Yaodou Network Secures Tens of Millions in Series A1 Funding Led by Haizhikang Healthcare Fund

[VCBeat (WeChat: vcbeat) Exclusive] On September 3, pharmaceutical B2B platform Yaodou.com confirmed the completion of its A1 round financing, amounting to tens of millions of RMB. This round was solely invested by Haizhikang Medical Health Fund.

Qiu Zhongxun, Founder and CEO of Yaodou.com, stated to VCBeat that over the past three years since its inception, Yaodou.com has been deeply committed to integrating offline and online services, with a consistent focus on business development. Currently, Yaodou.com’s business model has been validated, and the platform is well-positioned for rapid growth in terms of technology, team building, and infrastructure. Yaodou.com now covers more than 200,000 terminal outlets, with its annual GMV approaching RMB 10 billion, and the company has already achieved profitability in 2017.

Previously, VCBeat published a detailed report on Yaodou.com. (Integrating Traditional Medicine with E-Commerce, Yaodou.com Is Emerging as a New Gateway to the Pharmaceutical Industry）

Yaodou.com (National A20160008), a subsidiary of Beijing Yaodou Technology Co., Ltd., is a professional smart pharmaceutical new retail platform jointly developed by the Zhongguancun Medical Engineering Translation Center and Beijing Yaodou Technology. Established in 2015, the company has a registered capital of RMB 50 million and was co-led by the Zhongguancun Medical Translation Fund and the Zhongbo Pharmaceutical Industry Fund.

After three years of rapid development, Yaodou.com has established a comprehensive online service platform encompassing the B2B professional pharmaceutical trading platform (one of the first enterprises in China to obtain an A-Class Internet Drug Transaction Service Qualification Certificate), the Yaodou Health O2O medication management platform (China’s first advisory-style pharmaceutical expert medication platform), and Yaodou Software (including pharmaceutical ERP, GPO systems, and big data systems). Meanwhile, it has set up operational subsidiaries in nearly ten provinces and municipalities, including Beijing, Chongqing, and Jiangsu, and has acquired controlling stakes in local pharmaceutical distribution enterprises and pharmacy chain businesses.

Yaodou Technology is one of the few internet pharmaceutical platforms in China to hold full qualifications, including Internet Drug Transaction Service Licenses A, B, and C. It has also accumulated six patents for internet pharmaceutical technologies and more than 30 national-level software intellectual property rights.

Yaodou.com currently offers over 100,000 pharmaceutical and healthcare products, with business coverage across China. It has established branches or wholly-owned pharmaceutical commercial companies in various provinces and municipalities, and has formed strategic partnerships with more than 1,000 renowned industrial and commercial enterprises, including Sinopharm Group, Jiashitang, Tongrentang, Kuifa Pharmaceutical, and Zhendong Pharma. In 2016, the platform’s gross merchandise volume (GMV) exceeded RMB 1 billion, and in 2017, it reached the RMB 10 billion level.

From an industry development perspective, by the end of 2017, the market size of China’s pharmaceutical sales terminals had reached RMB 1.6 trillion, with a compound annual growth rate (CAGR) of 12.6% over the previous five years, demonstrating a trend of rapid growth. However, during the same period, the market size of China’s pharmaceutical e-commerce sector was only RMB 121.1 billion, accounting for 7.4% of the total pharmaceutical sales terminal market, indicating substantial room for future expansion.

In recent years, B2B pharmaceutical e-commerce has attracted significant attention. Traditional distribution companies and internet enterprises have actively entered the market, giving rise to leading platforms such as Jointown.com, Yiyao Gou, My Pharmaceutical Network, Drug Terminal Network, Yaodou.com, Yaoshibang, and Weiming Penguin. Driven by supportive policies and continued capital investment, the pharmaceutical distribution industry is undergoing intelligent transformation. Looking ahead, B2B pharmaceutical e-commerce platforms will continue to present substantial growth opportunities.