Fushoukang Completes Tens of Millions of USD Series B Financing to Expand Home-Based Elderly Care Network Leveraging Long-Term Care Insurance

VCBeat has learned that Fushoukang, a home-based care and rehabilitation service provider, recently announced the completion of its Series B financing round, amounting to tens of millions of US dollars. The round was led by Qiming Venture Partners, with participation from Tonglong Capital and existing investor Fortune Capital. China Renaissance served as the exclusive financial advisor for this financing. The proceeds will be primarily used for market expansion, strengthening operational capabilities, building information technology platforms, and promoting new business initiatives.

Previously, Fushoukang completed its angel round of financing in 2017, followed by Series A financing jointly invested by institutions such as Fosun and Dacheng Venture Capital in 2018, and Series A+ financing with the participation of Dacheng Venture Capital.

Fushoukang, established in 2011, is an information-based smart elderly care enterprise. By deeply exploring the needs of the elderly, it provides one-stop home-based medical and nursing care services for the elderly, weak, sick, and disabled, including comprehensive home care, community care, professional clinical nursing, specialized cognitive care, and intelligent companionship.

To date, the company has established more than 100 medical nursing stations, professional institutions, subsidiaries, and branch offices. It employs over 5,500 staff members, serves more than 50,000 clients, and has delivered a cumulative total of over 10 million service visits. Rooted in Shanghai, the company’s service network covers all 15 districts of the city and extends to 25 cities nationwide, establishing a strong brand reputation among its clientele. As long-term care insurance policies are gradually liberalized across various regions, the company is poised to rapidly expand its market presence beyond Shanghai.

Regarding the team, Zhang Jun, Founder & CEO of Fushoukang, brings ten years of operational experience in elderly care and has been deeply engaged in the front lines of the home-based elderly care industry. The company’s core team comprises professionals with extensive sales management expertise and many years of experience in the healthcare sector, providing significant support to corporate management and business operations.

According to relevant data, in 2019, the number of elderly people aged 60 and above in China exceeded 250 million, accounting for 18.1% of the total population. Among them, approximately 100 million had rehabilitation needs, and over 40 million were disabled. However, as of the end of 2018, there were only nearly 30,000 elderly care service institutions nationwide, with a total of 7.464 million beds available.

Furthermore, based on the international standard caregiver-to-disabled-elderly ratio of 3:1, China requires at least 13 million caregivers; however, in reality, less than 10% of them are certified.

It is evident that China’s market for rehabilitative elderly care is vast in scale. However, the industry faces significant challenges, including insufficient supply of elderly care resources and uneven distribution of rehabilitation services. Furthermore, the overall professional competence of the nursing workforce in China requires improvement, and geriatric nursing curricula in academic institutions need to be refined. Additionally, factors such as long working hours and high labor intensity have hindered the industry’s ability to attract top-tier nursing talent.

Furthermore, China’s rehabilitation healthcare system still faces challenges such as untimely early intervention, high costs, and insufficient willingness among the elderly to pay for services. The per capita rehabilitation expenditure shows a significant gap compared with that of the United States, indicating that the rehabilitation healthcare mechanism requires further improvement.

In response to existing challenges in health and elderly care, Fushoukang has introduced advanced international concepts of home-based nursing and home-based long-term care. It has established two models: “Medical Nursing Station + Day Care Center” and “Medical Nursing Station + Elderly Care Home.” These models not only serve community care institutions but also leverage these institutions as hubs to extend services to surrounding communities, providing in-home medical rehabilitation and nursing care for elderly residents within the jurisdiction. This approach realizes an integrated care service model combining medical treatment, nursing, and health support, thereby alleviating pressure on certain rehabilitation hospitals.

To address the issues of high rehabilitation medical costs and insufficient willingness to pay, Fushoukang has adopted a solution by integrating with long-term care insurance. As one of the first designated service providers for Shanghai’s “Long-Term Care Insurance,” the majority of the costs incurred by consumers for purchasing services can be covered by the long-term care insurance fund.

It is reported that after consumers purchase the service, caregivers provide home visits 3–7 times per week, depending on the level of care required. These visits include 27 basic activities of daily living (ADL) support services and 15 common clinical nursing services. By leveraging precise customer acquisition channels and fostering positive interactions and strong stickiness with elderly clients through high-quality service, the company has gradually expanded its offering into a “23+1” one-stop service model.

Leveraging the benefits of long-term care insurance, not only can the elderly access high-quality services at a lower cost, but Fushoukang is also able to achieve more rapid development. It is reported that 70% of Fushoukang’s 24-hour nursing users are covered by long-term care insurance. Currently, Fushoukang’s services in eight cities, including Shanghai, Guangzhou, Chengdu, and Suzhou, are all covered under the long-term care insurance scheme.

In terms of talent development, Fushoukang has established a standardized training system for frontline staff, including nursing assistants, rehabilitation therapists, and nurses. This system encompasses pre-service training, regular in-service advancement training, and specialized training programs, while also improving compensation and benefits for frontline employees. Notably, the training instructor team is composed of professionals such as head nurses and charge nurses from local Grade 3A hospitals, ensuring the professionalism of the training. Regarding team management, Fushoukang also regularly organizes regional managers to participate in training and practical exercises.

To facilitate the implementation of standardized training programs, Fushoukang has established a “Standardized Training Base for Elderly Caregivers” in Minhang District, Shanghai, which is one of the six major practical training bases in the district. Additionally, the company operates a dedicated online education platform, “Fu Professor,” which provides various nursing-related knowledge and standards. All content is uniformly developed by instructors from the company’s Technical Center and is protected by intellectual property rights.

Currently, Fushoukang employs over 40 professional rehabilitation therapists, more than 200 nurses, and nearly 5,000 caregiving assistants. Under its specialized training and management systems, customer satisfaction remains consistently high, with virtually zero complaints from elderly care recipients and a low turnover rate among caregiving staff, effectively preventing talent loss.

Driven by the expansion of Fushoukang’s service outlets and favorable macro-environmental trends, Fushoukang has integrated internet technologies to develop a community-based elderly care interactive system. This system effectively facilitates information sharing among the elderly, their children, social service providers, and care centers. Furthermore, leveraging health and wellness care as an entry point, Fushoukang deeply explores the caregiving needs of older adults, extending its services into medical care, health management, daily living assistance, and assistive devices for elderly care.

Currently, Fushoukang has further improved its rehabilitation and nursing service management platform by establishing a "Smart Care" operational model. The platform now features functional modules including a Human Resources Management System, Customer Relationship Management (CRM) System, Long-Term Care Insurance Business System, Work Order System, Assessment System, Smart Nursing System, and Data Statistics.

In terms of service, full supervision of caregivers’ service processes is achieved through a combination of a regulatory system and smart devices (regulatory beacons and voice recorders). By leveraging intelligent mattresses, activity monitors, smart medication boxes, and one-touch call buttons, the physical condition and activities of elderly individuals are monitored in real time, enabling the prevention and timely handling of unexpected incidents.

Next, Fushoukang will continue to advance the layout of its subsidiaries and institutions in other regions, primarily selecting areas where long-term care insurance policies are expected to be introduced soon for expansion. Market research and operational planning for these regions have already been completed.

Meanwhile, the Company will continue to strengthen its information technology platform, enhance the overall capabilities of its IT team, and develop proprietary information systems and service supervision systems tailored for Fushoukang. These initiatives aim to bolster the smart elderly care ecosystem, reduce reliance on manual labor in nursing services, improve customer experience, and lower the cost of accessing services for clients.

In terms of business operations, Fushoukang will continue to intensify its promotional efforts, increase investment in its commercial service segment, expand its business scale, and explore new business models on the existing foundation.

Regarding the exploration of future business models and services, Zhang Jun stated that Fushoukang is currently able to provide seniors with over 40 types of services by leveraging long-term care insurance. Although this range is extensive, it still falls short of meeting the comprehensive needs of the elderly. Moving forward, Fushoukang will continue to expand its service offerings in areas such as bathing assistance, palliative care, and dementia care for special populations. Meanwhile, the company will introduce high-quality overseas equipment and technologies to better address the actual needs of seniors.

Jin Da Gao, Executive Director of Qiming Venture Partners, stated, “Fushoukang has rapidly established the largest elderly care service network in China with the deepest offline reach by leveraging in-home nursing services as its entry point for home-based elderly care. With strong product capabilities and exceptional service quality, it has progressively uncovered the personalized needs of the elderly, providing them with more diverse and customized high-quality service options. We are delighted to see the Fushoukang model being gradually implemented across China, with its personalized elderly care business continuing to achieve rapid growth.”

Zhou Xiang, Head of the Financial Advisory Division at China Renaissance, stated, “With the continuous expansion of the elderly population and the steady rise in spending power among seniors and their families, the silver economy is poised to become the next trillion-dollar market, with home-based care emerging as the preferred choice for the majority of older adults. As China’s largest brand for home-based elderly care services, Fushoukang has evolved beyond being merely synonymous with high-quality nursing care. It has developed the ‘Fushoukang Model,’ which leverages precise customer acquisition, high-quality service delivery, and strong brand conversion to establish a regional one-stop elderly care service platform. We are pleased to serve as the financial advisor for Fushoukang’s current funding round and look forward to the company maintaining its robust growth momentum, ultimately becoming a dominant player in China’s home-based elderly care sector.”

Qiming Venture Partners was established in 2006 and has successively set up offices in Shanghai, Beijing, Suzhou, Shenzhen, Hong Kong, Seattle, Boston, and the San Francisco Bay Area. Currently, Qiming Venture Partners manages nine U.S. dollar funds and five RMB funds, with total assets under management exceeding US$5.6 billion. Since its inception, the firm has focused on investing in outstanding early-stage and growth-stage companies in industries such as TMT and Healthcare.

To date, Qiming Venture Partners has invested in more than 370 high-growth innovative companies. Among these, over 120 have achieved exits through initial public offerings on exchanges such as the New York Stock Exchange (NYSE), NASDAQ, the Hong Kong Stock Exchange (HKEX), the Taipei Exchange (TPEx), the Shanghai Stock Exchange (SSE), and the Shenzhen Stock Exchange (SZSE), as well as through mergers and acquisitions. More than 30 of these portfolio companies have been widely recognized as unicorns or super unicorns within their respective industries.

Tonglong Capital is a legitimate, specialized financial institution focused on private equity investment management.

Founded on April 19, 2000, and headquartered in Shenzhen, Fortune Capital is one of the first domestic venture capital firms established in China to operate on a market-oriented basis. Since its inception, alongside China’s rapid economic growth and the continuous improvement of its multi-tiered capital market, and with the care and support from all sectors of society, Fortune Capital has focused on key sectors including information technology, intelligent manufacturing, energy conservation and environmental protection, healthcare, mass consumption and enterprise services, culture and media, and defense industry. It has grown into one of the largest, most capable, and most influential venture capital institutions in China today. Furthermore, it has been elected as a vice-chairman unit of several professional associations, including the Equity and Venture Capital Professional Committee of the Investment Association of China, the Asset Management Association of China (AMAC)’s Private Equity Fund Branch, Shenzhen Private Equity Association, Shenzhen Venture Capital Association, Shenzhen Investment Fund Association, and Shenzhen Entrepreneurs Confederation.

China Renaissance Holdings is a leading financial institution in China serving the new economy. The company’s businesses include private placement financing, mergers and acquisitions, securities underwriting and issuance, securities research, securities sales and trading, private equity investment, broker-dealer asset management, and other services, dedicated to providing one-stop financial services to entrepreneurs and investors in China’s new economy.