Cun Health Secures Tens of Millions in Series B+ Funding from Qifu Capital to Accelerate Digital Infrastructure in Pharmaceutical Distribution

VCBeat has learned at the earliest opportunity,On February 16, 2023, focused on membership management services for chain pharmacies,Wuhan Haiyun Health Technology Co., Ltd. (hereinafter referred to as "VCBeat Health”）Completed byQifu CapitalExclusively InvestedTens of millions in Series B+ roundFinancing. The funds raised will be used for in-depth research and expansion of digital application scenarios in the pharmaceutical industry.

Cun Health, founded in 2013 and headquartered in Wuhan East Lake High-Tech Development Zone (“China Optics Valley”), is a technology (AI)-driven digital service provider for the pharmaceutical and healthcare industry. It is committed to building a patient-centric digital bridge for the industry by meeting pharmacies’ growing digitalization needs and enhancing members’ medication purchasing experience, thereby improving the efficiency of the entire big health service chain.

The company has long prioritized R&D in big data and the development of professional capabilities in pharmaceutical services. In recent years, it has collaborated with Wuhan University of Science and Technology to jointly develop technological projects in big data AI and intelligent pharmaceutical services, continuously enhancing its technological prowess. The company has successively been recognized as a Wuhan High-Tech Enterprise, a Big Data Enterprise, and a Gazelle Enterprise, and has obtained Level 3 Certification for National Network Information Security.

With the continuous penetration and influence of “Internet Plus” and the COVID-19 pandemic on the pharmaceutical industry, the sector is undergoing transformation and upgrading. Value reshaping is taking place, accompanied by the emergence of new technologies, applications, and business models. In an era marked by soaring labor costs and shifting consumer habits, digital transformation has become an inevitable trend for the pharmaceutical industry.

For pharmaceutical companies, the primary focus of digital transformation has been on internal digitization, such as the adoption and utilization of ERP and MES systems. However, these systems primarily address cost control; achieving sales growth requires sustained efforts in marketing. Against the backdrop of the prevailing trend of prescription outflow, digital terminal marketing will become an essential strategy for pharmaceutical companies to drive volume and revenue growth.

For pharmacies, an increasing share of pharmaceutical consumption is shifting to online channels, making the integrated online-offline new retail model an inevitable trend in the industry’s development. Only by achieving digitalized membership management and integrating online and offline membership operations can pharmacies fully track consumers’ cross-channel shopping journeys, enable precise marketing, and deliver a seamless, integrated online-offline membership service experience.

To address the marketing management challenges faced by pharmaceutical companies and pharmacies, Cun Jiankang leverages its pharmacy CRM system to enable integrated online-to-offline member operations, thereby facilitating precise member services for pharmacies. Through its "Cun Jiankang" DTP Patient Management System, it assists DTP (Direct-to-Patient) pharmacies and dual-channel pharmacies in establishing standard operating procedures (SOPs) for managing and serving patients with severe chronic diseases. Furthermore, via the "Cun Jiankang" Supply-Retail Connect System, it achieves efficient resource linkage between pharmaceutical companies and pharmacies, ultimately building a patient-centric collaborative health management platform.

From an initial team of three to nearly 200 employees today; from a single city to coverage across 280 prefecture-level cities in China, serving over 110,000 pharmacies. Over the past decade, Cun Jiankang has grown from humble beginnings into a substantial enterprise.

Cun Jiankang has established a tripartite empowerment system integrating patients, channels, and pharmaceuticals. Its pharmacy network covers 99% of China’s regions, making it an industry-leading provider of membership management services.

Leveraging continuously expanding massive real-world data, iteratively enhanced data analytics capabilities, and channel influence, Cun Jiankang will provide pharmacies with advanced private-domain operational solutions and offer pharmaceutical companies precise marketing strategies to drive sales volume growth.

Selected Partners of VCBeat

For this financing round, Li Yun, Chairman of Cun Jiankangstated: “Going forward, the company will continue to leverage pharmaceutical care services, chronic disease management, and prescription management as key drivers. Centered on patient profiling and powered by big data algorithms, it will build a resource-linking platform for patient services to provide deep empowerment across the upstream and downstream of the industry.”

Mr. Fu Zhekuan, Chairman and Founding Partner of Qifu CapitalHe stated, “In recent years, the Chinese government has demonstrated substantial commitment to encouraging and promoting industrial digitalization. As a big data and technology-driven internet enterprise, ‘Cun Jiankang’ regards data as a key factor, centers on value release and shared symbiosis, and takes data empowerment as its main thread. This positions the company to seize significant opportunities and possibilities in driving the comprehensive digital upgrading, transformation, and restructuring of all factors across the upstream and downstream segments of the industrial chain. In the future, no business model or enterprise will operate as an isolated entity; rather, each must function within a broader ecosystem, capable of interacting with its respective links. Therefore, enterprises need such digital tools not only to unlock their own value but also to attract societal value for their benefit. The core focus is data empowerment, ultimately enabling the empowerment of all factors throughout the entire industrial process or across the whole industry chain. ‘Cun Jiankang’ already possesses the foundational capabilities and inherent DNA for this. By leveraging its business middle platform and data middle platform, it can integrate internal resources and connect with external partners, thereby achieving connectivity across the entire industry ecosystem. In this regard, ‘Cun Jiankang’ is well-positioned to make significant contributions.”

Qifu Capital, fully named Shenzhen Qifu Interconnected Investment Management Co., Ltd., is a professional fund management company specializing in private equity investment. It was initiated and established by senior professionals in the domestic venture capital sector, outstanding listed companies, and private entrepreneurs. Primarily managing venture capital (VC) funds, the firm focuses on industries such as TMT, modern services, new materials, and healthcare. Currently, it manages assets totaling RMB 6 billion and has invested in over 200 projects.