YaoshiBang Secures RMB 420 Million Series C Funding with Participation from DCM, Shunwei, and SIG

Image provided by Yaoshibang

On June 14, 2018, Yaoshibang publicly announced that it had recently completed a Series C financing round totaling RMB 420 million. Chongying Capital served as the exclusive financial advisor for this round. The Series C1 tranche was led by Shunwei Capital, with Sinopharm Capital and Gaojie Capital participating as co-investors; the Series C2 tranche was led by DCM Ventures, with SIG participating as a co-investor. Its previous Series B financing round, amounting to RMB 110 million, was completed in late 2016 and was led by Sinopharm Capital and Fosun Group.

As of now, Yaoshibang's total financing has exceeded RMB 600 million.

Zhang Buzhen, Founder and CEO of Yaoshibang, stated that after three years of development, Yaoshibang’s business model has been validated, and the platform is well-positioned for rapid growth in terms of technology and team building. The platform serves over 150,000 active end-users, with monthly gross merchandise volume (GMV) exceeding RMB 500 million, and annual GMV is projected to reach the ten-billion-yuan scale.

Image provided by Yaoshibang

Shunwei Capital focuses primarily on mobile internet and smart hardware, with a particular emphasis on how the internet and technology transform traditional industries and services. It mainly invests in high-quality startups in their early and growth stages. Its investment portfolio includes Xiaomi, iQIYI, Meicai, 17zuoye, Kuaishou, and others.

Cheng Tian, Partner at Shunwei Capital, stated, “Shunwei Capital has long focused on and remained optimistic about the opportunities for the internet to disrupt traditional industries and various distribution sectors. Among these, the pharmaceutical distribution market is a high-growth, trillion-yuan-scale market, where the broader environment of the ‘Two-Invoice System’ and the separation of prescribing from dispensing will bring significant structural opportunities. The Yaoshibang team boasts extensive experience in the pharmaceutical distribution sector, has addressed core needs within the industry chain, and established a strong reputation and industry standing. Shunwei Capital is highly bullish on Yaoshibang’s future growth potential.”

DCM Ventures, the lead investor in Yaoshibang’s C2 round, is a top-tier venture capital firm. Founded in the United States in 1996, DCM focuses on early-stage investments and manages eight funds with over $3 billion in assets under management. It has invested in more than 300 high-tech companies across the U.S. and Asia. Its portfolio includes Kuaishou, 58.com, BitAuto, Vipshop, Tuniu, 51Talk, and Huochebang.

Lin Xinhe, Managing Partner at DCM, stated, “DCM is optimistic about the opportunities to enhance the efficiency of traditional industries through the Internet and has made strategic investments in multiple related sectors. The pharmaceutical distribution market is vast yet highly fragmented, presenting significant potential for internet-driven transformation and efficiency improvements. The Yaoshibang team features a cross-disciplinary combination of top talent from both the pharmaceutical distribution and internet industries. We believe there is substantial promise in this market.” Lin Xinhe was named to Forbes’ 2017 “Midas List” as one of the 11 investors from China.

Co-investor SIG Asia Investments entered China in 2005. For over a decade, it has focused on sectors such as the internet and consumer industries. With a venture capital fund size exceeding USD 1 billion, SIG has invested in more than 200 companies. Its notable portfolio companies include Toutiao, Bona Film Group, Himalaya, Babytree, Cheetah Mobile (Chubao), and PPDAI. In the B2B sector, its investments include Zhaoyou.com, HuiXiadan, Yihua, Haoqipei, Huasuhui, MiaoJia, and Zhaoguanche.

Co-investor Shenhewei Capital, which also led the Series B financing round for Yaoshibang, is a specialized venture capital investment management firm established in 2007 by Shenzhen-Hong Kong Industry-Academia-Research Venture Capital Co., Ltd. Its management team boasts over 15 years of experience in venture capital and private equity, with extensive industry background and expertise in capital operations.

Songhe Capital currently manages over RMB 15 billion in assets under management, having invested in more than 360 companies to date. Its investment portfolio spans multiple sectors, including new energy, new materials, healthcare, pan-entertainment, TMT, and advanced manufacturing. Notable investments include BGI Group, iCarbonX, KuanYuan Gene, and Kintor Pharmaceutical.

Co-investor Gaojie Capital, established in 2010, has a latest fund, “Shenzhen Gaojie Smart Equity Investment Fund Partnership (Limited Partnership),” with a scale exceeding RMB 1 billion. Gaojie Capital is a professional private equity investment management firm, focusing on investing in companies in fields such as artificial intelligence, smart manufacturing, semiconductors, new energy vehicles, and intelligent technology finance.