Shequ 580 Secures $10 Million Series A+ Funding to Expand Prescription Outsourcing Business

In January 2018, Community 580, China’s largest integrated internet service platform for primary healthcare, officially announced the completion of its Series A+ financing round, raising tens of millions of U.S. dollars. The round was led by Tasly and other listed companies in the pharmaceutical manufacturing and distribution sectors, with existing Series A investors such as GF Xinde and Yongxi Investment continuing to participate.

According to VCBeat, Community 580 was established in March 2015. Initially, it rapidly entered the primary healthcare sector through its Family Doctor APP, providing community hospitals with a free-to-operate family doctor service platform. In March 2016, Community 580 announced that it had secured Series A financing led by GF Xinde.

After two years of development, Community 580’s business model of “rapidly empowering primary healthcare” has gained widespread recognition among primary medical institutions. By the end of 2017, the platform provided internet-based family doctor services to more than 6,000 primary medical institutions (including health stations). The services covered 24 provinces and 120 cities across China, reaching over 80 million residents, with more than 50,000 family doctors delivering services to residents through the Community 580 platform.

In 2017, Shequ 580 completed the research and development of its full product portfolio and officially announced the commencement of commercial operations in April of that year. With rapid conversion across products, team, and customer base, the company achieved profitability in the third and fourth quarters of 2017.

According to the director of a top-100 community health center in China offering the “Community 580” service, “Performance management is a key priority for community hospitals and their supervising authorities. Through the ‘Community 580’ family physician service management platform, many operational details can be reviewed individually. This includes which residents have signed contracts with family physician teams, how many health-related inquiries have been answered, and the timing and content of these communications—all of which are clearly recorded in the backend system. As the central government has assigned disciplinary inspection commissions to investigate the authenticity of public health services, our system now contains relevant data that they can conveniently access.”

The services provided by Community 580 are collectively referred to as the “Capability Cloud.” In addition to information technology services, the “Capability Cloud” integrates multiple medical services, including intelligent diagnosis, medication delivery, and laboratory testing. Once these third-party services are integrated into the Community 580 platform, they can rapidly empower community health service centers and family doctors. Furthermore, various types of medical data from healthcare institutions can be quickly made available to physicians and residents through integration with the Community 580 platform, thereby generating significant value.

For most community health service centers, building their own systems to integrate various services is often hindered by insufficient funding and maintenance capabilities. Through the “Capability Cloud” platform of Community 580, community hospitals can be equipped with services such as patient enrollment, health management, medication delivery, and remote consultation within just one to two weeks. This tightly connects patients, medical data, healthcare services, and the Internet of Things (IoT).

In addition, Shequ 580 has completed the construction of over 50 standardized contract signing centers for community health service centers with the necessary conditions, and plans to complete more than 400 by the end of this year. This initiative will effectively support the national promotion of family doctor contract services.

A standard contract signing center is equipped with comprehensive health screening devices, a contract management system, a health management system, self-service contract kiosks, mobile contract service kits, and a user-facing mobile app. The entire system can be fully deployed and go live within a hospital in just one week.

Yang Ning, Co-founder and Chief Operating Officer of Shequ 580, stated that the company’s business philosophy is to rapidly empower primary healthcare institutions and enhance the health management experience for both grassroots physicians and residents. The most significant gain from this round of financing lies in completing the strategic resource layout of the platform. In 2018, Shequ 580 will leverage resources such as offline pharmacies and pharmaceutical distribution channels from its strategic investors to focus on prescription outflow services, including the “580 Cloud Pharmacy,” while strengthening its pharmaceutical services and health management offerings to provide residents with an integrated online-to-offline “One-Stop Health Service.”

This collaboration is built upon Community 580’s development philosophy of “Infinite Extension, Establishing a One-Stop Health Hub.” By leveraging the Pharmaceutical Group’s advantageous resources across its multi-industry layout, including “Internet + Smart Pharmacy,” Community 580 will accelerate the empowerment of primary healthcare and build a health platform serving 1.4 billion people.