Kedni Medical Secures Over RMB 100 Million in Series A+ Funding to Accelerate Regulatory Approval of Digital Therapeutics for Chronic Kidney Disease

VCBeat (WeChat ID: vcbeat) has learned that Beijing KIDNEYHEALTH Medical Technology Co., Ltd. (hereinafter referred to as “KIDNEYHEALTH”) announced the completion of its A+ round financing, exceeding RMB 100 million.Led by a renowned private equity investment firm and Yuzi Capital, with follow-on investments from medical AI leader Yidu Tech, Probe New Medical Fund, and existing shareholders Shunwei Capital and Kaifeng Venture Capital., Probe Capital served as the exclusive financial advisor.The proceeds from this round of financing will be primarily used to accelerate the clinical research of digital therapeutics for chronic diseases, as well as to expand the company’s team in subsequent stages.

Previously, KIDNEYHEALTH completed its angel, Pre-A, and Series A funding rounds in 2015, 2017, and 2019, respectively. Its investors include Shunwei Capital, Kaifeng Venture Capital, Shangshi Capital, and Zehou Capital. After several rounds of financing, KIDNEYHEALTH has raised a cumulative total of hundreds of millions of RMB.

Regarding the sustained recognition from investors, Chen Xuyong, founder of KIDNEYHEALTH, candidly attributed this achievement to the company’s unique chronic disease management solution. “Our approach aligns most closely with international standards for chronic disease management. KIDNEYHEALTH’s chronic disease management model has been fully validated and proven effective, delivering superior therapeutic outcomes and optimal patient adherence.” As a former clinician in the Department of Nephrology at Peking University First Hospital, Chen Xuyong possesses a profound understanding of the urgent clinical needs, pain points, and challenges associated with chronic disease management.

KIDNEYHEALTH, established in 2015, is a globally leading full-course management platform for chronic kidney disease (CKD). Focusing on out-of-hospital care scenarios, the platform addresses educational needs for both patients and physicians by providing accurate, reliable, cutting-edge, and compassionate CKD knowledge and information, thereby gradually transforming patient perceptions. In collaboration with an international team of nephrologists, the platform delivers comprehensive, 360-degree, cost-effective disease management to ensure patient safety outside the hospital setting. This approach helps slow the progression to uremia, enabling CKD patients to achieve better quality of life while living with the disease.

“Perhaps some chronic disease management approaches require ‘storytelling,’ but our chronic disease management has truly been implemented and effectively helped patients,” said Chen Xuyong proudly. Behind the realization of KIDNEYHEALTH’s chronic disease management solution lies the indispensable role of artificial intelligence (AI) technology. Empowered by AI and supported by online health coaches for chronic disease management, the solution can achieve a coverage ratio of 1:2000, meaning that one health coach can manage up to 2,000 patients.

What Is the Role of a Health Coach? It is well known that chronic disease management is a multidisciplinary, long-term collaborative process. For instance, managing diabetes requires the coordinated efforts of nurses, pharmacists, dietitians, exercise rehabilitation specialists, psychotherapists, and other professionals to jointly help and monitor patients in achieving effective long-term control of their condition. Similarly, such multidisciplinary collaboration is essential in managing other chronic diseases, which constitutes the foundational rationale for the emergence of health coaches.

Chen Xuyong, with a disciplinary background in mathematical modeling and a second-prize winner in an international mathematical modeling competition, constructed a multidisciplinary digital team model integrating nurses, pharmacists, dietitians, exercise rehabilitation therapists, and psychotherapists, recognizing the importance of these five roles in health management. To enhance users’ authentic experience, the platform further incorporated real health coaches into these digital teams, empowering them with the competencies of the aforementioned five roles and, in conjunction with AI customer service, ultimately achieving a user coverage ratio of 1:2000.

Health coaching is just one of KIDNEYHEALTH’s approaches to the digital management of patients with chronic kidney disease. The platform features a comprehensive, precision-oriented vertical management system tailored specifically for this patient population (as shown in the figure below).

From the perspective of whole-course management of chronic kidney disease (CKD), KIDNEYHEALTH also provides patient education and counseling, specialty digital therapeutics, personalized medical food formulas, medication management, and insurance-related services for patients with pre-existing conditions. Clinical studies have shown that after implementing KIDNEYHEALTH’s comprehensive chronic disease management program, patients’ 24-hour urinary protein excretion decreased by an average of 0.5 grams within 3–6 months, helping to improve the 20-year survival rate free from end-stage renal disease by 20%–40%. Moreover, patient adherence was positively correlated with the reduction in urinary protein levels.

Disclosure of Clinical Research Findings on KIDNEYHEALTH's Digital Therapeutics

Notably, the platform’s offerings—insurance for individuals with pre-existing conditions, foods for special medical purposes (FSMP), and home dialysis services—constitute the company’s core business model.

Among these, the market for insurance covering individuals with chronic kidney disease (CKD) has become a key focus for commercial insurers, with premium volume reaching approximately RMB 300 billion. KIDNEYHEALTH has partnered with multiple insurance institutions, including ZhongAn Insurance, Zhonghui Mutual Life Insurance, and Aixin Life Insurance, to provide actuarial models related to kidney diseases and develop underwriting processes, making it the only company in this field capable of offering comprehensive solutions to commercial insurers.

In the field of foods for special medical purposes (FSMP), patients with kidney disease rely on specialized diets to a much greater extent than those with other conditions. The market size for FSMP targeting kidney disease is projected to approach RMB 10 billion by 2024. KIDNEYHEALTH is collaborating with food research institutions to build its own FSMP supply chain. Currently, more than 25 FSMP products are under development, and the company aims to provide personalized FSMP prescriptions for patients in the future.

Finally, out-of-hospital home dialysis for kidney disease management is inevitably the major trend in industry development. KIDNEYHEALTH is also exploring new business directions with AstraZeneca through the joint establishment of dialysis centers.

With years of deep expertise in chronic kidney disease (CKD) management, KIDNEYHEALTH has established collaborations with 80% of the top nephrology medical institutions in China. Furthermore, the company independently produces medical-grade patient education materials on kidney disease, becoming one of the most comprehensive and professional CKD information platforms in the country. Referrals from partner medical institutions and traffic driven by its high-quality proprietary content have both become key customer acquisition channels for KIDNEYHEALTH.

It is reported that KIDNEYHEALTH’s “Shen Shang Xian” platform currently serves 1.2 million patients with kidney disease. Tens of thousands of these users have voluntarily opted for the platform’s paid services, with a 50% voluntary renewal rate and a user satisfaction rate of 99%.

Lead Investor in KIDNEYHEALTHZeng Yu, Founding Partner of Heyu CapitalStatement: KIDNEYHEALTH is a leading chronic kidney disease management platform in China. We are delighted to witness its clinical and commercial achievements. These successes stem from Mr. Chen and his team’s profound understanding of the disease and patient needs, as well as their years of technological accumulation and refinement. VCBeat has long focused on developments in the digital health sector. We are optimistic about the significant potential of KIDNEYHEALTH’s team in terms of technology and business model, and we look forward to supporting the company’s rapid growth over the long term.

Liang Yupeng, Vice President of Health Management Platforms and Solutions at Yidu Tech GroupThe rapid rise of digital healthcare is driven by the swift advancement of AI technology and the continuous improvement of internet infrastructure in recent years. With hundreds of millions of individuals suffering from chronic diseases in China and an accelerating trend of population aging, the market for digital health services targeting chronic disease management offers vast opportunities. This sector represents one of the key areas where Yidu Tech aims to deliver value through its proprietary products and ecosystem partnerships. KIDNEYHEALTH boasts an outstanding team with a profound understanding of patient needs and disease management strategies in the field of Chronic Kidney Disease (CKD), demonstrating strong innovation potential and achieving remarkable performance. We are honored to partner with the company and look forward to strengthening our collaboration by leveraging our AI-driven technologies and innovative capabilities. Together, we aim to deepen the strategy for smart city health management, foster innovative development in commercial insurance, urban health management, and academic research, enhance the accessibility of medical and health services, implement the Healthy China initiative, and jointly build a sustainable healthcare ecosystem.

Li Rui, Partner at Shunwei CapitalIt was stated that China has a large population of patients with chronic kidney disease (CKD), most of whom exhibit poor adherence, a situation that urgently needs to be addressed. With the rapid development and iteration of the internet and digital health sectors, patient management support tools for various diseases are experiencing accelerated growth. Shunwei Capital has long focused on the broader healthcare industry and first took notice of the KIDNEYHEALTH team in 2018. The company has achieved steady growth over the past few years, and there is significant potential for further expansion into the CKD patient population. We believe that under the leadership of founder Chen Xuyong, Kidney Online will lead the industry and contribute to the long-term development of kidney disease management in China.

Wen Gang, Partner at Kaifeng Venture CapitalStatement: KIDNEYHEALTH is the most professional company we have seen globally in the management of chronic kidney disease (CKD), with its team’s achievements widely recognized by numerous experts and patients. We believe that following the completion of this financing round, the company will further enhance its CKD management capabilities, enabling more CKD patients, physicians, and society as a whole to benefit from its management services.

Yang Danning, Partner at Probe CapitalKIDNEYHEALTH has pioneered a distinctive model in the field of chronic kidney disease (CKD) management and digital therapeutics in China. Leveraging its profound understanding of clinical diagnosis and treatment for CKD, the team has established a highly efficient digital intelligent management system. This system empowers health managers to effectively deliver management services to end-users, achieving remarkable clinical outcomes. KIDNEYHEALTH’s service framework and business model design not only set a benchmark in the CKD sector but also offer significant reference value for the management of other chronic diseases. We are honored to accompany the company on its continued journey forward.

MSA Capital is a private equity investment firm deeply rooted in China with a global perspective, focusing on early-stage and growth-stage investments in key sectors such as healthcare, frontier technologies, internet, and consumer industries. Headquartered in Beijing, the firm maintains resident teams in the United States, the Middle East, Africa, and other regions. Leveraging its broad global vision and profound insights into international markets, the team not only identifies high-quality investment opportunities but also helps portfolio companies rapidly expand into overseas markets by leveraging local resources.

Currently, MSA Capital manages over $1.5 billion in assets, with investment portfolio companies including Meituan Dianping (SEHK: 3690), NIO (NYSE: NIO), BGI Genomics (SZ: 300676), Uber (NYSE: UBER), Yidu Tech (SEHK: 2158), BOSS Zhipin (NASDAQ: BZ), SpeedBot Robotics, Zhaogang.com, Xiaozhu, Feibu Technology, Fordeal, T11 Fresh Supermarket, Suikun Intelligence, Yanming Biologics, Cider, Zhiyun Health, Black Sesame Technologies, Biren Technology, Piaoyitong, and PAQ Therapeutics.

Yidu Tech is a leading enterprise in the field of medical artificial intelligence. Founded in 2014, it provides intelligent technology-driven healthcare innovation solutions. Leveraging its advanced machine learning and artificial intelligence technologies, and adhering to the vision of “Data Intelligence, Green Healthcare,” Yidu Tech promotes the integration of technology and business, breaks down information barriers, and innovatively advances fields such as medical research, healthcare management, government public decision-making, innovative new drug R&D, resident health management, and innovative health insurance, thereby supporting governments, medical institutions, and the entire industry.

Yidu Cloud, the core operating platform under Yidu Tech, has successively participated in multiple government-guided, city-specific inclusive insurance projects, contributing to the development of a multi-tiered medical security system. Meanwhile, its Yinshu Health platform specializes in chronic disease management, establishing a closed-loop service ecosystem connecting hospitals, physicians, and patients to provide comprehensive lifecycle health management services for the public. During the COVID-19 pandemic, Yidu Cloud was authorized to support data analysis efforts in numerous cities across China; it also established the “City Immunity Platform” and collaborated with the Chinese Center for Disease Control and Prevention (China CDC) to facilitate global epidemic data analysis and assessment, committed to its mission of “making value-based precision medicine accessible to everyone.”

Shunwei Capital focuses on the transformations driven by the integration of mobile internet, Internet Plus, smart hardware, intelligent manufacturing, deep tech, and rural internet with other industries. Its representative investment portfolio includes over 400 outstanding companies domestically and internationally, such as Xiaomi Corporation, Ninebot, Agora, Meicai, iQIYI, NIO, and ShareChat. By investing in visionary enterprises from early to growth stages, Shunwei Capital aims to make our lives better.

Kaifeng Venture Capital is a Sino-US dual-currency venture capital firm focused on investing in early-stage technology companies, advocating a team culture of equality, transparency, sharing, and innovation. Founded in 2009, the firm primarily focuses on the healthcare and IT hard-tech sectors, with assets under management exceeding RMB 5 billion. It has provided funding and resource support to more than 100 outstanding teams and projects. Kaifeng Venture Capital has helped over ten high-tech enterprises successfully go public, including Cytek (NASDAQ: CTKB), Conatus Pharmaceuticals (NASDAQ: CNTB), Thrive (NASDAQ: EXAS), InnoLight Technology (300308), MemSensing Microsystems (688286), Huaxing Zhiyuan (000008), and Aolian Electronics (300585). Meanwhile, it has empowered a large number of companies such as Taimei Medical Technology, Geneseeq Technology, HuaKe Precision, Maxphotonics, and CooTek to stand out in their respective niche markets.

Probe Capital, established in 2017, is a boutique investment bank specializing in healthcare and life sciences. Its founding team hails from leading private equity firms, financial advisory institutions, management consulting companies, and vertical healthcare media outlets. Since its inception, Probe Capital has consistently completed double-digit private financing and M&A transactions annually, with a cumulative transaction value approaching RMB 10 billion. In terms of value-added services for portfolio companies, the Probe Capital team possesses extensive industry expertise. In 2020, Probe New Healthcare Fund was launched and has since invested in multiple leading companies within the sector.