Duodianyun Secures Tens of Millions in Series A Funding to Expand Its Multi-Practice Platform for Dentists Nationwide

VCBeat (WeChat: vcbeat) reports that Beijing Haoyun Technology Co., Ltd. (hereinafter referred to as “Duodianyun”) has recently completed a Series A financing round worth tens of millions of yuan, with exclusive investment from Baoshihua Medical Group.

Duodian Cloud, established in 2017, is a platform designed to support dentists in independent and multi-site practice. By integrating clinical room resources from private dental institutions, it enables dentists to pursue independent and multi-site practices. Duodian Cloud provides comprehensive services for dentists, including auxiliary staffing, consumables supply chain management, information technology systems, financial and tax settlement, and patient management.

As of now, the Duodian Cloud Platform primarily covers the Beijing area and plans to complete its deployment in major first- and second-tier cities within the next one to two years. The platform currently has over 1,000 registered physicians, approximately 50% of whom are actively practicing. It is reported that the Duodian Cloud APP was launched in December 2017, achieved RMB 50 million in revenue and reached break-even in 2018, and exceeded RMB 10 million in monthly revenue in 2019.

Physicians are the core resources of healthcare. Duodian Cloud centers its services on physicians, providing comprehensive solutions for independent and multi-site practice by building a dedicated platform. This enables physicians to easily conduct their practices and receive substantial incentives, while simultaneously helping private medical institutions improve the utilization rates of their facilities and equipment.

“Compared with physicians in internal medicine and surgery, those in consumer-oriented healthcare are more inclined to start their own businesses.” Therefore, Duodian Cloud has chosen the dental specialty as its entry point to help dentists easily achieve entrepreneurial independence. The Duodian Cloud model is essentially based on DSOs (Dental Service Organizations), which are management companies that provide non-clinical operational support services to dentists and dental clinics and have already matured in developed dental markets. Duodian Cloud adapts to the characteristics of the Chinese market to create a localized DSO platform.

In terms of specific services for doctors, all personnel currently assisting physicians are exclusive employees of Duodianyun. These services are specifically designed to support dentists in multi-site and independent practice, ensuring the satisfaction of both doctors and patients.

In terms of acquiring physician resources, Duodian Cloud has established in-depth collaborations with various dental training institutions and manufacturers, leveraging its own pool of dental practitioners to provide instructor-led content services. To date, the platform has amassed a database comprising tens of thousands of dentists across China, laying a solid foundation for its future development.

Liu Wei candidly stated that while Duodian Cloud has already achieved financial self-sustainability, Baoshihua Medical Group’s extensive experience in the healthcare industry can help Duodian Cloud further enhance its service quality and professional expertise. This aligns with Duodian Cloud’s objectives for seeking collaboration.

During its fundraising efforts, Duodian Cloud earned the recognition of Baoshihua Medical Group thanks to its profound understanding of physicians’ needs and its efficient execution, leading both parties to commit to helping more physicians gain respect and rewards.

Liu Wei told reporters that the funds from this round will mainly be used for the following three purposes:

First, major upgrades to software and hardware. Duodianyun will add and upgrade equipment and devices at partner institutions to enhance their hardware quality, better meeting physicians’ needs; meanwhile, Duodianyun will continuously iterate its online products to improve physicians’ experience and efficiency;

Second, Deepening of Services. Strengthen professional training for service personnel, continuously improve medical quality, optimize service workflows for both physicians and patients, and enhance satisfaction among physicians and patients.

Third, expansion of partner institutions.

Zhang Hui, Deputy General Manager of Gem Flower Healthcare Group, stated, “Dentistry is a key specialty area for Gem Flower Healthcare Group. The Group believes that the DSO model will help it achieve overtaking on a bend in the dental industry. After screening and comparison, Gem Flower Healthcare Group chose to invest in the Duodianyun team, given their profound understanding of the DSO model and demonstrated operational efficiency.”

In terms of the team, CEO Liu Wei, a graduate of Renmin University of China, brings ten years of experience in the dental healthcare industry and is a serial entrepreneur in this field. Co-founder Peng Yao, a Tsinghua University alumna, oversees operations, finance, and fundraising, leveraging her seven years of prior investment experience in the TMT and healthcare sectors.

Zhang Hui emphasized that Baoshihua Medical can generate strong synergies with Duodian Cloud, as Baoshihua Medical’s extensive industry resources, market resources, and healthcare management experience can provide substantial support to Duodian Cloud.

Gem Flower Healthcare Group is a specialized healthcare industry platform established by CNPC through the Haixia Energy Industry Fund by leveraging social capital. By integrating CNPC’s relevant healthcare assets, Gem Flower Healthcare Group has grown into a healthcare industry group comprising seven tertiary hospitals and over 160 medical institutions, with annual operating revenue reaching RMB 10 billion, management of tens of thousands of hospital beds, provision of healthcare services to more than 4 million employees and dependents of the petroleum industry, as well as over 10 million residents in surrounding areas.

Jianyi Club served as the financial advisor for the Duodianyun project. Established in November 2011, Jianyi Club is a builder of the ecosystem within China’s venture capital community and currently stands as the most active primary market investor community in the country. It provides various pro bono services to investors and enhances the competitiveness of startups through financial advisory (FA), investment promotion consulting, and business training, tailored to the needs of enterprises at different industry stages, thereby achieving a win-win outcome for both investors and startups. Since 2018, more than 20 deals introduced by Jianyi Club have successfully secured financing; it has collaborated with over 20 government bodies and industrial parks, successfully landing two projects within six months; and in 2019, it successfully assisted four projects in completing their financing rounds.