Youmu Dental Completes RMB 65 Million Series B Funding Round Led by Matrix Partners China
VCBeat (WeChat ID: vcbeat) has learned that Shenzhen Youmu Dental Co., Ltd. (NEEQ: 870468, hereinafter referred to as “Youmu Dental”) announced it has recently completed a Series B financing round totaling RMB 65 million, led by Matrix Partners China and participated in by Jingxu Venture Capital. The funds raised will be allocated to three major areas:Outpatient Clinic M&A, Clinic Development, and Brand Promotion.
Youmu Dental is a mid-to-high-end dental chain service brand specializing in dental implants, orthodontics, aesthetic restoration, and pediatric dentistry, operated under a partner model by licensed dentists. Its founder, Zhu Weiwei, has a professional background as a dentist.
Since opening its first clinic in 2006, Youmu Dental has maintained a steady growth trajectory. From 2014 to 2016, the company achieved an average annual revenue growth rate of 60%. The number of self-operated clinics increased from five in 2015 to nine in 2016 and further to twelve in 2017, with three additional clinics under construction. This expansion has established a regional advantage centered in Shenzhen and facilitated cross-regional growth.
Completed a Series A financing round of RMB 28 million in early 2016, and listed on the New Third Board in January 2017. As of 2017, Youmu Dental had operations in Shenzhen, Guangzhou, Dongguan, and other cities.12 Dental ClinicsDepartment.
The oral care industry as a whole is experiencing robust growth, with consumption upgrading driving the middle class to place greater emphasis on and improve their oral health management.
From the perspective of the capital market, dental healthcare institutions such as Arrail Dental, Bybo Dental, and Malo Clinic have all undergone multiple rounds of financing across China. The entities listed on the National Equities Exchange and Quotations (NEEQ) are regional dental chains. In addition to Youmu Dental, there are four other major players: Ke’en Dental, which has a deep presence in Shandong Province; Dazhong Dental, which focuses on Hubei Province; Huamei Dental, which operates in Chengdu and surrounding areas; and Bairui Dental, which centers its operations in Guangdong Province.
From a profitability perspective, it is not difficult for a single outpatient clinic to achieve profitability. However, for large-scale dental chains to achieve steady overall growth, they must rely on robust internal management and process control capabilities, as well as the stability and development of their physician teams. The rapid expansion strategy pursued before 2016, which prioritized market share over profitability, will be difficult to sustain in the future.
Regarding this financing round, Dr. Zhu Weiwei, Chairman and General Manager of Youmu Dental, stated, “Following the Series B financing, Youmu Dental will continue to pursue a growth strategy that combines organic expansion with inorganic expansion,”Establish a subsidiary in partnership with leading local dentists to build Youmu’s unique chain of dental care service systems.. Meanwhile, by enhancing operational management capabilities, implementing precise pricing strategies, optimizing inter-departmental collaboration, and consolidating its geographical advantages in the Guangdong-Hong Kong-Macao Greater Bay Area, the organization ensures sustained, steady, and rapid development; furthermore, it stabilizes its physician team and safeguards medical quality through Youmu Training.”
As the lead investor in this round, Yu Zhiyun, Investment Director at Matrix Partners China, stated: “The founding team of Youmu has worked together for many years, comprising renowned dentists with extensive clinical experience who hold leading positions in both clinical practice and academia, as well as management professionals with rich operational expertise. Their operational efficiency is significantly higher than the industry average. Amidst the strong momentum of healthcare consumption upgrading in China, we are optimistic about the company’s potential to leverage its regional leadership position and rapidly expand across the Guangdong-Hong Kong-Macao Greater Bay Area.”
Qian Tingzhi, Founding Partner of Jingxu Venture Capital, stated: “Youmu’s established regional advantages, replicable business expansion model, and mature, complementary founding and management team are the cornerstones of its sustained and steady development, as well as the key reasons for Jingxu’s continued support of Youmu.”
About Youmu Dental:Founded in 2006, Youmu Dental is a mid-to-high-end dental chain service brand featuring dental implants, orthodontics, aesthetic restoration, and pediatric dentistry, operated under a partner model by licensed dentists.
As of December 31, 2017, the company operated 12 clinics with three under construction, establishing a regional advantage centered in Shenzhen and enabling cross-regional expansion. It boasts a professional medical team of over 200 members. The company was listed on the National Equities Exchange and Quotations (NEEQ) in January 2017. Adhering to its operational philosophy of “doctors first, technology foremost, and patients paramount,” the company is committed to delivering high-quality healthcare services.
About Matrix Partners China:Matrix Partners China, established in 2008, manages four US dollar funds and six RMB funds, with total assets under management exceeding RMB 21 billion. Focusing on early- to mid-stage investments, Matrix Partners China targets startups deeply rooted in the Chinese market and has invested in more than 450 companies to date. With an investment team of nearly 40 professionals and a post-investment support team of nearly 70, Matrix Partners China provides entrepreneurs with value-added services that go beyond capital.
Since its establishment in 2008, its portfolio companies have included Didi Chuxing, Momo, Ele.me, ofo, Kingnet Network, Cheetah Mobile, 21Vianet, Bona Film Group, Baofeng Video, Tubatu, Zhaogang.com, Guazi Used Cars, Liepin, VIPKID, Yuanfudao, PINTEC, 36Kr, iKang Guobin, Nanjing Jianyou, So-Young, Gengmei, Zhuozheng Medical, Suzhou Peijia, Anxin Doctor, Hope Bioscience, and Deepwise. Among these, 26 companies are listed or quoted on stock exchanges in China, the United States, and other regions; nine companies have valuations exceeding USD 5 billion, and 25 have valuations above USD 1 billion.
About Jingxu Venture Capital:Jingxu Venture Capital is a professional investment firm specializing in the healthcare and medical sector. With a dedicated investment team and robust capabilities in industry resource integration, the firm is committed to value investing by identifying high-quality enterprises across the healthcare value chain and facilitating their rapid growth.
Since its inception, Jingxu Venture Capital has continuously refined its investment portfolio across specialized sectors including innovative medical devices, pharmaceutical R&D, precision medicine, and chain healthcare services. To date, it has completed investments in nearly 30 high-growth healthcare companies, including: Lenor Medical, Jinshi Biotech, and Yunyi Medical in the field of innovative medical devices; Bowei Biopharma, Antegen Biotech, Xunuo Pharmaceutical, and PhenoMed in pharmaceutical R&D; Flygen Diagnostics, BioNano Genomics, and Meike Medicine in precision medicine; and Youmu Dental (NEEQ: 870486), China Cord Blood Corporation (NYSE: CO), and Jiahui Health (NEEQ: 835660) in healthcare services.