Baofu Tongcheng Secures Nearly $10M in Series A+ Funding to Expand Its Dental-Focused HMO Network and Files IPO Prospectus

VCBeat (WeChat ID: vcbeat) has learned that Ningbo Baofu Tongcheng Health Management Co., Ltd. (“Baofu Tongcheng”) recently secured nearly $10 million in its Series A+ financing round. The investor was MindWorks Ventures Concept Capital, with Shanjing Capital serving as the exclusive financial advisor for this round. Previously, Baofu Tongcheng had completed two rounds of financing: an angel round invested by Qingliu Capital in 2016, and a Series A round led by Hongdao Capital with participation from Qingliu Capital in 2017.

Xie Yi, founder of Ningbo Baofu Tongcheng Health Management Co., Ltd., stated that this round of financing will be used in mainland ChinaThe dental insurance medical service network continues to expand in first- and second-tier cities, while also penetrating into third- and fourth-tier cities in economically developed regions., sign partnerships with more national, regional, and local insurance companies, continue to penetrate advanced and cost-effective dental medical insurance to a broader population, and achieve breakthroughs in single-disease medical insurance within the domestic middle-class health insurance upgrade industry.

Furthermore, the company plans to enter the Hong Kong, China market in the second half of the year, gradually expanding its dental insurance and healthcare platform across major Asian countries and regions with significant middle-class populations.

Baofu Tongcheng, established in 2017 (formerly known as Shanghai Baofutong Information Technology Co., Ltd.), is a third-party medical health management and insurance technology services company leveraging big data and AI technologies. It provides highly intelligent operational systems and comprehensive solutions for insurance, finance, healthcare, and online-to-offline sales channels, while also building a nationwide dental medical service network.

Leveraging its data-driven AI capabilities, the team has independently developed a dental HMO healthcare solution.Provides AI-powered health insurance claims processing systems and direct billing insurance systems, among others.. The company is currently operatingQuan Chi Jian Systemis China's leading end-to-end operational management system for dental medical insurance, trulyAchieve closed-loop management across the entire process, including actuarial services, underwriting, claims adjudication, loss adjustment, medical necessity monitoring, and direct-billing claims settlement., benchmarking against the United StatesThe North American Dental Insurance Operator System Represented by Delta Dental。

Quan Chi Jian System. Image source: Provided by the company.

Currently, China’s health insurance industry is in a phase of rapid growth, with a market size of approximately RMB 700 billion and a compound annual growth rate of 27%. However, due to challenges such as the authenticity of medical data and the lack of real-time interoperability across cross-industry systems, the market continues to face pressing pain points that require urgent resolution, including difficulties in product design, cost containment, high operational costs, and fraud prevention.

Baofu Tongcheng, grounded in the current state of China’s domestic industry and backed by a team with over a decade of deep operational expertise, has identified a breakthrough to address industry challenges by starting with a single-disease focus: intraoral dental care. It provides cost-effective dental medical insurance products to the broad middle-class population in China’s dental healthcare sector, which is not covered by social security.

Ningbo Baofu Tongcheng Health Management Co., Ltd. has signed contracts with thousands of domestic dental chain institutions. Image source: Provided by the company

Ningbo Baofu Tongcheng Health Management Co., Ltd. has already partnered withSigned by Thousands of Domestic Dental Chain Institutions, achieving nationwide coverage of dental medical service networks. Meanwhile, through signed partnerships with over 20 large insurance companies, we jointly design and operate more than 60 dental medical insurance products. The target customer base consists primarily of middle-class and above households, focusing on adolescents, women, and the elderly, with annual premiums currently reaching tens of millions of yuan.

Liu Feng, co-founder of Ningbo Baofu Tongcheng Health Management Co., Ltd., stated that the company’s next development focus will beFurther enhance the intelligent service experience for client and sales platforms, and further segment dental insurance products., expand the medical network and insurance company sales channels, and expand the supply chain for high-end dental treatment products. The company's future development goal is to become China's largest third-party service platform for dental insurance.

Mr. Zhang Ruiqi, Partner at MindWorks Ventures Concept Capital Management, stated that the accelerated development of commercial health insurance in China is an inevitable trend. This presents significant opportunities for startups in the industry while also posing substantial challenges to their industry understanding and operational capabilities. As a Chinese insurtech company, Ningbo Baofu Tongcheng Health Management Co., Ltd. boasts extensive experience and exceptional expertise in both insurance operations and data technology. By entering the market through highly standardized single-disease dental care, the company has demonstrated outstanding performance in enhancing the level of managed dental healthcare services and rationalizing claims cost control.

MindWorks Ventures is optimistic about the future development of Ningbo Baofu Tongcheng Health Management Co., Ltd. and firmly believes that commercial medical insurance can drive healthcare services back to their roots, ultimately becoming a powerful force in China’s healthcare reform. We also believe that as Ningbo Baofu Tongcheng expands its business into Hong Kong, it will further accelerate the replication and expansion of its successful dental insurance model.