Ming Yitang, a Traditional Chinese Medicine Plus Internet Healthcare Project Under Wenkang Group, Secures Tens of Millions of RMB in Series A Funding Amid Market Downturn

VCBeat (WeChat ID: vcbeat) has learned that Mingyitang, a traditional Chinese medicine (TCM) hospital project under the Winkang Group, recently announced the completion of its Series A financing round, raising tens of millions of RMB. The investment was led by Danlu Capital, and the funds will be primarily used to expand its offline chain of hospitals. Amidst the “capital winter” that has sent shivers down the spines of countless entrepreneurs, how did this TCM dark horse, Mingyitang, secure such rapid financing with its business model?

Chongqing Mingyitang Hospital, a key pillar in Winkang Group’s effort to build a closed-loop “big health industry chain,” began operations in October 2016. Against the backdrop of the national push to vigorously develop the health industry and traditional Chinese medicine (TCM), the hospital has accurately gauged the current economic landscape. Leveraging “traditional TCM + modern internet” as its core approach, it has continuously expanded its commercial footprint and aggressively developed the TCM health industry. The hospital is primarily positioned as an innovative, modern facility integrating TCM and Western medicine, offering TCM diagnosis and treatment, preventive care, health management, remote consultations, private physician services, and pharmaceutical research.

Mingyitang Hospital, with Traditional Chinese Medicine (TCM) as its primary specialty, has established key departments including TCM Oncology, Internal Medicine, Gynecology, Andrology, Dermatology, Pediatrics, Rehabilitation and Physiotherapy, and Health Management, in alignment with disciplinary development and societal needs. Catering to the health demands of modern individuals, the hospital leverages the big data advantages of Xunyi Wenyao Network, under the Wenkang Group, to comprehensively build a “Traditional TCM + Modern Internet” healthcare model, focusing on appointment-based consultations, sub-health regulation, and preventive health management.

Mingyitang Hospital positions its target market as a mid-to-high-end traditional Chinese medicine (TCM) clinical institution, developing into a premium TCM diagnosis, treatment, and wellness center specializing in TCM diagnosis and treatment of common and frequently occurring diseases among high-income populations, TCM conditioning for sub-health status, and health management.

On one hand, Mingyitang Hospital will create a humanistic, star-rated hospital environment tailored to mid-to-high-end clientele, introducing intelligent medical systems and the most advanced concepts in medical service. It will adopt a model in which an expert team provides end-to-end care for each individual patient, aiming to address key pain points in Chongqing’s healthcare market, such as long waiting times, difficulty in securing appointments with specialists, substandard medical environments, and weak service orientation.

On the other hand, the hospital’s service model adopts an integrated approach of Traditional Chinese Medicine (TCM) and health management. By implementing a membership system, it delivers convenient (online appointment scheduling for medical consultations and health management, customer service follow-ups), comfortable (VIP member services, VIP wards, one-on-one physician consultation), and reassuring (expert teams, cutting-edge technology, standardized management, with fees slightly higher than those of public hospitals but ensuring quality) TCM healthcare services.

As is well known, standardization is the foundation for scaling up and strengthening traditional Chinese medicine services.

In terms of clinical standards, Mingyitang Hospital aims to enhance the clinical efficacy of Traditional Chinese Medicine (TCM) and standardize the delivery of TCM medical technical services. To this end, it has developed diagnostic and treatment standards for TCM syndromes and diseases, focusing on common conditions, frequently occurring diseases, and major illnesses. Furthermore, Mingyitang Hospital has established rigorous technical standards for routine clinical procedures across various departments, including orthopedics and traumatology, tuina (therapeutic massage), and nursing, as well as for TCM-based preventive care, health preservation, and rehabilitation services.

In terms of traditional Chinese medicine (TCM) standards, Mingyitang Hospital focuses on improving the quality of TCM materials by establishing strict controls over authentic medicinal herbs, TCM processing techniques, TCM resource conservation, and quality control of TCM materials.

In terms of management standards, Mingyitang Hospital has established a comprehensive management standard system covering various aspects, including traditional Chinese medicine (TCM) medical services, education, scientific research, and international exchange and cooperation. It has formulated quality management standards and management standards for the medical quality monitoring system, which can be used to monitor the quality of TCM medical services in its chain of TCM clinics while enhancing the level of statistical analysis.

By establishing a series of standards, Mingyitang Hospital has developed a systematic and replicable traditional Chinese medicine (TCM) service model, creating a core engine for its future business growth.

It is reported that, following this round of financing, Mingyitang Hospital plans to open 10 chain hospitals in the core areas of Chongqing’s main urban districts and surrounding counties over the next two to three years. The initiative aims to establish the Mingyitang Hospital system as a base for the inheritance and innovation of traditional Chinese medicine (TCM) culture, a training center for senior professional titles in TCM, a national teleconsultation hub for major hospitals and healthcare institutions across China, a consultation center under the Chongqing Association of Traditional Chinese Medicine, a museum dedicated to the identification and use of authentic TCM materials, and a cradle for cultivating National TCM Masters in Chongqing.

In the future, we will expand our chain of traditional Chinese medicine (TCM) clinics nationwide, building on our existing network in Chongqing, to establish a TCM brand that is “leading in Chongqing, renowned in Southwest China, with a national presence and global influence.”

It is understood that Wenkang Group, founded in 2007, has grown over more than a decade into a leading one-stop comprehensive medical service platform and a provider of holistic solutions for the medical and broader health industry in China. Its business portfolio spans online medical platforms, regional smart healthcare, intelligent health management, pharmaceutical e-commerce platforms, internet hospitals, medical institution development, and health industry education. Leveraging its unique resource advantages and operational philosophy, Wenkang Group has successively garnered favor from prominent industrial investors.

In 2011, it received strategic investment from Yunfeng Capital, a fund initiated by more than a dozen Chinese business leaders including Jack Ma and Yu Feng. In 2014, it secured a new round of strategic investment led by Legend Holdings and CCB International. Currently, Winkon Group leverages advanced technologies such as the internet, cloud computing, big data, and smart medical devices to organically integrate patients, doctors, hospitals, and pharmaceutical companies, thereby establishing a comprehensive layout and ecosystem for the internet healthcare service industry chain.

Danlu Capital is a venture capital firm dedicated to the healthcare and medical industry. It was co-founded in early 2018 by Lu Qinchao, former Partner at Sequoia Capital China Fund, and Su Zhenbo, former Managing Partner of Fenxiang Investment Management. Headquartered in the CTF Finance Center in Zhujiang New Town, Guangzhou, its core team members all hail from renowned domestic venture capital funds, possessing profound insights into investment and industry dynamics, along with a strong track record of historical investment performance.