Gengmei App Secures $50 Million Series D1 Funding Led by Meitu, Ushering in a New Era of Beauty Integration

VCBeat (WeChat: vcbeat) has learned that on July 30, the Gengmei app announced the completion of a $50 million Series D1 financing round.The investors are Meitu Inc. and Daohe Fund of Funds., China Renaissance continued to serve as the exclusive financial advisor to Gengmei following its Series C financing round.

Gengmei was founded in 2013 and is committed to providing users with community, e-commerce, and financial services in the consumer healthcare sectors, including plastic surgery, minimally invasive procedures, dentistry, ophthalmology, and anti-aging treatments. By leveraging the internet to integrate content, social networking, and transactional components, Gengmei has achieved efficient user outreach, reshaped the consumer healthcare service industry chain, broken down information asymmetry, and significantly improved industry efficiency. The company’s operations have alreadyEntered a state of comprehensive profitability。

According to Deloitte’s “2017 China Medical Aesthetics Market Analysis Report,” the size of China’s medical aesthetics market was RMB 87 billion in 2015 and is projected to reach RMB 176 billion for the full year 2017. Analysts forecast that the market will grow to RMB 464 billion by 2020, representing a compound annual growth rate (CAGR) of 40%.

Liu Di, CEO of Gengmei, stated that as consumers born in the 1990s and 2000s rapidly enter the market, virtual beauty enhancement has become an essential need for internet users. Consumer demand is quickly translating from online to offline channels, and the medical aesthetics industry is poised to enter its true golden age over the next decade. As an online gateway for the medical aesthetics sector, Gengmei connects online traffic with offline providers. The company looks forward to collaborating with upstream and downstream enterprises in the industry to create a user-reputation-based medical aesthetics ecosystem, foster a consumer environment where quality drives out inferior offerings, and replicate the industry’s successful model across other consumer healthcare sectors, including dentistry, ophthalmology, obstetrics and gynecology, and anti-aging treatments.

This round of financing also reflects the capital market’s recognition of Gengmei as a “connector” among users, clinics, doctors, and manufacturers.Gengmei’s latest round of financing will be primarily allocated to AI technology R&D, team expansion, and geographic and category diversification., which also marks Gengmei's fifth round of financing since its establishment five years ago. Investors include Matrix Partners China, Sequoia Capital China, Tencent, Vivo Capital, CHJ Jewellery, China Securities Co., Ltd., Fosun Group, and Legend Capital, among others.

Meitu, the investor in Gengmei’s current funding round, boasts a top-tier matrix of fashion-conscious female users in China through its renowned software and hardware products, including Meitu Xiuxiu, BeautyCam, and Meitu smartphones. Both companies are positioned around “beauty and social interaction,” with their businesses being distinctly different yet interconnected and complementary.

As an investor in this round, Meitu expressed its expectation to achieve a win-win outcome through this strategic investment in Gengmei. Over the past decade, Meitu has leveraged advanced imaging technology to develop a series of software and hardware products, building a vast beauty ecosystem. Meanwhile, Gengmei, as a new force entering the medical aesthetics industry from the internet sector, has gradually established a mature brand and strong consumer recognition. This strategic investment by Meitu will empower Gengmei and provide significant support, both in terms of capital and technology.

Regarding this transaction, Dong Mengyuan, Vice President of China Renaissance, stated: “China’s RMB 100-billion-level medical aesthetics market is still in its early stages and holds immense growth potential. Since 2013, Gengmei has been deeply committed to the internet-based medical aesthetics and consumer healthcare sectors. By leveraging its community-driven model, the company has steadily accumulated a large base of loyal users and high-quality user-generated content (UGC), while simultaneously refining its resources on the hospital and physician sides. It has established robust partnerships with leading players in the plastic surgery industry, including public hospitals, specialized departments, and medical associations. With rapid expansion in both its user base and revenue scale, and bolstered by the significant injection of strategic resources, Gengmei will continue to secure high-quality traffic, diversify its service offerings, and enhance its technological capabilities, reaching new heights.”

In addition to the capital level, Gengmei will also introduce the imaging technology and big data technology that Meitu has accumulated over a long period.Establishing an Intelligent Engine for Medical Aesthetics. This engine helps tens of millions of users obtain personalized appearance reports and aesthetic recommendations by uploading photos and videos, while also recommending the most suitable medical aesthetic procedures, clinics, and doctors.

Liu Di stated that Gengmei had already initiated relevant research and development efforts in 2017. Meitu’s technological expertise and data accumulation will help Gengmei more efficiently accelerate the integration of online virtual beauty enhancement with offline real-world aesthetic procedures, reflecting Chinese women’s relentless pursuit of beauty.

VCBeat will continue to monitor and interpret the stories behind the financing.