contact lenses.

With over a decade of R&D and manufacturing experience in the colored contact lens industry, DEARER holds multiple invention patents, including proprietary inner-surface coating technology. The company currently maintains a competitive advantage in the comprehensive capabilities for the design and production of colored contact lenses. DEARER remains committed to continuously increasing its innovation and investment in R&D, encompassing new material development and mold engineering, thereby achieving numerous research breakthroughs.

DEARER currently holds seven Class III medical device registration certificates, covering a full product line of contact lenses including daily, monthly, semi-annual, and annual disposables. This portfolio comprises one certificate for clear lenses and six for colored contact lenses. Furthermore, DEARER possesses exclusive industry registration certificates for seven-color and pearlescent colored lenses, allowing the company to maximize its design advantages. With the capacity to launch over 1,000 new designs each month and a design conversion rate as high as 30%, DEARER’s design capabilities are at the forefront in China.

DEARER Group currently serves customers across major online and offline new retail channels for colored contact lenses, maintaining strong partnerships with them. At present, the company’s production capacity cannot meet customer order volumes, and it is actively advancing expansion projects. This round of financing will be primarily allocated to new product development and production capacity expansion. Upon completion of the expansion project, the company anticipates a significant surge in sales revenue.

The REALKOKO brand stores under the DEARER Group are also rapidly expanding.

Peng Wei, project leader at CPE Yuanfeng, stated, “The colored contact lens industry aligns with the broader trends of consumption upgrading and the ‘beauty economy.’ The consumer base for colored contact lenses is expanding rapidly, and market demand is expected to maintain robust long-term growth. Beyond their consumer goods attributes, colored contact lenses are classified as Class III medical devices, resulting in high barriers to entry in the industry. Under the leadership of Mr. Jin, DEARER has leveraged years of industry experience to establish sophisticated manufacturing processes, trendsetting product design capabilities, and a continuously innovative R&D system. We are pleased to participate in this financing round for DEARER, supporting the company in launching new production capacity, accelerating new product development, and introducing more products that resonate deeply with customers and consumers.”

Zhou Quan, Managing Director at Legend Capital, stated: “Colored contact lenses and cosmetic contact lenses are medical products with consumer attributes. On one hand, as Class III medical devices, their quality is subject to strict approval and regulatory oversight, resulting in very high entry barriers and a limited number of manufacturers. On the other hand, as out-of-hospital, self-paid products featuring cosmetic benefits and high repurchase rates, their market size and commercialization speed can rival those of blockbuster consumer goods. We are highly optimistic about the long-term commercial value of this industry. As a domestic manufacturer of cosmetic contact lenses, DEARER holds comprehensive medical device registration certificates for such products and boasts a design team with over ten years of deep expertise in the sector. Leveraging its fully molded mass-production technology honed over many years and flexible, segmented production lines for customization, DEARER creates cosmetic contact lens products tailored to Asian market demands for downstream brand clients. Furthermore, it provides more user-friendly and customer-centric services compared to manufacturers in China’s Taiwan region and South Korea. In the future, DEARER is poised to continuously increase its market share in both the domestic and broader Asian markets, becoming a Chinese-made brand that inspires national pride.”

Chen Lei, Partner at Boying Capital, stated, “Ophthalmology has always been a key sector of focus for Boying Capital. In recent years, the demand for cosmetic contact lenses has grown rapidly, with substantial unmet market needs in China. Leveraging its strong R&D and design capabilities, DEARER’s team has mastered a production technology platform spanning from raw materials to finished products, establishing itself as a leading domestic enterprise in the cosmetic contact lens industry. Amid the broader trend of consumption upgrading, we remain firmly optimistic about the company’s future growth prospects.”

CPE Yuanfeng is an asset management institution with a global perspective and extensive experience in China. Dedicated to a long-term vision and value investment strategies, the firm focuses on providing innovative investment solutions for leading enterprises in four key sectors: Healthcare & Health, Consumer & Internet, Technology & Industry, and Software & Enterprise Services. Currently, the funds under management have earned the trust and support of over 200 institutional investors both domestically and internationally, with total assets under management exceeding RMB 100 billion. Over the past decade, the company’s core team has invested in more than 200 enterprises, accumulating profound industry insights and a broad resource network. By leveraging a robust investment research system and professional post-investment management capabilities, CPE Yuanfeng is committed to building long-term partnerships with its portfolio companies. The firm aims to facilitate their sustainable development, deliver substantial returns to investors, drive overall industry progress, and create positive social impact.

Boxing Capital is a venture capital firm dedicated to early-stage healthcare investments, founded by partners with extensive experience in healthcare industry investing. The firm currently manages funds totaling nearly RMB 1 billion, with key investments in over 30 innovative medical device and healthcare service companies possessing significant market potential. Many of these portfolio companies have grown into leaders within their respective niches, and the firm has successfully realized profitable exits from multiple projects. Boxing Capital’s limited partners include top-tier domestic fund-of-funds, healthcare entrepreneurs, and seasoned investors. Leveraging in-depth industry research, clear investment thesis, and comprehensive post-investment management capabilities, Boxing Capital has secured ongoing support from its investors and earned long-term respect from entrepreneurs, firmly establishing itself as a trusted long-term partner for leading Chinese investors and entrepreneurs.

Legend Capital is an independent professional investment firm under Legend Holdings. Established in April 2001, it was renamed from Legend Investment to Legend Capital in 2012. Its core business focuses on early-stage venture capital and growth-stage expansion investments, with total assets under management in USD and RMB funds exceeding RMB 60 billion. The firm primarily targets innovation and growth opportunities in China. As of 2021, Legend Capital had invested in over 500 companies, among which more than 80 have successfully listed or been quoted on domestic or overseas exchanges, and over 60 have exited through mergers and acquisitions.