Yu Doctor Pediatrics, Southwest China's First Pediatric Clinic Chain, Secures Tens of Millions in Series A Funding Led by Sinopharm Capital

Recently, VCBeat (WeChat ID: vcbeat) learned that Chongqing Yuboshi Pediatric Chain (hereinafter referred to as “Yuboshi Pediatrics”) has completed a Series A financing round worth tens of millions of yuan, led by Sinopharm Capital, with Probe Capital serving as the exclusive financial advisor.

Following this round of financing,Zhuo Guangsong, Managing Director of Sinopharm Capital, will serve as a director of Dr. Yu Pediatrics.Dr. Yu Pediatrics will leverage its partnership model to attract more outstanding medical and operational talent, while continuously expanding its service offerings to include pediatric ophthalmology, dentistry, and psychological care, and scaling up its chain presence in the Southwest region.We aim to complete our layout in major cities across Southwest China within the next 3–5 years, becoming the leading pediatric brand in the region.

Dr. Yu Pediatrics has always been positioned to serve the community-based pediatric market in second- and third-tier cities. Established in 2016, it is a chain of specialized pediatric healthcare institutions that integrates health education with clinical services, underpinned by a foundation in preventive medicine.

Image source: Provided by the company

In less than two years, Dr. Yu Pediatric has opened eight pediatric clinics in Chongqing,Located in Qibo Aoyuan, Daping Times Paradise Walk, Shuijing Licheng, Huangnibang, Yudong, Dashiba, Nanping, and University Town respectively, each clinic covers an area of 300–400 square meters. All clinics provide general pediatric care and premium child health services as their foundation, and offer specialized specialties tailored to the demographic structure and needs of the surrounding communities, including growth and development assessment, pediatric asthma, pediatric dermatology, pediatric gait analysis, pediatric dentistry, and pediatric optometry.

What Drives the Rapid Growth of Yu Boshi Pediatrics? To Find Out, VCBeat Exclusively Interviewed Zhuo Guangsong, Managing Director of Sinopharm Capital, and Wang Yu, Founder of Yu Boshi Pediatrics.

In terms of pediatric medical resources, in addition to the nationwide supply-demand imbalance, there is also a severe structural imbalance, with resources concentrated in first-tier cities and eastern coastal cities. The contradiction between supply and demand is more prominent in central and western regions and second- and third-tier cities. Taking Chongqing as an example, the ratio of pediatricians per 1,000 children is 0.41, lower than the national average of 0.53.

With the relaxation of policies, capital from various sectors has increasingly favored private healthcare, particularly pediatric clinics. Pediatric clinics in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen have attracted greater investor attention, gradually established strong brand advantages, and generally positioned themselves in the high-end market segment.

By comparison, pediatric departments in China’s second- and third-tier cities have yet to establish strong brands, while it is challenging for branded chain pediatric clinics from first-tier cities to expand into these lower-tier markets. Therefore, second- and third-tier cities are poised to develop regionally dominant brands.

Meanwhile, 85% of pediatric outpatient visits are for common respiratory and digestive system conditions with clear diagnostic and treatment pathways, which can be fully managed in clinic settings.

Therefore, Wang Yu identified market demand and aimed to establish a community-based pediatric clinic dedicated to providing safe, efficient, convenient, and affordable diagnostic and treatment services to children within a 5-kilometer radius. She stated, “Driven by the surging demand in the pediatric market and the implementation of tiered diagnosis and treatment policies, pediatric clinics are characterized by their small scale, large quantity, and wide distribution. These features greatly facilitate medical access for children and provide inherent advantages in delivering primary pediatric healthcare services.”

This is the reason behind the establishment of Dr. Yu Pediatric Chain Clinics. Of course, Dr. Wang Yu’s prior experiences also accelerated the project’s launch. She served in the military for 23 years and has 18 years of clinical experience in pediatrics. She previously held the positions of Associate Chief Physician and Associate Professor in the Department of Pediatrics at the First Affiliated Hospital of the Third Military Medical University. Dr. Wang holds a Doctor of Medicine degree from Chongqing Medical University, serves as a committee member of the National Military Pediatric Critical Care Group, and has amassed nearly 200,000 followers on her self-media platform in Chongqing.

Mr. Zhuo Guangsong, Managing Director of Sinopharm Capital, stated, “We chose to partner with Dr. Wang Yu Pediatrics because we were drawn to three key attributes: First, its clear and highly scalable business model, which focuses on community-based pediatric care in second- and third-tier cities. Second, its genuine ‘patient-centric’ approach, driven by reputation, to deliver cost-effective and efficient children’s health management services. Third, its hybrid team combining technical expertise with operational excellence; Dr. Wang Yu is not only a Ph.D. holder but also a military veteran, known for his charismatic, approachable demeanor and remarkable resilience; meanwhile, his co-founder, Ms. Liu Ting, brings extensive experience in marketing and operations.”

During the initial phase of its launch, Dr. Yu Pediatric Clinic, like many other clinics, faced challenges in recruiting physicians and acquiring patients. Positioning itself as providing “Tier-3 hospital-level pediatricians right in your neighborhood,” the clinic adhered to building a full-time medical team primarily composed of physicians from Tier-3 hospitals, emphasizing both professional competence and service orientation.

Wang Yu stated that only by providing excellent support to physicians can they better serve patients. Yuboshi Pediatrics is committed to ensuring ample time for doctor-patient communication, allowing physicians to focus solely on medical care and deliver high-quality patient services. The company appoints senior nurses with at least ten years of experience in nursing and management as clinic managers, responsible for daily operations and customer service. Additionally, dedicated assistants are assigned to physicians to enhance their work efficiency and create a comfortable working environment for medical staff.

To attract more physicians from Grade A tertiary hospitals to join, the company has established a physician agent and partnership system.On one hand, we are continuously improving our training mechanisms to ensure comprehensive coverage across all aspects—from clinical skills and patient care to communication—and actively establishing standardized residency training systems in collaboration with public hospitals. On the other hand, we are further launching Version 2.0 of our partnership program, which features a tiered structure comprising city-level, regional, and store-level partners. This framework helps medical professionals realize their personal value through multiple dimensions, including operational rights, equity ownership, and dividend distribution.

Currently, Dr. Yu’s Pediatrics has assembled a medical team of over 25 physicians, promoting the “light healthcare” philosophy of “no injections, no IV infusions,” with 70% of its patients acquired through word-of-mouth referrals. Starting from pediatric diagnosis and treatment, the company has expanded into children’s health management, with nearly one-quarter of its revenue derived from non-medical sources.

In terms of customer acquisition, Wang Yu focuses on delivering public welfare lectures to promote the brand philosophy of Dr. Yu’s Pediatrics and popularize child healthcare knowledge. These sessions are held at venues such as corporations and shopping malls, with the aim of both enhancing brand influence and converting some attendees into clinic patients.Since 2016, more than 200 public welfare lectures have been conducted, providing child health education to approximately 50,000 families in Southwest China through online media, live streaming, and offline free clinic services.

Dr. Yu Pediatrics has continuously pursued standardization in its practice, evolving from a single clinic to a chain and initially establishing a centralized operational system. By developing standardized documentation covering site selection and expansion, team onboarding, marketing support, and medical quality control, the company has reduced the setup time for individual clinics to five months and achieved monthly break-even within 12 months of opening.

Sinopharm Capital was established in 2012 as a professional equity investment institution focused on the healthcare sector, initiated by Sinopharm Group. Its team comprises internal and external investment professionals from Sinopharm Group, assembled under market-oriented mechanisms. Leveraging extensive industry experience, the firm is committed to integrating industrial resources and capital strengths both within and outside Sinopharm Group, with assets under management exceeding RMB 6 billion. Its sponsor, China National Pharmaceutical Group (Sinopharm), is the largest pharmaceutical and health industry group in China, boasting the most complete industrial chain and the strongest comprehensive capabilities. It owns 11 wholly-owned or holding subsidiaries and six listed companies, reporting revenue of RMB 350 billion in 2017.

Sinopharm Capital adheres to a top-down investment philosophy. Among 16 core specialty areas, it has selected six specialties as the key focus for its initial phase of strategic deployment. The pediatric sector is characterized by prominent supply-demand imbalances, strong consumer attributes, and high scalability. Clinic site selection is the first and most critical step; urban layout, business format, market positioning, and product offerings are all key areas of focus.

“We are honored to have ultimately partnered with Dr. Yu Pediatrics during our top-down review process, establishing a long-term collaboration,” added Zhuo Guangsong.

Following its investment in Dr. Yu Pediatric Care, Sinopharm Capital will not only provide financial support but also accelerate the company’s upgrade and development in three key areas. First, it will assist the Dr. Yu Pediatric Care team in further refining its strategy and building its organizational structure to meet the needs of chain-based and group-oriented growth. Second, leveraging Sinopharm’s resources, it will support regional chain expansion. Third, it will foster synergy with Sinopharm’s pharmaceutical industry chain resources and the maternal and child health industry portfolio invested by Sinopharm Capital. Sinopharm Capital will accelerate its investments in the healthcare services sector.

With the advancement of the tiered diagnosis and treatment system, Sinopharm Capital believes that pediatric clinics will become a critical channel for hospitals to attract patient flow. Therefore, Zhuo Guangsong aims for Dr. Yu Pediatrics to consistently uphold its core philosophy and continuously expand its specialized service offerings; leverage the physician partnership model to recruit more talent; and accelerate its urban footprint through simultaneous new establishment and mergers and acquisitions, ultimately positioning itself as a primary gateway for children’s health management.