Jianke Secures $50 Million Series A+ Funding to Accelerate Internet Healthcare Expansion

VCBeat (WeChat: vcbeat), May 15 – Xie Fangmin, CEO of Jianke, a well-known domestic pharmaceutical e-commerce enterprise, has officially confirmed to VCBeat that Jianke has completed a $50 million Series A+ financing round. This round was jointly invested by Asia-Pac eCommerce, PGA Fund, and Volcanic Stone Capital.

With this, Jianke has completed its Series A financing round, raising a total of RMB 1 billion. Xie Fangmin, CEO of Jianke, stated that following this round of financing, Jianke will continue to prioritize and strengthen chronic disease management, strategically focus on internet healthcare, and further explore smart health services.

Founded in 2006, Jianke obtained the “Internet Drug Transaction Service Qualification Certificate” issued by the State Food and Drug Administration in 2009, becoming the first legally operating B2C online drug retailer in Guangdong Province. In 2015, its annual revenue reached RMB 1 billion, leading other online pharmacies. In 2016, its annual revenue hit RMB 1.5 billion, a year-on-year increase of 50%, once again topping the industry.

It is reported that Volcano Stone Capital, which participated in this investment round, was co-founded by Zhang Suyang, a former partner at IDG Capital. Classic cases from Zhang’s investment career include Ctrip, EachNet, Tudou.com, Hanting Hotels, and Kanghui Travel.

Regarding the investment in Jianke, Zhang Suyang stated, “The medical distribution channel is currently a weak link in the industrial internetization of the healthcare sector. The challenge lies in the unique nature of the medical industry. Addressing this issue requires a team with deep expertise in healthcare as well as strong capabilities in industrial internet operations. There are few such companies in China; Jianke is one of them and among the largest in scale. We anticipate continuous evolution and the emergence of new models in medical distribution channels. Change brings opportunity, and significant change brings substantial opportunity. We believe the Jianke team is well-positioned to seize this opportunity.”

Ma Jun, a partner at Penta Global Advisors, which participated in the investment, expressed strong optimism about investment opportunities in the broader healthcare sector. He stated that Jianke is China’s leading pharmaceutical e-commerce platform, and that the execution capability and sense of mission of its founding team will surely drive the development of China’s internet healthcare industry.

After securing $100 million in Series A financing early last year, Jianke has once again received a substantial capital injection just one year later. How will Jianke exert its efforts in the future? Xie Fangmin revealed that following this round of financing, Jianke will continue to intensify talent acquisition, prioritize supply chain development, and expand its presence in internet healthcare.

“Innovation is the cornerstone of Jianke’s development. With the support of capital, we will sprint forward through continuous innovation.” Whether it involves technological or business model innovation, Xie Fangmin regards these advancements as the “footprints” left during Jianke’s “rapid sprint,” with the ultimate goal of building an inclusive smart health platform for the general public.

Internet healthcare has witnessed rapid growth in China in recent years, yet a clear profit model has yet to emerge. Xie Fangmin believes that the entry of pharmaceutical e-commerce will serve as the breakthrough for internet healthcare to achieve monetization and sustainable long-term development. He revealed that in 2017, Jianke would establish a network of physical hospitals across China, laying the foundation for the development of internet healthcare and creating a comprehensive closed-loop smart health ecosystem encompassing pharmaceutical e-commerce, mobile healthcare, and intelligent medical services.

Capital has always been a crucial factor driving the development of pharmaceutical e-commerce. Currently, few pharmaceutical e-commerce enterprises are profitable; whether they are pure-play pharmaceutical e-commerce firms, platform-based pharmaceutical e-commerce providers, or those controlled by listed companies, achieving a balance between costs and revenue remains challenging. Against this backdrop, sustained capital infusion can help pharmaceutical e-commerce enterprises survive the early stages and establish a solid foothold.

Jianke secured $100 million in Series A financing from Kaixin Capital last year, setting a record for the largest single-round funding in China’s pharmaceutical e-commerce industry. It is reported that Kaixin Capital has previously invested in multiple publicly listed companies, including Baoxin Auto, Tudou.com, and Baozun E-commerce. The rationale behind its investment in Jianke is to support the company’s sustained high-speed growth in the pharmaceutical e-commerce sector.

Does investing in U.S. dollars mean that Jianke will list in the United States in the future? Xie Fangmin said, “Jianke is one of the few companies in the pharmaceutical e-commerce sector with a VIE structure and has made preparations for an IPO in the United States. It expects to list on NASDAQ within two to three years.” However, he also revealed that the possibility of listing on other main boards cannot be ruled out.

Guangdong Jianke Medicine Co., Ltd., established in 2006, is a leading enterprise in China’s pharmaceutical e-commerce sector and one of the largest online pharmacies nationwide. In 2009, it obtained the “Certificate for Internet Drug Transaction Services” issued by the State Food and Drug Administration, becoming the first legally authorized B2C internet drug retailer in Guangdong Province.

In early 2016, the company secured $100 million in Series A financing and was ranked by iResearch as the most valuable unicorn enterprise in the pharmaceutical e-commerce industry. In 2016, Jianke partnered with Taikang Online Insurance, a major domestic insurance provider, to launch China’s first authenticity insurance for pharmaceutical e-commerce, underwriting every self-operated product. Additionally, it joined forces with renowned domestic and international pharmaceutical companies to establish the first “Authenticity Alliance” in China’s pharmaceutical e-commerce sector.