Yiya Dental Group Secures Hundreds of Millions in Funding and Acquires Yingbo Dental, Files for IPO

VCBeat has learned that on February 17, Eya Dental Group announced the completion of an exclusive investment worth hundreds of millions of yuan from Source Code Capital, and concurrently completed the strategic acquisition of Shanghai Xuhai Yingbo Group. As a result, Eya Dental has been upgraded to Eya Yingbo Group. Following this round of financing, Eya Yingbo Group will continue to deepen its presence in the primary dental healthcare services market, promote inclusive healthcare, and enable more people to access high-quality dental care.

The oral care sector has long been a hotbed for capital investment. A comprehensive review of the current state of the dental industry reveals exceptionally broad growth prospects. First, China’s large population base, high prevalence of dental diseases, and growing awareness of oral health are key drivers. Data shows that China records approximately 250 million dental visits annually. With the overall rise in consumption levels among urban residents, consumer-driven healthcare is experiencing significant growth, making the oral care sector a multi-billion-dollar market.

In 2003, Eya Group (now Eya Inbo Group) was established in Enshi, Hubei Province. Over the past two decades, adhering to high-quality service and high-standard medical care, the company has achieved remarkable success in the dental sector, earning honors such as being among the first batch of national five-star outpatient clinics for industry credit and capability, a member unit of the Medical Consortium with Wuhan University Stomatological Hospital, and one of Hurun Research Institute’s Top 10 Private Chain Dental Medical Service Providers in China in 2020. Eya Group has consistently received strong support from the Enshi Municipal Government. The enterprise has also strictly standardized its financial, tax, and operational processes, and has been selected as a “Golden Seed” enterprise on Hubei Province’s reserve list for IPOs.

Upon the completion of this financing and M&A transaction, Eya Yingbo Group will continue to uphold its strategic commitment to serving grassroots communities, expand its presence across a broader urban network, and build a brand operation system characterized by modern service concepts, robust brand resources, and synergistic coordination in dental diagnosis and treatment. The company’s dental business now covers 27 cities and counties across eight provinces (including municipalities), namely Shanghai, Beijing, Hubei, Hunan, Jiangsu, Zhejiang, Sichuan, and Chongqing, with more than 50 dental institutions, positioning its scale among the top in China.

Regarding the future, Yan Feng, Chairman of Eya Dental, stated: "Shanghai Xuhai Yingbo Group, the target of this acquisition, is also a cross-regional chain enterprise dedicated to inclusive healthcare, aligning closely with our philosophy. Moving forward, we will integrate the core strengths of both companies, firmly establish our presence in first-tier cities, deepen our roots in grassroots markets, and advance our strategic development of inclusive healthcare. By extending medical resources and management expertise from Beijing and Shanghai to broader grassroots markets, we aim to ensure that residents in these areas also have access to high-quality dental services. Currently, the Eya Yingbo Group has established a footprint in counties, county-level cities, and prefecture-level cities, demonstrating our commitment to serving grassroots communities and promoting inclusive healthcare for the general public. In terms of financing, we are pleased to welcome FountainVest Partners as an investor. As an internationally renowned fund focused on long-term value and committed to accompanying enterprises through sustained growth, FountainVest’s deep expertise in investment and post-investment empowerment will create significant value for the future development of the Eya Yingbo Group."

FountainVest Partners stated: "Congratulations to Eya Inbo Dental Group on the completion of its financing and M&A transactions. With the continued popularization of oral health awareness and the impetus of relevant national policies, we have observed that dental healthcare is gradually transitioning from typical consumer-driven medical services to inclusive healthcare, thereby benefiting a broader patient base with consumption needs. This transformation also imposes higher requirements on dental healthcare institutions in terms of technical expertise, service capabilities, and operational efficiency. Having deeply cultivated the dental services sector for two decades, Eya Inbo’s founders have remained true to their original aspiration of 'enabling more people to access high-quality dental care.' By steadily advancing and continuously iterating in both medical technology and business management, Eya Inbo is well-positioned to become a leading national brand in China’s inclusive dental market. FountainVest’s RMB Fund is delighted to partner with Eya Inbo and contribute to the development of inclusive dental healthcare in China."

FountainVest Partners is a leading Asia-based, market-oriented, and independently operated private equity investment firm. FountainVest focuses on long-term investments in industry-leading companies and works closely with management teams to provide support in strategy, operations, finance, and capital markets, thereby driving business growth and creating exceptional value. The firm has completed a series of successful landmark investments across Asia, Europe, and the United States, with key focus areas including consumer, media and technology, healthcare, industrials, and enterprise services. FountainVest’s investors include globally leading sovereign wealth funds, public pension funds, and other institutional investors.