23andMe-China Inspired Genomics Firm 23Mofang Secures RMB 40 Million Series B Funding, Aims for 1 Million Annual Sample Capacity by Year-End

Recently, 23Mofang, a well-known domestic genetic testing company, announced the completion of its Series B financing round, raising RMB 40 million. The round was led by Hanwang Technology, with participation from Yahui Medical, Fenghou Capital, and Deshang Qidian.

23Mofang was established in 2015, providing genetic testing services to the Chinese population and conducting life data analysis. Leveraging an internet-based platform, the company is committed to its mission of “digitizing life for the benefit of all” and strives to become the most trusted genetic testing company.

In recent years, China’s genetic testing industry has experienced rapid growth, accompanied by ongoing consolidation and market segmentation. Unlike traditional medical-focused genetic testing, 23Mofang combines genetics with consumer interests and curiosity, delivering direct-to-consumer services via the internet for ancestry analysis, genetic risk assessment, and more.

As lifestyles change, single online platforms no longer meet consumer demands, prompting many companies to turn their attention to the mobile application market. The direct-to-consumer (DTC) model based on internet platforms significantly reduces operational and channel costs. In 2015, 23Mofang became the first company in China to launch a genetic testing product featuring over 100 test items at a price point below RMB 1,000.

Initially, 23Mofang employed PCR combined with next-generation sequencing (NGS) for its testing services. Subsequently, the company entered into a strategic partnership with Affymetrix and gradually transitioned to using microarrays covering 900,000 loci, making it the DTC company in China with the highest number of tested loci at that time. In 2017, the company collaborated with Thermo Fisher Scientific to launch customized biochips, upgrading the number of tested loci to over 700,000.

As testing technologies continue to advance, 23Mofang has also carried out a series of product iterations. Its offerings have undergone multiple upgrades, evolving from the initial detection of mutations associated with hereditary cancers to the later inclusion of health risk assessments and ancestry analysis.

In April 2017, 23Mofang launched China’s first standalone ancestry testing product, priced at just RMB 499. Compared with 23andMe, 23Mofang’s product design is better tailored to the characteristics of the Chinese population, and it covers a more comprehensive set of genetic markers.

Furthermore, a family genetic tree feature has been introduced to provide family-based health screening, covering over 300 genetic health tests.

Alongside the launch of its new products, 23Mofang announced the opening of a new 600-square-meter biological laboratory. Constructed in accordance with the standards for clinical medical testing laboratories, the facility has obtained the requisite license for such operations. Zhou Kun stated, “Although 23Mofang does not engage in genetic testing for clinical diagnostic purposes, we fully adhere to medical standards, with the aim of providing more professional services to the general public.”

He believes that the goal of 23Mofang is still to make genetic testing accessible to the general public. This process requires technological upgrades to reduce testing costs, thereby lowering the price barrier for products. Therefore, establishing an independent testing center to eliminate intermediate links is crucial.

As of now, 23Mofang has completed 50,000 tests, with users covering all provinces, municipalities, and autonomous regions in China (including Hong Kong, Macao, and Taiwan) as well as overseas Chinese communities.

At its inception, the company successfully secured a RMB 5 million investment from Fenghou Capital.In January 2016, the company secured Pre-A round financing from Singularity Capital and Fenghou Capital.On January 3, 2017, 23Mofang announced another round of financing, securing RMB 20 million in Series A funding led by Yahui Medical, with Hanwang Qichuang as a participating investor. Just six months after the Series A round, 23Mofang raised RMB 40 million in Series B funding. To date, the total amount raised by 23Mofang has approached RMB 80 million.

According to VCBeat, the funds raised in the Series B round will be used to expand testing centers and broaden market reach. Meanwhile, the capital will also be invested in product research and development to create more testing panels tailored to the Chinese population’s physiological characteristics, while continuously improving testing accuracy. Zhou Kun revealed that the company’s 600-square-meter laboratory, built in accordance with the standards for medical clinical laboratories, has already begun operations.

Following the completion of this round of financing, efforts to build the testing center will be further intensified, with the expectation of achieving an annual sample processing capacity of 1 million cases by the end of next year.