Kingsun Tech Completes RMB 3 Billion Series E Funding to Build Digital Infrastructure for Healthcare, Pharmacy, and Insurance Services

VCBeat (WeChat ID: vcbeat) has learned that on February 9, Beijing Yuanxin Technology Group (hereinafter referred to as “Yuanxin Technology”) officially announced the completion of its RMB 3 billion Series E financing round. This round comes just six months after the completion of its Series D financing in June 2020. The round was co-led by HongShan China Fund and Tencent, with participation from CITIC Securities, CICC Capital, OrbiMed, Qiming Venture Partners, Kunling Capital, Gopher Asset Management, E Fund Management, and others. Merit Capital served as the exclusive financial advisor. The investor consortium comprises a diverse array of top-tier institutions, spanning primary and secondary markets, TMT and healthcare sectors, as well as corporate and financial capital, thereby reflecting a cross-perspective consensus among investors.

Following this round of financing, Yuanxin Technology will continue to deepen its service capabilities, allocating the funds to enhance its competitive advantages in internet healthcare, medication management, and health insurance, thereby further consolidating its ecosystem service strengths across the “healthcare provider–patient–pharmaceutical–insurance” value chain.

Yuanxin Technology was founded in 2015 and is headquartered in Beijing. After nearly six years of rapid development, it has established four major business segments: Miaoshou Doctor, Yuanxin Medical Technology, Yuanxin Pharmacy, and Yuanxin Huibao, becoming a leading comprehensive service platform in China for medical consultation, medication, and payment. Leveraging its deep understanding of the industry, Yuanxin Technology has created innovative diagnosis and treatment pathways, categorized into three major scenarios: “medical consultation,” “medication,” and “payment.” In the medical consultation scenario, Miaoshou Doctor and Miaoshou Medical Library have accumulated over 1.3 million registered physicians, with daily page views reaching 7 million. Yuanxin Medical Technology has completed the construction and operation of internet hospitals for more than 200 physical hospitals nationwide. In the medication scenario, Yuanxin Pharmacy has achieved strategic coverage in over 80 key cities across China and more than 370 Grade-A tertiary hospitals, relying on its network of over 200 self-operated pharmacies located near hospitals and Direct-to-Patient (DTP) pharmacies, providing patients with drug delivery and pharmaceutical care services. In the payment scenario, Yuanxin Huibao analyzes patient treatment and medication data to collaborate with insurance companies in offering more precise and high-quality insurance coverage. This not only effectively addresses patients’ payment challenges but also provides them with accurate medical and pharmaceutical services. Currently, the number of individuals covered by its insurance products has exceeded 30 million.

He Tao, Founder and CEO of Yuanxin Technology, stated: “In recent years, the continuous introduction of policies related to healthcare and pharmaceuticals in China, coupled with structural changes in patients’ pathways for diagnosis, treatment, medication, and payment, will unlock a trillion-yuan incremental market space. Over the past six years, Yuanxin Technology has received strong support from numerous partners, as well as widespread acclaim from the government, investors, and the industry. The company deeply recognizes that only by delivering more professional services can an enterprise go further in this serious industry. Yuanxin Technology will continue to uphold its original aspiration of being user-centric and entrepreneur-focused, continuously strengthen its ‘medical-pharmaceutical-insurance’ services, maintain rapid corporate growth, and work hand in hand with partners to build new digital infrastructure for medical care, medication, and payment, making future healthcare more precise, efficient, scientific, collaborative, and safe.”

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

Driven by policy, China’s healthcare delivery, medication use, and payment systems are accelerating their optimization, moving toward a multi-tiered medical security framework. Markets such as out-of-hospital prescriptions, online consultations, and commercial health insurance have also entered a phase of rapid growth.

Meanwhile, digital technologies are accelerating their penetration and reshaping a user-centric healthcare security system. In 2018, the State Council issued the “Opinions on Promoting the Development of ‘Internet + Healthcare’,” explicitly stating the need to encourage the development of “Internet +” medical services, improve “Internet +” pharmaceutical supply assurance services, and advance “Internet +” healthcare security settlement services. Since the outbreak of the pandemic in 2020, the trend toward digitalization has accelerated significantly.

In medical consultation scenarios, physical hospitals are accelerating their adoption of digital technologies; in medication management scenarios, the generation and distribution of electronic prescriptions are being promoted; in payment scenarios, various regions across China are actively exploring multi-tiered payment and coverage systems integrated with basic medical insurance. Bottlenecks in digital processes are gradually being removed, and a fully integrated digital closed loop is expected to be achieved in the coming years.

Since its inception, Yuanxin Technology has adhered to localized doctor-patient connectivity as its strategic cornerstone, establishing business brands such as Miaoshou Doctor, Yuanxin Pharmacy, Yuanxin Huibao, Yuanxin Medical Technology, and Miaoshou Medical Library. By constructing comprehensive integrated scenarios that combine online and offline services, link in-hospital and out-of-hospital care, and integrate pharmaceuticals with health insurance, the company has expanded the boundaries of traditional medical services, pharmaceutical distribution, health insurance, and medical informatics. It has created a patient-centered digital disease management system with extensive participation from hospitals, physicians, pharmaceutical companies, and insurers.

Over the past few years, Yuanxin Technology has continuously unlocked new growth opportunities in the incremental market for healthcare, pharmaceuticals, and insurance by leveraging its integrated capabilities across these three sectors. This has established a solid service advantage, enabling the company to rapidly grow into a unicorn enterprise in the healthcare industry.

Since 2020, Yuanxin Technology has accelerated the digital construction and operational efficiency of its pharmaceutical, medical, and insurance businesses. By providing services such as the development and operation of internet hospitals affiliated with physical hospitals, digital pharmacies, and digital policy management, the company has established an integrated online-offline digital healthcare pathway encompassing pre-consultation appointment scheduling, online consultations, and post-consultation disease management, as well as a digital medication pathway covering electronic prescription generation, prescription circulation, and prescription delivery.

Compared with sectors such as food and beverage, travel, and real estate transactions, the healthcare industry remains in the early to mid-stages of digital transformation and upgrading due to its longer value chain, more complex collaboration requirements, and stricter regulatory oversight. Nevertheless, supply-side reforms in the payment networks and processes for medical consultations and medication procurement continue to deepen, paving the way for the emergence of truly integrated, localized healthcare service platforms. Currently, Yuanxin Technology is accelerating the digitalization of medical consultation and medication services, striving to become a leading provider of integrated online-to-offline (O2O) infrastructure for healthcare and pharmaceutical access.

Tencent InvestmentStatement: Yuanxin Technology is a company that has received continuous investment and support from Tencent in the healthcare sector. From its entry into out-of-hospital prescription services in 2016, the launch of Miaoshou Internet Hospital operations in 2017, expansion into medical technology in 2018, to its foray into health insurance in 2019, each strategic decision has driven rapid corporate growth by doing the right thing at the right time. While maintaining accurate insight and control over the industry, the company has consistently upheld high-quality service standards. We are optimistic that Yuanxin Technology, as a strategically growing digital healthcare enterprise, will gain greater recognition and deeper connections with industry partners, continuing to evolve into a leader in the internet-enabled broader healthcare sector.

Zhou Kui, Partner at HongShan China FundHongShan’s partnership with Yuanxin Technology began at its seed financing stage. Over the six years of accompanying Yuanxin’s growth, HongShan has witnessed how this internet healthcare enterprise has steadily adapted to changes and scaled up through solid initiatives. The past year was extraordinary: leveraging robust technological accumulation, precise assessment of the environment, and a highly aligned execution team, Yuanxin Technology faced challenges head-on and achieved sustained development, demonstrating exceptional adaptability and growth strength. Given the vast development potential in China’s healthcare sector, HongShan has repeatedly increased its investment and continued to support the company’s growth, as we believe Yuanxin Technology is rapidly advancing toward broader prospects and will make outstanding contributions to the development of China’s digital healthcare industry.