Xushui Interconnect Completes Tens of Millions of RMB Series A Funding to Advance High-Quality Hospital Development and Scales Solutions Across Over 1,000 Hospitals

VCBeat learned at the earliest opportunity,Aquiferre (hereinafter referred to as “Aquiferre”) has recently completed a Series A financing round worth tens of millions of yuan, led by Huimei Capital, with follow-on investment from Yuanyi Capital, the lead investor in its pre-Series A round. Probes Capital served as the exclusive financial advisor for this round.The proceeds from this round of financing will be used to drive the company’s R&D in AIoT-enabled medical devices and digital applications, accelerating the commercial deployment of related innovations among hospital clients.

Aquiferre, established in 2016, is a deep-tech company specializing in AIoT applications for medical devices. Leveraging its independently developed digital twin technology, the company drives the intelligent management transformation of medical equipment. It builds standardized digital application platforms for medical devices at Grade A tertiary hospitals, utilizing real-world data to facilitate the implementation of smart hospital management and support high-quality, connotative development.

In a relatively rational capital market, Aquiferre has successfully completed a new round of financing, underscoring its industry-leading position driven by genuine market demand.

As healthcare reform deepens, public hospitals face two major challenges: achieving high-quality development and ensuring sustainable survival. Consequently, hospital management philosophies are shifting from scale-driven revenue growth to lean, efficiency-oriented operations. Practice has demonstrated that digitalization has become an effective tool for enhancing the efficiency and quality of the healthcare industry.

As the second most critical productive resource in hospitals after physicians, medical equipment holds immense potential to drive innovative development when its value is maximized. Therefore, digital operations of medical equipment are essential for achieving structural efficiency gains in hospitals.

Since its inception, Aquiferre has been dedicated to the AIoT sector for medical devices, leveraging its independently developedLeveraging three core AIoT technologies—data heterogeneity, edge computing, and digital twins—we have launched a digital operations management platform for medical equipment tailored to healthcare institutions, as well as a cloud-based digital operation and maintenance platform for medical equipment designed for after-sales service providers.providing an integrated platform solution for remote monitoring and early warning of medical devices, standardized quality control and performance management, configuration optimization and procurement decision-making, as well as big data analysis and research translation;Collaborated with dozens of Top 100 Grade A tertiary hospitals and over a thousand primary care hospitals, with a leading market position.

Over the past year, Aquiferre has continuously refined its technologies and products, achieving breakthroughs in areas such as industry standards. The device categories supported by Aquiferre’s AIoT technologyExpanded from radiology and ultrasound to life support, endoscopy, and small medical devices., capable of meeting the needs of healthcare institutions for hospital-wide, full-category digital operations of medical equipment.

At the application level, Aquiferre has expanded from equipment department applications to multi-scenario applications for hospital directors, the finance department, the information technology department, the medical affairs department, and various clinical support departments. Meanwhile, Aquiferre is also leveraging edge computing,Added a brand-new multi-party secure computation algorithm, to provide better data standardization services while fully ensuring information security.

Furthermore, Aquiferre has jointly conducted research on multiple industry standards with relevant authorities such as the National Health Commission and leading hospitals in the sector. Benefiting from its high standards for technology and products, Aquiferre’s number of hospital contract clients doubled year-over-year, while the number of repeat-purchase clients tripled.

Since the second half of 2021, the once-booming healthcare investment market has cooled rapidly. On one hand, it has been impacted by multiple external factors, including a complex international environment, the normalization of the pandemic, and a global economic downturn. On the other hand, issues such as intense homogeneous competition in domestic innovation, compressed profit margins due to centralized procurement, and valuation bubbles have come to the forefront, affecting capital’s expectations for the market.

“However, long-term positive drivers—such as population aging, rising per capita disposable income, and individuals’ growing demand for higher-quality healthcare—have not changed significantly, so demand on the consumer side of the entire healthcare industry remains strong,” Aquiferre believes.Over the coming extended period, efficiency gains on the supply side will inevitably create sustained momentum for the development of the entire industry.In response, Aquiferre will continue to focus on leveraging digital technologies to drive structural efficiency gains across the industry, centering on hospitals to achieve digital transformation of the medical equipment supply chain.

Following the completion of this funding round, Aquiferre will prioritize the commercialization of its products, aiming to improve the conversion rate of trial contracts and the repurchase rate for phase-two deployments. Meanwhile, the company will further expand its portfolio of department-level digital applications, shifting the focus of operational efficiency improvements in healthcare institutions from the management level down to the execution level.

HuiMei Capital’s lead investment in Aquiferre reflects its confidence in the significant potential of digitalization to enhance hospital operational efficiency and reduce operating costs.Huimei Capital stated that Aquiferre’s in-hospital smart IoT products, built upon foundational device-level data, closely align with hospital needs and effectively address the challenges of high operational and maintenance costs and low equipment utilization rates. Aquiferre’s products have seen rapid market adoption and gained widespread recognition, establishing the company as a “leader” in this field. “Throughout our interactions with the team, we were deeply impressed by their drive and learning agility. This is a grounded yet passionate team, and we highly recognize their cohesion and centripetal force.”

Huimei Capital is committed to supporting companies’ long-term growth by providing a comprehensive “toolbox” of post-investment value-added services. Furthermore, companies within Huimei Capital’s robust healthcare ecosystem will serve as strong allies and partners for its portfolio companies. These include Huimei Technology, the leading national provider of Clinical Decision Support Systems (CDSS), and Huimei Digital Science, the leader in omni-channel digital marketing for pharmaceutical companies. Moving forward, Huimei Capital will fully facilitate deeper strategic collaboration between its portfolio companies and partners within the Huimei ecosystem.

As the lead investor in Aquiferre’s pre-A round, Yuan Yi Capital chose to make a disproportionately large additional investment in its Series A round.The underlying logic is that Yuanyi Capital firmly believes in the enterprise value of Aquiferre, as well as the vast market potential in the digital application of medical equipment. Yuanyi Capital holds that Aquiferre has pioneered the application of industrial internet technology in the healthcare sector, providing critical infrastructure for hospital digitalization and gaining continuous recognition from top-tier hospitals. The team boasts strong industry experience, learning agility, and execution capabilities. Through sustained technological and business model innovation, it continuously launches new products and applications, helping hospitals address core pain points during their management transformation.

Going forward, Yuanyi Capital will continue to empower Aquiferre by leveraging its extensive resources in the field of medical digitalization, particularly in terms of development strategy and key industry resources.

Huimei Capital (HM CAPITAL) is a specialized fund focused on healthcare investments. Leveraging the resource ecosystem advantages of Huimei Medical Group and other partners, it invests in the healthcare ecosystem through a multi-dimensional, cross-regional, and comprehensive approach. Committed to building a professional investment platform with international vision and local execution capabilities, Huimei Capital employs a dual-currency, multi-strategy fund model to accelerate the growth of early-stage and growth-stage healthcare companies.

Huimei works closely with rapidly growing healthcare companies, providing comprehensive strategic value-added services and systematic empowerment through a one-stop enablement platform from a global perspective. It shares Huimei Capital’s global business network and resource ecosystem with outstanding entrepreneurs.

Yuanyi Capital, established in 2016, is an early-stage venture capital fund focused on the digital health technology sector. It targets early-stage companies in medical devices and equipment with core technologies and innovative business models, precision diagnostics, mobile healthcare and services, and health insurance technology firms. Recent investments include Medbank Health (commercial health insurance technology), Shukun Technology (AI-based medical imaging), Xunshi Technology (digital dental solutions), Mingyi Zhonghe (primary care-focused healthcare), Beideng Medical (a B2B trading platform for medical devices), and Basecare Medical (early cancer screening based on gene sequencing).