LyncMed Secures Over RMB 110 Million in Series A+ and B Funding to Build the 'Amazon of Medical Devices'

VCBeat (WeChat ID: vcbeat) has learned, April 2, 2018, S2B2C Platform for Overseas Expansion of Medical DevicesUnited Medical HealthcareAnnounced the consecutive completion of its Series A+ and Series B financing rounds, led by Yunqi Partners, Chunxiao Capital, and Morningside Venture Capital, respectively, with follow-on investments from Intco Medical and existing shareholders, as well as bank credit facilities. The total financing amount exceeded RMB 110 million.

As early as April 2016, Lianyi Medical secured tens of millions of yuan in angel-round financing from Lingyi Chuangzao and Maker Headquarters. In August of the same year, it raised several million US dollars in Pre-A round financing, jointly invested by Mingshi Capital, ZhenFund, and Dongchen Investment. On August 4, 2017, Lianyi Medical announced the completion of its A-round financing, amounting to tens of millions of yuan, with Galaxy Ventures and angel investor Wang Gang as the investors at that time.

Lianyi Medical was established on December 29, 2015, as an S2b2C platform that entered the market by aiming to enhance the supply chain efficiency of China’s medical consumables exports. Over the past two years of development,The company aspires to become the “Amazon” of the medical device industry.

Given the specialized nature and high standards of medical devices, Lianyi Medical has chosen to enter the market through its most capital-intensive and complex proprietary operations. All key processes—including supplier selection, quality control, regulatory registration, coordination of cross-border multimodal logistics, overseas local warehousing, international settlement, on-the-ground promotion, and IT system development—are handled entirely by in-house teams. Additionally, Lianyi Medical is collaborating with other manufacturers to establish its own private-label brands.

Lianyi Medical Overseas Warehouse

Currently, the United Medical Platform hosts 20,000 SKUs across ten product lines, including surgical packs, rehabilitation products, polymer-based products, and sterilized products. Class I and II medical consumables remain the primary sales drivers, complemented by a small selection of Class III high-value consumables and small, standardized medical devices. The platform has connected with over 200 domestic medical device and consumable manufacturers upstream, and more than 300 overseas distributors and 3,000 healthcare end-user institutions downstream.

Lianyi Medical has achieved full-network operations and online data integration. Upstream, it connects with factories via mini-programs, while downstream, it leverages a SaaS platform to establish connectivity. This enables overseas users to place orders through a one-stop solution, track logistics, manage inventory, and synchronize in real time with the factory side.

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More than a year into its sales and operations, Lianyi Medical’s business model has been validated and successfully scaled. The company’s monthly revenue has grown from hundreds of thousands to tens of millions of yuan, achieving profitability rapidly.The team projects that the company’s sales revenue will exceed RMB 500 million in 2018.

Following this round of financing, Lianyi will continue to expand its business scale and increase the number of overseas warehouses. In addition to further expanding into the European market and countries participating in the Belt and Road Initiative, the company will also enlarge its team to develop the Latin American market. Lianyi plans to launch third-party platform services in the second half of the year, with GMV expected to achieve further exponential growth. Additionally, the company will initiate supply chain finance operations.

According to statistics from China Customs, the total import and export value of medical devices in China reached USD 42.06 billion in 2017, representing a year-on-year increase of 8.09% and surpassing the USD 40 billion mark. Notably, medical device exports reversed the decline seen in 2016, showing a moderate upward trend with a 5.84% year-on-year increase. The total export value amounted to USD 21.703 billion, reaching a historic high. Data further indicates that in 2017, exports of medical devices to countries along the “Belt and Road” accounted for approximately 20% of China’s total medical device exports.

In the face of this market and policy environment,Wang Peng, CEO of Lianyi Medical, stated：“Empowering domestic brands to expand into the Belt and Road Initiative markets and achieving true globalization for Chinese medical device manufacturers is an exciting yet highly challenging mission."Successive financing rounds have also provided financial support for Lianyi Medical to expand into international markets and build a global brand."

It is reported that Lianyi Medical’s subsidiaries in China, Hong Kong, and Europe have obtained multiple certifications, including FDA clearance, CE marking, ISO certification, and approvals for Class I, II, and III medical devices. Their product portfolio largely meets the consumable needs of general hospitals and specialized clinics, and they have achieved a significant market share in certain European countries.

He Wen, Founding Partner of Chunxiao Capital, believes that China has already achieved global competitiveness in the field of medical device manufacturing, but Chinese enterprises have not captured sufficient value within the industry chain.

It is understood that within the global $3 trillion market for medical consumables, 80% of the production capacity for Class I and Class II medical consumables originates from China. However, multiple layers of markups throughout the export process have led to high end-user prices, while manufacturers enjoy only slim profit margins. “Amidst the current situation of severe overcapacity, Chinese enterprises are in urgent need of expanding overseas to bring Chinese brands to the global stage,” stated Xu Fang, Managing Partner at Galaxy Ventures.

In this context,Lianyi Medical has integrated domestic medical consumables suppliers with overseas end-channel distributors, enabling Chinese manufacturers to expand their overseas sales channels and brand presence while improving profit margins. Furthermore, through supply chain integration, end-user prices have been reduced by at least 20%, which holds strong appeal for overseas distributors and healthcare institutions.

He Wen, Founding Partner of Chunxiao Capital, believes that China has already gained global competitiveness in the field of medical device manufacturing, but Chinese enterprises have not captured sufficient value within the industrial chain. Lianyi Medical leverages internet technology to directly connect domestic manufacturers with overseas customers, significantly improving industry efficiency and helping upstream enterprises enhance the added value of their products. Its prospects are promising!

Huang Lu, Managing Director at Matrix Partners China, stated that in addition to their cost advantage, Chinese-made medical devices are increasingly gaining global recognition for their quality and product diversity, while Lianyi’s online platform has further enhanced the efficiency of the entire industry chain. The core team at Lianyi has deep expertise in the medical device industry and supply chain management, demonstrating strong market acumen and execution capabilities.

Xu Fang, Managing Partner at Galaxy Ventures, has witnessed the rapid growth of United Doctors since the firm’s initial investment. We have been deeply involved in post-investment management, empowering United Doctors with our B2B knowledge framework, assisting in the refinement of its commercial strategy, and introducing key talent. Observing the exponential growth of its core team has further solidified our confidence, leading us to make additional investments across three consecutive rounds.

Zhang Zitao, Managing Director of ZhenFund, believes that globalization is an irreversible trend in the quest for new economic growth drivers. As a perennial industry with high repurchase rates, the medical device sector enables Chinese manufacturers to master terminal distribution channels and command reasonable brand premiums. United Medical, which has developed within the vast blue-ocean markets of Europe and the United States, aligns with the Belt and Road Initiative and the broader strategic direction of leveraging emerging technologies to facilitate the global expansion of Chinese brands. In today’s globally connected landscape, there is a growing demand for professional, vertically integrated S2B2C platforms. From its inception, United Medical has targeted the global market, delivering significant value to both upstream manufacturers and end-users.

Currently, Lianyi Medical has achieved full-network operations and real-time data integration, spanning from medical device manufacturing plants to final-mile delivery in Europe and the United States. Overseas users can place orders through a one-stop platform, track logistics, manage inventory, and synchronize with manufacturers in real time. This empowers Chinese-branded medical devices to compete directly in local markets across Europe, the United States, and Belt and Road Initiative countries, delivering high-cost-performance medical devices to customers’ doorsteps more quickly, efficiently, and economically. “The road is long and arduous, but perseverance leads to success.”