Leyue Health Completes Tens of Millions of RMB Series B+ Financing to Build Integrated 'Healthcare + Insurance' Infrastructure

Recently, Leyue Health, a leading enterprise in the integrated development of “Internet healthcare + insurance technology” in China, announced the completion of its Series B+ financing round, raising tens of millions of yuan. The round was led by CE Innovation Capital, Shenzhen Capital Group (SCGC), and Jianxing Medical Fund, with Tongchuang Shujin Fund participating as a follow-on investor.

Founded in 2015, Leyue Health is dedicated to breaking down information silos between healthcare and insurance, and building the infrastructure for the integrated development of “healthcare + insurance.” The company has established China’s first provincial-level commercial insurance convenience service platform and the first direct billing platform for commercial insurance at a Grade A tertiary hospital. It pioneered online claims services such as expedited commercial insurance claims and direct billing, which have been promoted and applied in more than ten provinces and municipalities across China, connecting hundreds of Grade A tertiary hospitals with over 40 large and medium-sized health insurance companies.

Ms. Fu Xinhua, President of Leyue Health, stated that following this round of financing, the company will further consolidate its leading position in the niche sector of “Internet Healthcare + InsurTech.” By continuing to build the infrastructure for the integrated development of “Healthcare + Insurance,” the company aims to transform health insurance from a mere medical payment mechanism into a hybrid model combining medical payment with medical services. This transformation will enable commercial health insurance to play a more significant role on both the hospital and patient ends, supporting high-quality hospital development and implementing the “Healthy China” strategy’s shift from being “disease-centered” to “people’s health-centered,” thereby making greater contributions to building a comprehensive, multi-tiered medical security system for residents.

Commercial health insurance is a vital component of China’s multi-tiered healthcare security system, playing an increasingly significant role in residents’ healthcare coverage. According to statistics from the China Banking and Insurance Regulatory Commission (CBIRC), in the first ten months of 2021, nationwide claims payments for health insurance reached RMB 335.1 billion, surpassing those for life insurance for the first time and making it the category with the highest claims expenditure among personal insurance products.

Shenzhen Capital Group holds that, although the health insurance market is expanding rapidly, outdated risk control measures in traditional insurance underwriting and cumbersome claims processes have resulted in poor experiences for policyholders and claimants. This has significantly dampened residents’ enthusiasm for enrollment, preventing commercial health insurance from fully realizing its protective potential. Since 2018, agencies including the National Health Commission, the National Healthcare Security Administration, and the China Banking and Insurance Regulatory Commission have issued multiple directives calling for necessary information sharing among basic medical insurance information systems, public healthcare institutions’ high-quality development information systems, medical assistance information systems, and commercial health insurance information systems—while ensuring data security. These efforts aim to promote the widespread adoption of convenient, people-centric services such as “one-stop” settlement for commercial health insurance.

Against this backdrop, as a leader in its niche sector, Leyue Health has actively explored the integrated development path of “healthcare + insurance” under the guidance of health commissions in more than ten provinces and municipalities across China. By building interconnected and shared infrastructure, it has established multiple convenient service platforms for the integrated development of “healthcare + insurance,” achieving a win-win outcome for the government, hospitals, insurers, and patients. “Leyue Health’s big data risk control and direct reimbursement products align with insurers’ demands for precise risk management, cost reduction and efficiency enhancement, and differentiated competition. From a business logic perspective, they also meet the needs of core stakeholders such as health commissions, hospitals, and insurance companies, particularly addressing the long-standing challenges faced by the public in the process of seeking medical care and filing insurance claims,” stated Shenzhen Capital Group.

While building the infrastructure for the integrated development of “healthcare + insurance,” Leyue Health is also actively promoting the digitalization and intelligent transformation of the health insurance industry. By providing end-to-end TPA services, it helps insurance companies achieve digital transformation in multiple areas, including risk control, claims processing, and health management.

Leyue Health’s “Dual-Core Risk Control” model, built on technologies such as big data and medical semantic recognition, has been adopted by more than 40 large and mid-sized health insurance companies, enabling intelligent and automated underwriting and claims adjudication. Meanwhile, Leyue Health is actively driving upgrades to insurance claims services. By leveraging intelligent underwriting and claims processing, it provides end-users with a “one-stop” smart claims service that is integrated with hospital settlement workflows, thereby enabling commercial insurance patients to complete “single-window,” “one-stop” settlements after receiving medical care at hospitals.

“Following this round of financing, Leyue Health will continue to pursue a dual-driven development model powered by health-tech and insurtech. There is natural complementarity between health-tech and insurtech; their integration represents an inevitable trend, and the prerequisite for steadily advancing this trend lies in digital infrastructure and interoperable data technologies. As an investment team focused on the global fintech sector, we are highly optimistic about Leyue’s core capabilities in data processing and technological innovation. By targeting large medical institutions as its entry point, the company has built significant scale advantages through years of accumulation. We look forward to seeing the company’s business reach new heights,” said Cui Zheng, Partner at CE Innovation Capital.

Cowin Capital was the sole investor in Leyue Health’s previous funding round. Zhang Xin, head of the Cowin Digital Finance Fund, stated that as a long-standing shareholder of Leyue Health, Cowin Capital has accompanied the company through the entire journey of building commercial insurance “one-stop” settlement solutions from scratch. Following this financing round, and building on its intelligent risk control scenario, the company will rapidly expand into the already validated scenario of in-hospital payment and settlement. Centered on the core theme of health insurance payments, and leveraging healthcare institutions, Leyue Health aims to create and build more optional services for insurance companies. We remain bullish on this trillion-yuan market sector. In-hospital commercial insurance payment and settlement is a critical component in building China’s version of UnitedHealth Group. We look forward to Leyue Health continuing to leverage technology to facilitate the integrated development of China’s insurance and healthcare industries, thereby contributing to the improvement of the social security system.

Leyue Information Services (Shenzhen) Co., Ltd., established in 2015, is a leading enterprise in China at the intersection of HealthTech and InsurTech. The company is dedicated to building infrastructure for the integrated development of “healthcare + insurance,” breaking down information silos between the healthcare and insurance sectors, and providing health insurance users with end-to-end “healthcare + insurance” services. Leyue Health has facilitated collaborations between hundreds of Grade A tertiary hospitals across China and insurance companies, launching “one-stop” commercial insurance settlement services within hospitals. Meanwhile, Leyue Health provides intelligent underwriting and claims adjudication, smart claims processing, and health management services to more than 40 large and mid-sized health insurance providers. Moving forward, the company will further deepen and broaden connectivity between the healthcare and insurance ends, creating a Chinese-characteristic model for the integrated development of “medical services + insurance payment,” making insurance simpler and health more accessible.

CE Innovation Capital (“CEIC”), established in February 2016, primarily invests in companies across global fintech, frontier technologies, enterprise services, new consumer platforms, and digital health. The fund was ranked among the “Top 9 Global Investors in Fintech Unicorns” by CB Insights and listed as one of the “Most Active Corporate Venture Capital Teams” in the 2019 Fintech Almanac compiled by Financial Technology Partners, a fintech-focused investment bank. Nominated for “Best Fintech Equity Investment Fund” at the 6th LendIt USA Summit, the fund was also recognized in 2020 as one of the “Top 10 Best Investment Institutions in China’s Fintech Industry” by ChinaVenture, and was named “Best Fintech Investment Institution of the Year” in 2021 by The Asset, a leading Asian media outlet.

Shenzhen Capital Group Co., Ltd. was established in 1999 and is managed by Shenzhen Capital Group Co., Ltd. SCG primarily invests in small and medium-sized enterprises, independent innovative high-tech enterprises, and emerging industry enterprises, covering industries such as information technology, intelligent manufacturing, internet, consumer goods/modern services, biotechnology/health, new materials, and new energy/environmental protection and energy conservation, spanning the entire life cycle of enterprises. As of November 30, 2021, SCG ranked first in China's venture capital industry in terms of the number of invested companies and listed companies: it has invested in 1,369 projects with a cumulative investment amount of approximately RMB 77.3 billion. In the past five years (2016-2020), SCG was ranked first among domestic venture capital institutions in the Zero2IPO China Venture Capital Institution Annual Selection, including being ranked first overall among both domestic and foreign-funded venture capital firms in 2017.

The Beijing Jianxing Medical and Health Industry Equity Investment Fund is a professional equity investment fund actively managed by CCB International and operationally supported by the New Airport City Fund. The fund was jointly established under the organization of the Beijing Municipal Commission of Economy and Information Technology and the Daxing District People’s Government, with capital contributions from the Beijing High-Precision Advanced Industry Development Fund and the Xingchan Fund Management Center. The fund focuses primarily on high-quality growth-stage projects in fields such as innovative drugs, high-end medical devices, and smart healthcare. Leveraging Beijing’s and Daxing District’s robust biomedical industry foundation, CCB International’s full-industry-chain financial service capabilities, and the investment team’s extensive fund management experience, the fund aims to facilitate the commercialization of biomedical technological achievements and promote the optimization and upgrading of the industrial structure.

Shenzhen Tongchuang Digital Finance Venture Capital Fund is a specialized private equity fund actively managed by Cowin Capital, focusing on the digital economy and fintech sectors. Established under the guidance and support of the Shenzhen Municipal Local Financial Supervision Administration, the fund has entered into a strategic partnership with the Shenzhen Fintech Association and is registered in the Shenzhen International Fintech City. Closely aligned with Shenzhen’s long-term strategic goal of building a global fintech hub, the fund has attracted capital participation from renowned insurance companies, securities firms, and financial IT enterprises. The fund primarily targets high-quality growth-stage projects in the digital economy and fintech domains. Leveraging Shenzhen’s and Futian District’s robust industrial foundation in the digital economy and fintech, Cowin Capital’s full-stage investment capabilities, and its investment team’s extensive fund management experience, the fund facilitates the practical integration of fintech and digital economy technologies with Shenzhen’s abundant financial application scenarios, thereby driving industrial digital transformation and upgrading.