Why Has MediTrust Health Become a Capital Darling? Backed by Over 10 Top-Tier Investors with a New RMB 2 Billion C-Round

Recently,Shanghai MediTrust Health Technology Co., Ltd. (hereinafter referred to as “MediTrust Health”) officially announced the completion of its Series C financing round, exceeding RMB 2 billion.This funding round was co-led by Boyu Capital and Jiantian Industrial Investment, with Lilly Asia Ventures, Qiming Venture Partners, BOC International Holdings, AIHC Lingjian, China Everbright Limited, Shanghai Lianxin, and CICC among the participating investors. Existing shareholders, including the Shanghai Biomedical Industry Fund, Sinovation Ventures, Huaxing New Economy Fund, and Yuanyi Capital, continued their support.

Notably, this marks another financing round for MediTrust Health within six months, following its RMB 1 billion Series B funding completed in March this year.

Capital markets are always the most sensitive, yet also the most cautious, barometer of industry trends. The fact that MediTrust Health successfully closed two rounds of ultra-large financing in quick succession, attracting numerous industry leaders to participate, underscores investors’ strong recognition of its unique ecosystem development, business value, and core competitive moats.

On the other hand, the strong influx of capital also reflects the high-growth trend of the domestic health insurance market: according to data from the VCBeat Orange Database, since 2019, there have been more than 40 financing events in China's health insurance industry, with total financing exceeding RMB 10 billion. As an industry-leading innovative healthcare service company, MediTrust Health, driven by smart technology and centered on its dual platforms of healthcare and insurance, has explored a unique development path and established differentiated advantages.

Amid the sustained high-speed growth of the health insurance sector, MediTrust Health, now bolstered by additional capital support, is accelerating the deep integration of “pharmaceuticals and insurance.”

MediTrust Health, founded in 2017,Since its inception, the company has been driven by smart technology, committed to providing users and families with more comprehensive, cost-effective, and high-quality healthcare services.

According to data from the National Health Commission, out-of-pocket expenses currently account for approximately 50% of China’s healthcare market size, amounting to around RMB 1.2 trillion. This proportion is even higher in the fields of major diseases such as cancer and innovative therapies, placing a greater financial burden on patients. Despite the basic coverage provided by public medical insurance and the supplementary role of commercial health insurance, individuals remain vulnerable to “poverty caused by illness” or “relapse into poverty due to illness” when confronted with serious medical conditions.

To help address this issue, MediTrust Health first tackled the payment side by deeply aggregating the needs of self-pay patients and integrating healthcare with insurance, thereby enabling patients to access cutting-edge drugs and medical services at lower costs and with greater convenience.

Specifically, MediTrust Health connects participants in the pharmaceutical and insurance industries to provide users with more accessible medical resources, higher-quality pharmaceutical services, more reliable medical coverage, and more personalized healthcare and health management.

First, on the patient client side.MediTrust Health’s “Yao Kang Fu” platform, a leading comprehensive healthcare service platform for patients, has partnered with over 50 innovative pharmaceutical companies and more than 2,000 DTP (Direct-to-Patient) pharmacies. Covering over 400 cities across China, it benefits millions of patients with cancer, chronic diseases, and rare diseases, significantly enhancing the healthcare service experience for patients and their families while alleviating their financial burden.

Notably, through collaborations with pharmaceutical companies, financial institutions, and pharmacies, Yaokangfu has launched innovative payment solutions such as medication benefit programs and installment plans for pharmaceuticals. Meanwhile, by integrating three core modules—information aggregation, innovative services, and patient communities—it provides a more systematic healthcare service tailored to individuals with non-standard health conditions. This approach not only reduces patients’ out-of-pocket medication expenses but also enhances their medication adherence and confidence in treatment.

On the other hand, MediTrust Health is also expanding into internet hospitals,Its subsidiary, Kangfu Internet Hospital, is the first independently established internet hospital in the Hainan Boao Lecheng International Medical Tourism Pilot Zone.It is reported that the internet hospital will be based in Boao Lecheng, leveraging the inherent advantages of digitalization and intelligence to connect with global new drugs, therapies, and medical devices for the benefit of patients in China. Furthermore, building on MediTrust Health’s leadership in pharmaceuticals and commercial insurance, it will further strengthen healthcare service infrastructure, promote access to innovative medicines, and provide comprehensive disease management for patients with chronic conditions.

Meanwhile, MediTrust Health is also a practitioner of multi-tiered health protection and a piloter of sustainable models.To fully leverage the supplementary role of commercial insurance, support the development of a multi-tiered social security system, and effectively alleviate the burden of medical expenses for the public, MediTrust Health has been continuously innovating in areas such as out-of-pocket payments, commercial health insurance, and city-specific inclusive insurance, catering to both patients and healthy individuals.

Since 2020, MediTrust Health has been deeply involved in city-level inclusive insurance programs such as “Su Hui Bao,” “Xihu Yilian Bao,” “Hui Qu Bao,” “Hu Hui Bao,” and “Beijing Puhui Health Insurance,” covering more than 40 cities including Beijing, Shanghai, Hangzhou, and Ningbo.

It is worth noting that MediTrust Health was deeply involved in Shanghai’s “Hu Hui Bao,” a city-customized commercial medical insurance product that set a new record for first-year enrollment with 7.39 million participants this year. MediTrust Health not only provided product design and technical support but also delivered pharmaceutical services in partnership with Shanghai Pharmaceuticals Holding.

In addition, inclusive urban insurance has played an important role in helping the public access high-quality medications at a lower cost.Taking West Lake Yilianbao as an example, it covers Aptum Tumor Treating Fields (TTFields), a breakthrough innovative therapy that is the first to be approved in China for glioblastoma in 15 years. Although the treatment cost is high, insured patients can be reimbursed up to 60%, saving nearly RMB 240,000 per treatment cycle. This enables more patients to access cutting-edge global treatment options at a lower cost.

In the view of Zhang Xiaodong, CEO of MediTrust Health, both the insurance and pharmaceutical industries are highly traditional and massive sectors that historically operated in silos. Bridging these two industries from an intermediary position is inherently challenging. MediTrust Health’s role is to “build a bridge,” effectively connecting these two separate domains through specific operational mechanisms. However, the “bridge” built by MediTrust extends beyond merely linking the insurance and pharmaceutical sectors. On another level, MediTrust aims to enable patients to rely more on commercial insurance for medication payments, thereby fostering robust integration among commercial insurance, healthcare, and pharmaceutical industries, and truly delivering tangible benefits to the public.

Compared with its peers, MediTrust Health entered the market relatively late, but it has advanced at a rapid pace, thanks to the substantial support consistently provided by its numerous shareholders.

Zhang Xiaodong has stated to the media,MediTrust Health aims to build a bridge between the pharmaceutical and insurance industries. However, relying solely on its own resources is insufficient. In this context, shareholders play a crucial role: while they are investors, more importantly, they serve as deep strategic business partners.

Prior to its Series C financing round, MediTrust Health had already completed multiple rounds of funding within just four years of its establishment, with a diverse range of investor participants. There are those likeStone Capital, Yuanyi Capital, Boyuan Capital, Innovation Workswell-known medical investment institutions, as well asShanghai Pharmaceuticals, China Re Life InsuranceIndustrial investors from the pharmaceutical and insurance sectors have fully leveraged their strengths to deeply integrate their core businesses into MediTrust Health’s service ecosystem, achieving win-win outcomes across the industry.

As the times continue to evolve, market enthusiasm in the industry has been steadily rising, and competition has become unprecedentedly fierce. For investment institutions, the relationship with portfolio companies is no longer a simple “investor-investee” dynamic; rather, it has transformed into a mutually beneficial partnership characterized by “synergistic collaboration and win-win cooperation.” This shift is vividly exemplified by MediTrust Health.

Taking Shanghai Pharma Cloud Health, an incubated shareholder of MediTrust Health, as an exampleLi Yongzhong, General Manager of Shanghai Pharmaceuticals Holdings and Chairman of Shanghai Pharmaceuticals Cloud Health, stated, “In recent years, the state has continuously advanced healthcare system reforms centered on the ‘three-medical linkage’ (coordinated reform of medical services, health insurance, and pharmaceuticals), promoting drug price reductions through various means to alleviate the financial burden on patients. Over the years of its development, MediTrust Health has fully leveraged its first-mover advantage by integrating the pharmaceutical industry with insurance and finance, thereby enabling high-quality medical and health resources to gradually reach patients across China. Shanghai Pharmaceuticals Holdings and Shanghai Pharmaceuticals Cloud Health will continue to support MediTrust Health in utilizing its high-quality resources in the pharmaceutical sector to enhance drug accessibility and alleviate medical cost burdens in a high-quality and efficient manner.”

as a strategic shareholderChina Re Life Insuranceas an example. As a leading enterprise in China’s insurance industry, China Re Life Insurance leverages its strengths in risk control and collaborates with MediTrust Health to promote further integrated innovation in healthcare and insurance services. This partnership aims to provide more Chinese patients with enhanced services and coverage, alleviate their financial burden, make high-quality advanced medical treatments more accessible to the public, and support the government in improving the multi-tiered medical security system through multi-party cooperation.

And Series B InvestorsAnt GroupAlipay is one of China’s super apps with the largest traffic volume, providing strong support for MediTrust Health’s business development. This helps MediTrust Health expand the boundaries of its internet healthcare products and services, strengthen its online-to-offline operational capabilities, and accelerate the layout of its digital healthcare business.

Investors in this round, existing shareholdersShanghai Biopharmaceutical FundMeanwhile, it leverages its strengths in pharmaceutical resources to support MediTrust Health through industrial resource empowerment and market-oriented operations, thereby achieving synergistic effects.

Zhang Xiaodong once stated to the media,MediTrust Health is not merely representative of a startup; it more significantly embodies shared perspectives within the industry. It is precisely through “collective wisdom” that MediTrust Health has been able to continuously advance the industry toward healthy development. By establishing deep collaborations with diversified shareholders, the company not only jointly explores the cross-sector integration of healthcare and insurance but also unlocks greater possibilities and opportunities for MediTrust Health.

After a decade, the new healthcare reform centered on the “three-medical linkage” has gradually entered deep water. In February 2020, the State Council issued the Opinions on Deepening the Reform of the Medical Security System, further clarifying the need to accelerate the establishment of a multi-tiered medical security system and promote reforms in payment methods and the supply side of pharmaceutical and medical services.

Driven by strong policy support, China’s healthcare delivery, pharmaceutical utilization, and payment systems are accelerating their optimization, moving toward a multi-tiered medical security framework. Markets such as out-of-hospital prescriptions, online diagnosis and treatment, commercial health insurance, and health management are also entering a phase of rapid growth.

Meanwhile, advanced technologies such as artificial intelligence, the Internet of Things, and big data are rapidly permeating the healthcare sector, reshaping a user-centric healthcare security system and beginning to translate cutting-edge technologies into clinically viable solutions. In 2018, the State Council issued the “Opinions on Promoting the Development of ‘Internet Plus Healthcare,’” explicitly encouraging the development of “Internet Plus” medical services, improving “Internet Plus” pharmaceutical supply and guarantee services, and advancing “Internet Plus” healthcare security settlement services.

It is evident that, with the advancement of the times, the healthcare sector is moving more resolutely toward improved service quality, greater accessibility, and more transparent medical costs. The integration of various data technologies with clinical practice has evolved from superficial applications to deep-level interaction. This new healthcare paradigm, characterized by “health management + pharmaceuticals and insurance,” has ushered in a “golden age” of development, becoming a core driver of economic growth.

From this perspective, industry participants are driving the continuous transformation of healthcare services toward value-based care. Specifically, health insurance players, guided by the principles of value-based care, are deeply engaging in the “tripartite coordination” among medical treatment, health insurance, and pharmaceuticals. By expanding funding sources, providing insurance coverage, integrating service delivery, and strengthening industrial consolidation, they have become a catalyst for deepening healthcare reform. Building on their role in mitigating medical cost risks, they are helping to shift the healthcare model from one centered on disease treatment to one focused on health.

This core logic underpins the technological framework and business model currently being built by MediTrust Health, which leverages innovative healthcare payment solutions as a strategic entry point to optimize and enhance the industrial value chain, while establishing win-win collaborations with various stakeholders within its ecosystem.

First, on the patient-side client.MediTrust Health aggregates its medical services and medication needs, leveraging economies of scale to enable users to access high-quality medicines at lower prices, while fully meeting their diverse personalized needs through innovative financial and service products.

Secondly, on the part of pharmaceutical companiesMediTrust Health has launched customized payment solutions for certain new drugs or blockbuster medications, effectively achieving broader accessibility and more efficient sales turnover. Specifically, while providing pharmaceutical companies with standardized solutions encompassing order processing, payment, distribution, and patient services, it has also accelerated the rapid development of pharmaceutical enterprises dedicated to innovative products from another dimension.

Finally, on the side of insurance institutions.MediTrust Health leverages real-world medical scenarios to build a comprehensive library of intelligent insurance tools and a technical support platform for insurers, covering the entire insurance value chain—including actuarial science, marketing, underwriting, claims processing, and cost control. This initiative drives innovation in health insurance products, enhances the end-to-end service experience, and improves policyholder renewal rates.

Regarding future development, Zhang Xiaodong, Founder and CEO of MediTrust Health, stated: “The company will continue to uphold its vision of ‘patient-centered innovation in medical services, contributing to the building of a happier future society.’ We are committed to continuously enhancing our medical service capabilities, thereby providing the public with more comprehensive, affordable, and high-quality healthcare services, and contributing to the realization of the long-term goals of ‘Healthy China 2030.’”

Catalyzed by the pandemic, the growth potential of the digital health industry has been further unlocked, and China’s health insurance sector is experiencing unprecedented market enthusiasm.

In the primary market, large-scale financing rounds continue to emerge. In addition to MediTrust Health’s two consecutive mega-financing rounds, Yuanxin Technology Group recently announced the completion of its Series F funding round, exceeding RMB 1.5 billion.

In the secondary market, star companies are successively reaching their IPO moments. For instance, Waterdrop Inc. officially listed on the New York Stock Exchange this May, under the stock ticker “WDH,” with a market capitalization of $3.823 billion, equivalent to over RMB 24.6 billion. Additionally, several other companies have announced the completion of new rounds of financing and have plans to go public.

The consistent optimism from the capital market has raised expectations for the future of China’s health insurance industry, and as a leader in this sector, MediTrust Health has naturally garnered increased attention.

Of course, securing financing is not only a strong affirmation of past achievements but also a testament to the boundless expectations for the future.

As advocated in the white paper “Value-Based Healthcare in China,” the future path of value-based healthcare for commercial health insurance should also center on population health, focusing on improving patients’ medical outcomes and health status. By strengthening the construction of health and medical service systems, enhancing data and technological capabilities, and fostering in-depth collaboration with basic medical insurance, commercial health insurers can significantly expand their service coverage, thereby driving the development of the commercial health insurance sector.

In other words, businesses must always prioritize user value in their development. Specifically, in the big health industry, this means improving healthcare efficiency, making medical care more affordable and accessible, and enabling people to lead healthy and fulfilling lives. Only in this way can the industry achieve healthy and sustainable growth.