Mogu Pet Healthcare Files IPO Prospectus: Leveraging Internet-Driven Innovation to Standardize and Democratize Veterinary Care
Amidst the increasingly pronounced trends of population aging and declining birth rates, pets have become a source of emotional solace for humans, giving rise to the pet economy as a new emerging market opportunity.
The “2019 White Paper on China’s Pet Industry” shows that the market size of China’s pet industry reached RMB 202.4 billion in 2019, a year-on-year increase of 18.5%. It is expected to maintain an average annual growth rate of over 15% in the next five years, and the market size may exceed RMB 500 billion by 2025.
Pet healthcare is a vital component of the pet market. Driven by internet technology, online veterinary consultations are gradually emerging as a new trend. However, as the sector is still in its early stages of development, the competitive landscape remains undefined, and no dominant players have yet emerged, leaving substantial market opportunities for entrepreneurs.
Mogu Pet Health is one of the earliest enterprises in China to engage in the internet-based veterinary healthcare industry. Leveraging a network of over 1,000 registered licensed veterinarians, the company provides reliable pet health information and services to pet owners across China.Currently, the company’s business scope includes professional science popularization content, online veterinary consultations, and online pet medication purchasing services. It has accumulated over 300,000 registered pet owners and served more than 100,000 pet owners.has become an industry leader.
On November 26, 2020, Mogu Pet Medical took a significant step by expanding from online services to offline operations, opening its first brick-and-mortar hospital in Chengdu. Adopting a community hospital model, the facility is equipped with a specialized laboratory, wellness center, operating room, ultrasound room, low-pressure chamber, inpatient department, and pharmacy, enabling it to provide high-quality veterinary medical services for dogs and cats.
Establishing offline hospitals is a crucial component of Mogu Pet Medical's strategic layout. To this end,Mogu Pet Medical has established a hybrid model integrating online consultations with offline medical care, creating a closed-loop service ecosystem that encompasses online diagnosis, visits to physical hospitals, and online medication purchasing., better meeting pet owners’ healthcare needs and promoting transparency in veterinary pricing and standardization of services.
Lian Daqi is a typical tech-savvy founder with years of experience in the internet healthcare industry. Before founding Mogu Pet Medical, he had independently established an online consultation platform. However, due to the homogenized business models of online consultation platforms at that time, a nearly saturated market, and the tight control of doctor resources and traffic acquisition channels by leading enterprises, it was extremely difficult for startups to break through in a market dominated by giants.
In addition to being a founder, Lian Daqi is also a pet owner. In 2016, when his pet fell ill and he searched online for relevant information, he discovered that most of the educational content on pet diagnosis and treatment was edited by non-professionals. The information was often outdated and of inconsistent quality, making it difficult for pet owners to access accurate and useful guidance while leaving them vulnerable to misinformation. This experience drew Lian Daqi’s attention to the online veterinary healthcare market.
Data shows that the number of pet owners in China has reached 73.55 million, with the pet population totaling 250 million. As the number of pets in China continues to grow, the demand for veterinary consultations is also gradually rising.However, there is a shortage of licensed veterinarians in China, resulting in a severe mismatch between supply and demand. Licensed veterinarians also face the issue of low income, creating an urgent need to increase their earnings and build personal brands through online consultation platforms.
Meanwhile, apart from a few large chain hospitals, pet hospitals in ChinaMost are small, non-chain pet hospitals, typically represented by street-level mom-and-pop shops, which generally offer lower-quality services and suffer from information asymmetry, opaque pricing, and arbitrary charges.
The numerous pain points in the traditional pet diagnosis and treatment market have created opportunities for internet-based veterinary healthcare. Lian Daqi founded Mogu Pet Health with the initial aim of addressing these industry challenges through an online veterinary platform, thereby promoting standardized and regulated development within the sector.
In recent years, numerous online veterinary consultation platforms have emerged in China, and major brick-and-mortar hospitals have also launched online consultation channels. Lian Daqi noted that the primary objective of most consultation platforms in the industry is not to resolve users’ issues, but rather to sell products and direct clients to offline hospitals.Doctors often assume the role of “salespeople.”
Mogu Pet Vet does not prioritize sales; it consistently adheres to the philosophy of solving problems for its clients.The company's business scope includes the production of popular science content, online consultation services, online pharmaceutical sales, and offline hospital operations.The platform’s science popularization content is produced by professional veterinarians, ensuring authority and expertise. Consultation services are provided by over 1,000 nationally licensed practicing veterinarians across China, enabling rapid and professional fulfillment of customer needs. The online pharmacy section is the only channel in the industry that facilitates medication purchases through properly issued prescriptions.
Lian Daqi shared a service case: A kitten suffered from diarrhea and was taken to multiple hospitals for treatment, where each facility subjected it to various tests and pushed product sales. The owner spent nearly 10,000 yuan over half a month. Later, the owner consulted Mogu Pet Doctor, which identified that the persistent diarrhea was linked to the high-priced prescription diet recommended by the pet hospitals. Following the advice provided by the platform’s veterinarians, the kitten’s diarrhea ceased within two days.
The story of this kitten is not an isolated case. Relying on professional services, Mogu Pet Health has gained a large number of loyal users, and the team frequently receives feedback from across China. It is understood thatMogu Pet Health has accumulated over 300,000 registered pet owners, served more than 100,000 pet owners, and achieved 12 million monthly active users.
Now,As offline hospitals commence operations, Mogu Pet Medical has officially established a closed-loop service ecosystem encompassing online consultations, offline hospital care, and online medication purchases.Lian Daqi stated, “With the integration of online and offline channels, users can purchase offline services online—for example, buying a sterilization package online for use at a physical hospital—ensuring price transparency and standardized service processes. Users can also consult via the online platform while receiving care at offline hospitals, thereby avoiding potential pitfalls.”
Opening offline hospitals is a bold attempt by Mogu Pet Doctor. After the online consultation and offline medical treatment model has been validated,Mogu Pet Health will collaborate with veterinary hospitals across China to rapidly replicate this model nationwide.“We aim to consolidate small hospital chains and family-run clinics in the market, helping them expand their patient base, enhance service quality, and jointly promote the standardized development of the industry.”
Three years ago, China experienced a surge in pet ownership. Generally, pets enter a high-risk period for diseases after the age of six, leading to a significant increase in diagnostic and treatment needs. Therefore, the pet healthcare market is expected to see rapid growth in three years.
Regarding future plans, Lian Daqi stated that Mushroom Pet Med’s current focus is to continuously explore and solidify its foundation in online consultations, online pharmacy services, and offline hospitals. Additionally, the widespread adoption of insurance is a key means to promote standardization of diagnosis and treatment as well as price transparency. The company will enter the insurance business at an appropriate time to further build a closed-loop service ecosystem. Once the pet healthcare market reaches its explosive growth phase, Mushroom Pet Med will segment operations by disease categories to implement refined management, thereby continuing to provide high-quality medical services for pets.