B2B Medical Device Leader Vedeng Medical Completes Hundred-Million-Yuan Series B Funding Round to Build a Full-Industry-Chain Ecosystem
VCBeat (WeChat ID: vcbeat) has learned that Nanjing Vedeng Medical Co., Ltd. (“Vedeng Medical”), a leading digital medical device supply chain service platform in China and the B2B leader in specialized segments of the medical device industry, recently completed a Series B financing round worth hundreds of millions of RMB, led by Sinovation Ventures, a top-tier domestic VC firm. iBanker Capital served as the exclusive financial advisor to Vedeng Medical in this transaction.
Against the backdrop of a severe domestic investment climate, this financing round underscores the full recognition by China’s top-tier star funds of Vedeng Medical’s leading position and growth potential in the medical device distribution sector.Following this round of financing, Nanjing Vedeng Medical Co., Ltd. will accelerate the digital, online, and intelligent upgrading of its supply chain platform, deepen its localized service layout, and continuously integrate and optimize its upstream supply chain. The company will strengthen middle-office capabilities in logistics and warehousing, after-sales service, and marketing, while continuously expanding product category coverage. Furthermore, it will explore expansion into specialized niche markets and overseas markets, ultimately building an internet-based circulation service ecosystem for medical devices that spans the entire industry chain.
Prior to this, Vedeng Medical had secured multiple rounds of investment from leading investors in the healthcare and industrial internet sectors, including Yuanyi Capital, Oriental Fortune Capital, Puhua Capital, Zhongwei Fund, Fenxiang Investment, Pengrui Investment, and angel investor Cai Jingzhong.
Officially entering the medical device distribution sector in 2015, Nanjing Vedeng Medical Co., Ltd. (Vedeng Medical) has adhered to its long-standing mission of “making medical device procurement simpler.” In response to prevalent issues in China’s medical device distribution industry—such as a fragmented landscape with numerous small and disorganized operators, traditional and inefficient procurement and sales models, information asymmetry, and opaque pricing—Vedeng Medical has leveraged a self-operated B2B business model and comprehensive digitalization and online integration. This approach connects upstream medical device manufacturers with downstream distributors and end-user healthcare institutions, breaking down information barriers and optimizing supply chain resources. By providing cost-effective medical device products to private and primary healthcare institutions, Vedeng Medical is effectively driving down societal healthcare costs while enhancing service quality.
In terms of the breadth of medical device supply chain coverageAfter more than five years of deep industry engagement, Nanjing Vedeng Medical Co., Ltd. has established close strategic partnerships with over 300 renowned domestic and international brands, including Mindray, GE, 3M, B. Braun, Yuwell, Aeonmed, and Zhende, offering a curated selection of more than 20,000 SKUs on its platform. Meanwhile, the company has built China’s only channel network covering 970,000 grassroots and private healthcare clients. By empowering traditional distributors through robust mid-office capabilities—such as a strong supply chain system, efficient logistics and warehousing, professional after-sales service, and flexible supply chain finance solutions—the company currently collaborates with over 10,000 active distributor clients across more than 300 prefecture-level cities and 2,500 districts and counties nationwide. Concurrently, the company is rapidly expanding into the private healthcare institution market through a direct-operation model, having already partnered with 12,000 various new-type private medical institutions, including private hospitals, clinics, third-party medical organizations, health examination centers, and internet healthcare providers. The company’s cross-border e-commerce business for medical products has now expanded to more than 20 countries and regions worldwide.
Nanjing Vedeng Medical Co., Ltd. places high importance on building its system capabilities and has initially established a comprehensive digital foundation, including front-end marketing and procurement systems, middle-office systems for logistics and after-sales service, and back-end product databases. The company’s online platforms—“Vedeng Mall” for distributors and “Yixiegou” for private medical institutions—are becoming the primary channels for downstream customers to place orders. In recent years, the company has achieved sustained rapid growth in sales revenue, continuous improvement in gross profit margins, and has attained overall profitability.
Rather than customer coverage, Ding Haibo stated that he is more gratified by Vedeng Medical’s performance in recent years regarding customer retention and recognition.
Ding Haibo, CEO of Vedeng Medical, stated, “In 2019, Vedeng Medical’s online transaction rate for end customers exceeded 90%, while the online adoption rate among distributor customers approached 30%. Our warehousing and logistics centers expanded from one to six, enabling increasingly faster delivery to customers across China. In terms of after-sales capabilities, we are now able to handle the majority of after-sales services in-house. These achievements not only signify the rapid advancement of our business modules but also truly demonstrate that Vedeng’s digital capabilities, channel capabilities, and supply chain capabilities have systematically evolved into a closed-loop ecosystem, establishing a sustainable logic for endogenous growth.”
On Building Deep Service Capabilities in the Medical Device Supply ChainNanjing Vedeng Medical Co., Ltd. adheres to a service-intensive strategy, leveraging its self-operated integrated supply chain and independently built warehousing and logistics centers to establish comprehensive integrated supply capabilities. It provides end customers with a one-stop integrated procurement platform, covering the entire lifecycle of medical device products—from marketing, after-sales service, warehousing, distribution, and clinical services to supply chain finance.
Ding Haibo, CEO of Vedeng Medical, stated, “Choosing this model is undoubtedly a challenging path. The medical device industry is characterized by high barriers and entry thresholds, with procurement processes and supply chain requirements varying significantly across different segments. For instance, the supply chain requirements for medical aesthetics, dentistry, and general hospitals are entirely distinct. This necessitates that Vedeng, while solidifying its digital capabilities, supply chain management, and warehousing and logistics infrastructure, adopt a strategy of ‘accumulating resources and building strong defenses’ to achieve breakthroughs and broader coverage in more specialized medical device fields.”
The advantages of this model were also evident during the sudden onset of the COVID-19 pandemic.
As early as January 25, Vedeng Medical Supply Chain responded comprehensively to the epidemic by leveraging its substantial spot inventory in Vedeng Medical warehouses and rapidly integrating high-quality supply chain resources both domestically and internationally. Giving full play to its robust supply chain assurance capabilities, the company has been actively engaged on the front lines of the global fight against the pandemic. During the Spring Festival holiday, relevant teams at the company voluntarily gave up their time off to spare no effort in ensuring the supply of emergency materials and made a commitment not to raise prices for in-stock items. They secured large quantities of anti-epidemic supplies, including masks, infrared thermometers, and ventilators, for domestic medical institutions. During this period, order volumes on the online procurement platform, “Vedeng Mall,” repeatedly hit record highs.
In the long run, the short-term surge in demand brought about by the pandemic has also profoundly changed user behavior, with more people adopting online transactions in the future. Short-term demand has accelerated the evolution of long-term trends.
Regarding the impact of the epidemic on the future development of medical devices, Ding Haibo, CEO of Vedeng Medical, stated: “The epidemic has led to an explosive growth in pseudo-demand for medical device procurement, while the traditional supply model for medical devices has failed to respond rapidly. The distribution of medical devices in China is evolving in two directions: First, digital transaction service platforms are gradually becoming the trend, as digital online transactions offer higher efficiency and better decision-making. Under the epidemic, user behavior has been profoundly changed, with more transactions shifting online. Second, the industry is accelerating its consolidation, and integrated comprehensive supply platforms will become the mainstream.”
Regarding this successful financing round, Ding Haibo, CEO of Nanjing Vedeng Medical Co., Ltd., stated: “The healthcare industry is poised to become the largest conduit for social wealth accumulation in China over the next two decades. Medical devices—characterized by diverse categories, ample supply, robust quality, and high cost-effectiveness—are a critical component of high-quality medical services. Currently, the market size of China’s medical device distribution sector has surpassed RMB 1 trillion, maintaining a rapid annual growth rate of 20%. Driven by policies such as tiered diagnosis and treatment and the encouragement of private healthcare provision, the vast grassroots and private healthcare markets have emerged as a blue ocean of incremental growth for the medical device distribution industry.”
Meanwhile, the traditional distribution model for medical devices is outdated and inefficient, creating numerous pain points for brand manufacturers, distributors at various levels, and healthcare service providers across the industry chain. Brand manufacturers urgently need to strengthen their sales coverage in grassroots and private-sector markets; sub-terminal distributors suffer from small operational scales and inadequate comprehensive service capabilities; and a vast number of grassroots and private medical institutions generally lack procurement channels for medical devices that are “multi-product, fast, high-quality, and cost-effective.” The industry’s sustained development and structural transformation will inevitably give rise to new data- and technology-driven medical device distribution service platforms. Focusing on serving the grassroots and private healthcare markets, Nanjing Vedeng Medical Co., Ltd. (“Vedeng Medical”) has, through years of deep cultivation of supply chain resources, market expansion, and continuous digital capability building, initially emerged as a leader among self-operated B2B platforms for medical devices.
“Looking ahead, Vedeng is committed to building a hundred-billion-yuan internet-based circulation service ecosystem for medical devices. By forging deep collaborations with brand manufacturers and fully empowering high-value distribution enterprises, we aim to help millions of various healthcare institutions reduce costs and improve efficiency, thereby making high-quality, affordable medical services accessible to the broadest population across China.”
It is worth noting that in response to the global COVID-19 pandemic, Vedeng Medical has fully demonstrated its social responsibility as a novel distribution service provider for medical devices, leveraging its robust supply chain capabilities to actively operate on the front lines of the global fight against the epidemic. As the international situation worsened, Vedeng Medical launched its international platform (VedengMedical.com) in early March, providing integrated supply solutions and a comprehensive range of high-quality medical products to combat COVID-19 for end customers worldwide, including governments, embassies, hospitals, foundations, enterprises, and importers. By the end of April, Vedeng Medical had supplied tens of thousands of anti-epidemic devices and materials to countries and institutions such as the United Kingdom, Spain, the United Arab Emirates, Italy, Iran, Nigeria, and the World Bank, becoming a strategic supplier of medical supplies for multiple national governments. The company’s advantages in response speed and operational efficiency over traditional distributors, along with its supply chain assurance capabilities, were fully showcased during this global health crisis.
Commenting on this investment, Dr. Kai-Fu Lee, Chairman and CEO of Sinovation Ventures, stated: “Vedeng Medical has cultivated the grassroots and private healthcare markets for many years, boasting significant advantages in medical device supply chain resources. It has established a nationwide channel network covering sub-terminal distributors and healthcare institutions. China’s vast healthcare market holds immense potential for technological innovation and efficiency improvements. We were deeply impressed by Mr. Ding Haibo, the company’s CEO, for his broad strategic vision, as well as by the team’s strong execution capabilities. We are optimistic about Vedeng Medical’s development into an innovative digital medical device supply chain platform that will continue to drive transformation in China’s grassroots healthcare market. We believe Vedeng Medical can leverage technology and data to propel sustained change in the traditional medical device distribution market. Sinovation Ventures is pleased to support Vedeng’s next phase of growth and has high expectations for the company’s internet integration, data-driven operations, and international expansion.”
Mr. Li Gang, Partner in the Healthcare Sector at Capital 360 and financial advisor for this financing round, stated: “All sectors of China’s economy are facing significant opportunities for transformation through industrial internet integration. The medical device distribution market, characterized by its large scale, rapid growth, and substantial potential for digital transformation, represents an excellent investment track within the industrial internet space. Vedeng Medical is undoubtedly a leading enterprise in this field. Under the leadership of Mr. Ding, the team has deeply cultivated the industry for many years, demonstrating strong execution capabilities and building formidable competitive barriers in upstream supply chain development and downstream channel expansion. With the platform’s transaction volume continuing to grow rapidly, Vedeng Medical is poised to evolve into an ecosystem platform akin to Alibaba within the medical device distribution sector. Capital 360 is honored to have assisted Vedeng Medical in completing this financing round and is confident in its long-term commitment to supporting the company’s growth into a leader in the healthcare industrial internet sector.”