Yuanxin Technology Completes $860M Series D1 Funding to Strengthen Integrated 'Medical Care-Pharmacy-Insurance' Ecosystem

VCBeat (WeChat ID: vcbeat) has learned that Beijing Yuanxin Technology Co., Ltd. (Miaoshou Doctor) recently announced the completion of its D1 round financing, raising RMB 600 million. The round was jointly invested by Qiming Venture Partners, Ince Capital, Sequoia Capital, CITIC Securities, Index Capital, and other institutions.

This marks another round of financing for Yuanxin Technology since it announced the completion of its C3 funding round in June 2019. The proceeds will be used to drive the integrated development of Yuanxin Technology’s “healthcare-pharmaceuticals-insurance” businesses, including its Miaoshou Doctor Internet Hospital, medical technology, prescription circulation and management, and health insurance services.

Yuanxin Technology, established in 2015, operates five specialized brands: Miaoshou Doctor, Yuanxin Medical, Yuanxin Pharmacy, Yuanxin Huibao, and Wujie Jinxin. The company is an industry leader in several key areas, including physical hospital and urban healthcare internet operation solutions, internet hospitals, out-of-hospital prescription and DTP (Direct-to-Patient) services, health insurance products, and TPA (Third-Party Administrator) services.

Leveraging its advantages in internet technology, Yuanxin Technology has fully integrated medical services, pharmaceutical care services, and insurance services, connecting doctors, patients, pharmaceuticals, and insurers to build a “Medical–Patient–Pharmaceutical–Insurance” service ecosystem.

He Tao, Founder and CEO of Yuanxin Technology, stated that the company’s growth has been a process of dedicated industrial development and continuous expansion. As healthcare and pharmaceuticals are a serious industry, enterprises can only win customer recognition by providing more professional services. Therefore, Yuanxin Technology will remain focused on the “healthcare-pharmaceuticals-insurance” triad, delivering high-quality services to patients and partners.

Regarding this financing round, Hu Xubo, Managing Partner at Qiming Venture Partners, stated that Yuanxin Technology has been continuously exploring the use of internet technologies, healthcare, and insurance big data to improve the efficiency of medical services and reduce the costs of healthcare and medication. Since its inception, its core businesses—including Miaoshou Internet Hospital, Miaoshou Pharmacy Near Hospitals, and Yuanxin Huibao Insurance Services—have seen sustained development, constantly enhancing service quality and providing a better medical experience and health coverage for a large customer base.

In the long term, Yuanxin Technology aims to contribute to improving the efficiency of medical services in China, enhancing patients’ healthcare experience, and strengthening multi-tiered insurance coverage. Qiming Venture Partners believes that the new round of financing will support Yuanxin Technology in further enhancing its product and service capabilities for core businesses, as well as driving synergistic empowerment across the “healthcare–pharmaceuticals–insurance” ecosystem.

Gan Jianping, Founding Partner of QY Capital, stated that QY Capital highly recognizes Yuanxin Technology’s business model of building an integrated “doctor-patient-pharmacy-insurance” service ecosystem. The development of Yuanxin Technology’s “medical-pharmaceutical-insurance” triad requires not only professional expertise across each business line but also a high degree of cross-departmental synergy. QY Capital believes that Yuanxin Technology has established a highly professional and cohesive “iron army,” positioning it to become a key player in China’s internet healthcare and medication management sectors. Through its investment in Yuanxin Technology, QY Capital will continue to focus on technology-enabled health services.

CITIC Securities Investment stated that the Yuanxin Technology team, leveraging its profound understanding of the pharmaceutical industry and seizing the historical opportunities presented by the transformation of China’s healthcare system, has established an integrated service ecosystem linking pharmaceuticals and insurance. This system enables physicians to provide more efficient diagnosis and treatment, ensures more precise delivery of medications, and provides patients with more tangible healthcare security.

During the pandemic, we have deeply recognized the significant importance of establishing this system and witnessed the Yuanxin team’s rapid response and collaborative innovation capabilities. We believe that Yuanxin Technology’s comprehensive advantages in direct-operated hospital-adjacent pharmacies, internet hospitals, online pharmaceutical marketplaces, out-of-hospital prescription platforms, and health insurance services will enable it to maintain high-speed growth amidst the future trillion-yuan market for prescription outflow and the development of internet healthcare, thereby building an efficient, low-cost new medical ecosystem.

As an investment firm that has supported the company since its inception, Zhou Kui, Partner at Sequoia Capital, concluded by stating that Sequoia Capital was a seed-stage investor in Yuanxin Technology and has witnessed and supported every step of its development and growth since its establishment in 2015. From establishing hospital-adjacent and DTP (Direct-to-Patient) pharmacies to launching an internet hospital, and gradually forming a “medical-patient-pharmaceutical-insurance” service ecosystem, the Yuanxin team has consistently maintained strong entrepreneurial passion and keen business innovation capabilities. With a solid business foundation and innovative services, Yuanxin Technology has gained recognition from partners and earned the trust of users, achieving rapid growth over the past five years. Sequoia Capital will continue to work closely with Yuanxin Technology to support its further development and expansion.