Zhibei Pediatrics Secures Tens of Millions in Series A Funding from Sequoia China, Plans to Open Three New Clinics

Zhibei Pediatric Clinic

Recently, Zhao Qiang, CEO of Zhibei Pediatrics, told VCBeat that the company had secured tens of millions of yuan in Series A financing, with Sequoia Capital China (hereinafter referred to as “Sequoia China”) as the investor. Following this round of financing, the company will continue to uphold its integrated model combining offline physical clinics and online internet services, providing customers with closed-loop healthcare services grounded in Evidence-Based Medicine (EBM).

Zhibei Pediatrics was established in September 2016 as a professional institution dedicated to the field of child health, providing modern medical services for children. Adhering to the principle of "practicing medicine in accordance with standardized guidelines," Zhibei bases its care on the best available current medical evidence, while also taking into account each child’s individual characteristics and parental preferences, to deliver reliable medical services to patients. In addition to offering online services such as daily family health management, parenting courses, and health consultations, its offline outpatient clinics cover specialties including pediatric internal medicine, child healthcare, dermatology, and otolaryngology.

Since its opening in June, the offline pediatric clinic of Zhibei Pediatrics, located in Aoyuan City Tiandi in Panyu, Guangzhou, has been bustling with patients. Following this round of financing, Zhao Qiang plans to open three additional pediatric clinics.

So how did Zhibei connect with Sequoia Capital? Why is Zhibei Pediatrics’ offline clinic so popular? What are its highlights?

According to Zhao Qiang, Sequoia China partner Lu Qinchao first learned about Zhibei Pediatrics at a cocktail reception through a friend of a friend from the Cheung Kong Graduate School of Business. He later gained further insight into Zhibei Pediatrics through Xiaoyusan, a portfolio company of Sequoia China. Impressed by the project, he initiated due diligence on Zhibei Pediatrics.

During the due diligence process, Lu Qinchao made several special visits to the outpatient clinic for on-site inspections. According to his observations, whenever parents brought their children to Zhibei Pediatrics for consultation, every medical staff member greeted them with a smile from the moment they entered the clinic until the end of the consultation. The staff interacted patiently with the young patients and communicated in a relaxed, friendly manner, thereby transforming the traditional healthcare experience.

“Even for front-desk reception standards, I specifically engaged mentors from five-star hotels to train Zhibei’s staff, who meticulously learned every detail—from smiling and verbal etiquette to body language,” said Zhao Qiang.

Zhibei Pediatric Team

CurrentlyThe clinic has more than 10 medical staff members, including five full-time physicians, five nurses, and several physicians practicing at multiple sites.

Clinic Services IncludePediatric Internal Medicine、Department of Child Health Care,Dermatology,Otolaryngology. Among them, the most popularProjectYesChild Healthcare,Based on the current operational data, pediatric healthcare'sAppointment VolumeExceeding that of the entire outpatient clinic.of appointment volume50%。

The pediatric healthcare services provided by Zhibei Pediatrics enableParents and PediatriciansEstablish Long-Term, Stable Connections, enabling physicians to longitudinally monitor and assess children's growth and developmentCondition,and thereby formulatePromoting Early Childhood DevelopmentPersonalityChemicalGuidancePlan，MaintenanceChild'sMind and BodyHealth.

Each pediatric health checkup lasts 45 minutes,Single DosePricing800, comprehensive pediatric healthcare packages can also meetMothers’ Diverse Needs...

The reason for the popularity of Zhibei Pediatrics’ child health care program is its comprehensive scope, as shown in the table below:

In terms of customer acquisition, some patients come from online channels and others from offline sources. “Because we had a solid foundation in our online business previously, 70% of the clinic’s patient traffic comes from online channels, while offline growth mainly relies on word-of-mouth referrals,” said Zhao Qiang, expressing his satisfaction.

Regarding the enhancement of outpatient medical services, Zhao Qiang also has valuable insights. His approach involves soliciting feedback from patients, with every suggestion being carefully considered and adopted.

Here is what happened: Previously, a user brought her baby in for a check-up. The doctor asked her to complete a baby dietary questionnaire, which mainly covered basic information such as the baby’s eating habits and daily physical activity. However, the user felt that when visiting the clinic for child health care, she preferred to communicate directly with the doctor. Since filling out the form took up most of the time, she suggested: Could the baby dietary questionnaire be completed online after the appointment is successfully booked?

For expanding clinic chains, patient acquisition and capital are both critical. Zhabei Pediatrics already possesses these two key advantages; therefore, Zhao Qiang aims to open three additional pediatric clinics next year.

This is quite different from other startups that have secured financing. Some entrepreneurs, after raising funds, aim to expand more rapidly—opening five stores this year, eight next year, and ten the year after...

In Zhao Qiang’s view, healthcare is a relatively slow-burning industry; each offline store requires substantial effort in management and operations, which is entirely different from online operations.

Zhibei Pediatrics’ competitive edge lies in its integrated online-offline operational management model, which delivers closed-loop, evidence-based medical services. Its online presence is lean, avoiding the heavy burden of IT research and development; this approach leverages the advantages of the internet while minimizing management and labor costs. Zhibei Pediatrics’ strong commitment to evidence-based medicine further strengthens its advantage. As the mainstream trend in modern medicine, evidence-based practice—relying on scientific evidence—is increasingly gaining recognition and trust among parents.

Pediatric healthcare faces numerous pain points, with the core issue lying in the quality of care. Only by adhering to the principles of evidence-based medicine can we leverage the latest and most robust clinical evidence to provide high-standard medical services to patients. Furthermore, short consultation times and inadequate doctor-patient communication are common challenges. Zhibei aims to offer tangible support to infants, mothers, and fathers, addressing both physical ailments and emotional concerns. Zhibei ensures a minimum 30-minute consultation period through institutional policies, while also leveraging internet-based platforms to facilitate ample pre- and post-consultation communication, allowing every client to experience the warmth and care of Zhibei.

Zhibei deeply understands that safeguarding health is the true essence of medical care. Therefore, providing one-stop preventive medicine services with the goal of “family-wide health” has become a distinctive feature. Through daily communication between Zhibei’s medical staff and parents, potential health risks are promptly identified, integrating health management into everyday life. This approach not only fosters positive interactions between Zhibei and parents but also brings benefits to the entire family.

After several months of operations, Zhao Qiang identified that the most significant bottleneck is the severe shortage of pediatricians. Moving forward, he plans to establish a robust networking and communication platform by engaging physicians in the market, thereby strengthening his talent pipeline.

Therefore, after securing financing, Zhao Qiang’s first expenditure was to begin preparations in August for a second outpatient clinic. What moved him most about this round of financing was that Sequoia Capital not only provided financial support to Zhibei but also showed genuine concern for his health and future plans.

“I have considerable confidence in Zhibei Pediatrics,” said Lu Qinchao, Partner at Sequoia China. He believes that market feedback for specialized outpatient clinics has been well validated in recent years. This trend first emerged in the medical aesthetics industry, followed by ophthalmology and dentistry; these specialties have already demonstrated strong viability after operating independently of the public healthcare system. As investors seek the next medical specialty poised for successful market validation, pediatrics presents a highly promising entry point.
 
In future market development, Zhibei Pediatrics, as a new-type pediatric outpatient clinic, holds significant potential. First, from a business model perspective, Zhibei Pediatrics organically integrates online medical services with offline outpatient care, providing a closed-loop, mid-to-high-end healthcare service system.
 
Next is the team. The star pediatricians and professional administrative management team within the group possess the prerequisites for replicating the outpatient clinic model.
 
Finally, the Zhibei Pediatrics team also demonstrates outstanding management and leadership. “I spoke with CEO Zhao Qiang and found that his development strategy is very clear, with well-defined tactics,” said Lu Qinchao enthusiastically.
 
Thus, the decision-making process—from learning about Zhibei Pediatrics to finalizing the investment—was swift and decisive, with the investment amounting to tens of millions of RMB.
 
In Lu Qinchao’s view, the greatest advantage of Zhibei Pediatrics, as a chain of pediatric clinics, is its online medical services.
This is a very grounded approach that addresses users' real needs—family daily health management services.
 
“I believe that through frequent interactions with users, Zhibei has established a strong sense of trust online, which will undoubtedly drive effective conversion to its offline brick-and-mortar stores.”
 
Meanwhile, Zhibei’s medical team possesses professional medical expertise and a service-oriented philosophy, which is also a significant factor driving the development of this emerging industry.
 
What is even more valuable is Zhibei’s extensive experience in departmental setup and management. Lu Qinchao believes that this expertise will play an even greater role and be more fully demonstrated in the subsequent operation of its chain clinics.
 
In Hong Kong and Japan, convenient clinics have become part of daily life. According to Lu Qinchao, pediatric chain clinics in China will emerge as a development trend, driven by the market environment of consumption upgrading.
Furthermore, pediatric chain clinics do not conflict with any services offered by public hospitals; instead, they provide differentiated medical services tailored to individualized needs. Therefore, government encouragement for this sector is foreseeable.
 
Pediatric chain clinics need to secure a sufficiently large service area in the early stages to establish their brand, but operations will become increasingly smooth over time.