Linyi Kuaiyao Secures Tens of Millions of Yuan in Series A Funding, Empowers 20,000 Traditional Pharmacies with New Retail Transformation

VCBeat has learned that Linyi Fast Medicine recently announced the completion of its tens-of-millions-yuan Series A financing round. This round was led by Jixiang Lei (Yantai) Medical Technology Co., Ltd., a wholly-owned subsidiary under the digital healthcare division of Ruikang Pharmaceutical (002589.SZ). The funds will be allocated to market expansion, software development and upgrades, and team building.

In recent years, the new retail model in the pharmaceutical industry has continued to gain momentum, becoming a hot spot in the pharmaceutical market. The need for traditional pharmacies to develop new retail strategies has become increasingly urgent. Linyi Fast Medicine is committed to leveraging technology to help traditional brick-and-mortar pharmacies achieve digital transformation and develop new retail operations. Through a B2B2C model, the company builds online service systems for pharmacies, including electronic prescription circulation, intelligent member management, online malls, online consultations, medication guidance, lectures by renowned physicians, and live streaming. This integration of online and offline services helps pharmacies innovate their business models, improve efficiency, and provide professional medical services to patients.

Since its official launch in August 2020, Linyi Fast Medicine has provided new retail technology solutions for pharmaceuticals to 20,000 pharmacies under approximately 400 chain pharmacy brands across China.

Impacted by the pandemic, patient purchasing behaviors are shifting from offline purchases to online ordering and home delivery, opening up growth channels for online sales. Data shows that in February 2020, JD.com’s O2O pharmaceutical services grew by 80% year-on-year. During the 2020 Spring Festival period, Meituan Waimai saw a 237% year-on-year increase in sales of prescription medications for chronic diseases. China’s total pharmaceutical retail market is valued at approximately RMB 400 billion, with 30% (around RMB 120 billion) expected to be sold online.

Furthermore, patients’ habits of remote medical consultations are accelerating, with patient demand shifting from simple medication purchases to online pharmaceutical care consultations and health services. In this context, digital transformation, online presence, enhancement of professional capabilities, and provision of diversified services have become key elements for pharmacies to build core competitiveness.

Offline sales growth remains sluggish as pharmaceutical consumption shifts to online channels. The vigorous development of new retail in the pharmaceutical sector has made the integration of online and offline channels an inevitable trend, driving traditional pharmacies to accelerate their transformation from a model based on earning price differentials through drug sales to one that provides higher-value professional pharmaceutical services.

It is reported that there are over 500,000 pharmacies in China, with independent stores and chain stores each accounting for half. Both types have the need to develop e-commerce operations and expand into new retail. However, due to a lack of professional teams, software technology, and relevant experience, pharmacies face significant challenges in independently developing new retail models and urgently require support from specialized enterprises.

Anhui Linyi Fast Medicine Technology Co., Ltd. was founded to address the pain points of traditional pharmacies in developing new retail models. By providing pharmaceutical new retail technology solutions, the company helps pharmacies improve operational efficiency and consumer experience, optimize services, and deliver precise, professional medical care to patients.

The integration of online and offline channels is the core of New Retail. Linyi Fast Medicine provides pharmacies with integrated online-to-offline (O2O) technical solutions, including order management, electronic prescription circulation, online consultations, intelligent membership systems, precision chronic disease management systems, electronic exchange of initial qualification documents, pharmaceutical payment and cashier systems, internet hospital management systems, and B2B trading platforms.

Among these features, the company’s online order system enables internet-based data interoperability, real-time synchronization of inventory between online and offline pharmacies, automated order processing, and online analysis of operational data, thereby providing guidance for pharmacy category management. The intelligent membership management system delivers professional pharmaceutical services to members across both online and offline channels, enabling personalized experiences (“one thousand faces for one thousand people”) and precision marketing. This effectively enhances patient stickiness and assists pharmacies in transitioning toward specialized pharmaceutical care models.

Meanwhile, Linyi Fast Medicine boasts a professional operations team that provides managed operation services to pharmacies. If pharmacies were to manage their online businesses independently, they would need to recruit 3–5 e-commerce staff members, resulting in prohibitively high costs. The operations leads at Linyi Fast Medicine are seasoned professionals in pharmaceutical e-commerce. By outsourcing operations to the company, pharmacies can control operational costs while delivering timely and professional services to patients.

For pharmacies, the digital transformation solution provided by Linyi Fast Medicine enables 24/7 operations, significantly expanding their service reach from local community residents to customers within a 10-kilometer radius, and even nationwide. While traditional pharmacies cannot obtain prescriptions for prescription drugs, new retail pharmacies can leverage online hospitals to provide prescription services.

For patients, online pricing is more transparent, and they can access online medication consultation services. Unconstrained by time or location, patients can purchase medications through platforms such as Meituan or pharmacy mini-programs, with delivery within 30 minutes. They can also order medications nationwide via online channels, obtaining drugs that are unavailable at nearby pharmacies.

Currently, Linyi Fast Medicine has obtained the “Internet Drug Information Service Qualification Certificate” issued by the Anhui Provincial Food and Drug Administration, and completed the setup of systems including interface software, order management system, pharmaceutical payment cashier system, official WeChat account, and online mall. From the project’s launch in August 2020 to the end of August 2021, Linyi Fast Medicine had signed contracts with 400 chain pharmacies, covering approximately 20,000 pharmacy outlets.

Going forward, Linyi Fast Medicine will continue to develop and upgrade its software systems, including the online order system, online product analytics system, chronic disease management system, mini-program e-commerce platform, and internet hospital system. Meanwhile, it will enhance its operational services and actively expand its market presence, striving to serve 100,000 pharmacies within three years.

In the future, pharmacies will become key entry points for chronic disease management, mobile payments, health screenings, commercial health insurance, and online medical consultations. Therefore, in the longer term, Linyi Fast Medicine will leverage its massive patient base and big data capabilities to empower pharmacies in delivering chronic disease management, internet healthcare, and other comprehensive health services. Meanwhile, it will strategically expand into pharmaceutical supply chains, supply chain finance, health screenings, and commercial medical insurance, aiming to become a leader in China’s e-commerce sector for pharmaceuticals and holistic health.

Jixianglei is a wholly-owned subsidiary of Ruikang Pharmaceutical, specializing in digital healthcare services. The company integrates internet technology with the medical industry, centering on internet-based healthcare, leveraging physician groups as a key driver, supported by new retail models, and bolstered by commercial insurance, with a focus on chronic disease management. It is building a digital healthcare ecosystem platform encompassing the entire “physician–medication–insurance–patient” value chain, incubating new business formats capable of leading the group’s future development, and striving to become a leading health-tech ecosystem platform in China.