Qitan Technology Secures RMB 700 Million Series C Funding Led by Meituan, with HaoYue Capital as Exclusive Financial Advisor

VCBeat has learned that Qitan Technology Ltd., Chengdu (hereinafter referred to as “QitanTech”) recently announced the completion of its C-round financing amounting to RMB 700 million. This round was led by Meituan, with continued additional investments from the Capital Big Health Fund managed by Huagai Capital and Boyuan Capital. Haoyue Capital served as the exclusive financial advisor for this financing round.

It is reported that this is the largest financing deal in the life sciences sector on China’s primary market this year. Founded in 2016, QitanTech is the first company in China to independently develop a nanopore gene sequencer and pioneer its commercialization. Its solid technological accumulation, diverse product portfolio, and leading commercialization progress have consistently attracted investor attention.

QitanTech stated that following this round of financing, the company will closely align with market demands, continuously refine its product portfolio, and accelerate the launch of medium- and high-throughput sequencing platforms. Meanwhile, it will expand into more diverse application scenarios, intensify market development efforts, and broaden its commercial footprint.

According to Xie Dan, co-founder of QitanTech, as a pioneer in domestic nanopore sequencing technology, the company’s development can be described as “crossing the river by feeling the stones.” In the first few years, it focused intently on technological R&D, navigating through the “no-man’s-land of scientific research,” while in the past two years, it has been advancing into the “no-man’s-land of mass production.”

Developing gene sequencers is difficult, but mass-producing them is even more challenging—a consensus within the industry. “Mass production of a gene sequencer requires solving not only the problem of manufacturing high-precision, cutting-edge components, but also integrating all these components into a precision instrument that operates stably, offers high reproducibility, and can be produced at scale. This tests a company’s comprehensive capabilities,” said the head of the production department at QitanTech.

Achieving this goal hinges on talent. The research, development, and mass production of nanopore gene sequencers span multiple specialized disciplines, including protein engineering, fluidic chips, electronic circuits, and algorithms. In China, there is a severe shortage of professionals with experience in industrialization. To address this challenge, QitanTech has assembled multidisciplinary talent and implemented an independent training program, fostering continuous integration through R&D and mass-production testing practices. This approach has ultimately built a team with robust industrialization capabilities and experience. Currently, QitanTech employs over 270 people, more than 75% of whom are engaged in technical R&D, and over half hold master’s or doctoral degrees.

In addition to its talent reserve advantages, QitanTech has made significant efforts in infrastructure development. With a total investment of nearly RMB 200 million and a construction period of over half a year, QitanTech has established China’s first production base for nanopore gene sequencers in the Chengdu Tianfu International Bio-Town. The facility has an annual production capacity of 2,000 sequencers, along with 1 million sets of supporting diagnostic reagents and chips.

2022 marked the first year of QitanTech’s commercialization. Xie Dan stated that the driving force behind the development of the gene sequencing industry has shifted from upstream technological breakthroughs to industrialization capabilities. Only by undergoing market validation and testing can technological R&D truly unleash real-world productivity.

Since commercialization began, QitanTech has implemented a multi-pronged strategy across the organization, continuously increasing investment in talent acquisition, team integration, market expansion, and product iteration to ensure the smooth advancement of its commercial operations. It is reported that the Qitan QNome sequencing platform is currently used by over 100 institutional clients, including leading domestic research institutes, universities, hospitals, and centers for disease control and prevention. Application areas encompass pathogen research, prevention and control of animal and plant diseases, molecular breeding, forensic science, and public health epidemic prevention.

During the commercialization process, supply chains and patents are the areas most vulnerable to being constrained by foreign companies. Therefore, QitanTech is committed to building a fully domestic supply chain. For its core biological chips, which represent the highest level of technological sophistication, QitanTech has chosen the most challenging path by independently developing and manufacturing every component, from the chip substrate to the coated nanopores. Meanwhile, for other components, QitanTech has adhered from the outset to maximizing the use of domestically sourced raw materials and production equipment. Currently, QitanTech has achieved over 95% localization of its supply chain.

In terms of patents, QitanTech has broken through overseas patent barriers. It holds fully independent intellectual property rights in core technologies such as porins, speed-control proteins, fluidic chips, electronic circuits, and algorithms, establishing a comprehensive domestic and international patent portfolio. The company has accumulated over 200 intellectual property achievements, including more than 100 invention patents.

According to BCC Research, the global gene sequencing market size was approximately $15.722 billion in 2021, with the Chinese market accounting for $1.59 billion. The Chinese gene sequencing market is projected to grow to $4.235 billion by 2026, representing a compound annual growth rate (CAGR) of approximately 21.6%. Within this industry chain, upstream equipment and consumables constitute the most core segment with the strongest bargaining power. According to Markets and Markets, the global market size for gene sequencing equipment and consumables was approximately $5.816 billion in 2021, with a CAGR of 17.4% from 2021 to 2030. In China, the market size for gene sequencing equipment and consumables was approximately RMB 6.514 billion in 2021, with a CAGR of 18.7% from 2021 to 2030.

Not only is the market outlook promising, but national policy support and guidance are also intensifying. In May 2022, the National Development and Reform Commission issued the "14th Five-Year Plan for Bioeconomy Development," which emphasized accelerating the development of high-throughput gene sequencing technologies and promoting innovation in next-generation sequencing technologies characterized by single-molecule sequencing. Since then, the research and development of next-generation gene sequencers has been elevated to a national strategic level.

With the innovative development of gene sequencing technologies and the advent of the era of precision medicine, gene sequencing has become a key cornerstone supporting frontier life sciences research and safeguarding public health. To better meet the growing market demand, Dan Xie stated that QitanTech will launch a mid-throughput sequencing platform and multiple complementary products in 2023, providing customers with higher-quality sequencing solutions.

Dr. Hu Geng, Co-founder & Chairman of QitanTechIt stated that the company successfully completed this round of financing, benefiting from rapid market expansion and a leading commercialization process. In 2022, the company continued to increase its R&D investment, improved the full-chain solution for nanopore gene sequencing, actively expanded the market application space for the QNome sequencing platform, achieved multi-faceted success in its commercialization strategy, and served over one hundred institutions. Moving forward, QitanTech will intensify its commercialization efforts, continue to leverage the advantages of nanopore sequencing technology, enrich and iterate its product offerings, constantly explore new application scenarios, and continue to lead the domestic nanopore sequencing industry in creating greater tangible productivity, thereby safeguarding human health.

"Meituan"It was stated that in the life sciences sector, the commercialization of key core technologies is of significant importance, as it can fully transform innovative technologies into long-term social value. Gene sequencing technology is one of the core technologies for exploring the frontiers of life sciences. The gene sequencing market is undergoing rapid development and iterative innovation. Enterprises that can independently master core technologies and rapidly bring them to market undoubtedly possess broad prospects for growth. Among domestic nanopore sequencing platforms, QitanTech is at the forefront of commercialization. We look forward to serving more institutions and reaching broader populations in the future, making gene sequencing technology accessible to the public and benefiting human health.

Mr. Zeng Zhiqiang, Managing Partner of Huagai Medical FundHuaGai Capital stated that it has long focused on genuine domestic technological and application innovations in the life sciences sector. Gene sequencing, as a core infrastructure for deciphering the code of life, represents one of the fields with the greatest potential for explosive growth. As a leading enterprise in nanopore sequencing, QitanTech achieves high-level interdisciplinary integration, continuously delivering original technological breakthroughs while possessing strong industrialization and commercialization capabilities. This makes the widespread adoption of sequencing technologies with longer read lengths, higher accuracy, and lower costs possible. HuaGai Capital remains highly optimistic about QitanTech and will continue to support the company, looking forward to QitanTech seizing the momentum to open new frontiers and consistently lead industry development.

Mr. Li Han, Vice President of Investment at Boyuan CapitalBoYuan Capital has expressed optimism about the broad application prospects and domestic substitution trends of life science tools across research, clinical, pharmaceutical, and other sectors. The firm has already invested in multiple life science tool companies, including QitanTech, Hanchen Guangyi, Xunyin Biology, Yuce Biology, and Huapu Keyi. As an existing shareholder, we are delighted to see QitanTech, under the leadership of its outstanding team, overcome R&D and production challenges, thereby gaining significant customer recognition in research, clinical practice, disease control, and forensic applications. It has become the first company in China to achieve commercial deployment of nanopore sequencing. We believe that the company will continue to exert strong efforts in innovative product development, clinical registration, and commercial promotion, leading the nanopore gene sequencing sector from all angles and contributing substantial value to China’s life sciences and precision medicine industries. BoYuan Capital will continue to support the company’s development and accompany excellent enterprises in their growth journey.

Mr. Ding Yameng, Founding Managing Partner and Chief Operating Officer of Haoyue CapitalHaoyue Capital stated that it was honored to serve as the exclusive financial advisor for QitanTech’s current round of financing, assisting the company in successfully closing the round. As a global leader in nanopore sequencing and life sciences platform technologies, QitanTech possesses core proprietary technologies for domestically produced nanopore sequencing. Being the first Chinese and second global manufacturer of nanopore sequencers, its independently developed QNome sequencing platform has achieved early commercialization and gained widespread recognition from a broad customer base, including centers for disease control and prevention, judicial authorities, research institutions, clinical facilities, and downstream application vendors. The founding team’s sustained innovation capabilities and efficient execution have been fully recognized by both existing and new shareholders. We believe that with capital support, QitanTech will accelerate its commercialization process, lead the future development of global nanopore sequencing technology, and continue to thrive.

QitanTech, founded in 2016, is dedicated to the independent R&D, manufacturing, and application development of nanopore gene sequencers along with their supporting chips and reagents. It is the first enterprise in China to fully master nanopore gene sequencing technology and commercialize it. In December 2021, QitanTech launched QNome-3841, the first commercially available nanopore gene sequencer in China, ushering in an era of domestically produced nanopore gene sequencing. In 2022, QitanTech advanced its commercialization efforts, continuously improving its end-to-end solutions for nanopore gene sequencing and actively expanding into new application scenarios. Currently, the number of institutions it serves has exceeded one hundred.

Meituan is a technology-driven retail company that fulfills its corporate mission of “helping people eat better and live better” through its “Retail + Technology” strategy. Since its establishment in March 2010, Meituan has continuously promoted the digital transformation of both service retail and product retail on the demand and supply sides, working closely with its extensive network of partners to deliver high-quality services to consumers. On September 20, 2018, Meituan was listed on the Hong Kong Stock Exchange.

Huagai Capital, established in 2012, is a private equity investment firm co-founded by professionals from renowned domestic and international investment institutions. With the vision of “becoming the most trusted capital partner for entrepreneurs and investors,” the company focuses on private equity investments in healthcare and technology, dedicated to fostering the growth of small and medium-sized enterprises into industry leaders. Currently, the firm manages approximately RMB 20 billion in assets, with 26 of its portfolio companies having gone public.

BioTrack Capital, established in 2017, is a specialized investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. Currently, BioTrack Capital manages two RMB funds and two USD funds, with total assets under management exceeding RMB 7 billion. More than just an investor, BioTrack Capital serves as a long-term partner to entrepreneurs. Since its inception, the firm has remained committed to an entrepreneur-centric approach, providing sustained support and active empowerment to exceptional founders in the healthcare sector, fostering an industry ecosystem, and cultivating the next generation of leading enterprises in China’s healthcare industry.

Haoyue Capital, established in January 2014, is a leading industry-focused investment bank in China specializing in the healthcare sector. Headquartered in Shanghai, the firm maintains regional offices in Beijing and Shenzhen. Committed to empowering clients through capital and research-driven insights, Haoyue Capital facilitates the successful connection of outstanding Chinese healthcare enterprises with capital markets, thereby creating value-added benefits for its clients. The partnership team comprises senior investment bankers with extensive experience in China’s healthcare sector, supported by a professional team of over 70 members. Haoyue Capital closely monitors dynamics and trends in the healthcare investment market, with its research and transaction coverage spanning multiple sub-sectors, including innovative pharmaceuticals, innovative medical devices, IVD and life sciences, health services, and smart healthcare. In 2021, Haoyue Capital completed more than 50 complex transactions involving private equity financing, mergers and acquisitions, and spin-offs of listed companies, with a total transaction value amounting to tens of billions of RMB, securing a leading position across various healthcare sub-sectors.