Home DaJia ZhongYi Files IPO Prospectus: Empowering TCM Practitioners with Big Data

DaJia ZhongYi Files IPO Prospectus: Empowering TCM Practitioners with Big Data

Jun 18, 2016 08:00 CST Updated 08:00
In contrast to the explosive growth of internet healthcare, traditional Chinese medicine (TCM) developed relatively slowly in the early stages of this sector. However, over the past two years, there has been a rush of capital vying for position in TCM-focused internet projects. With 2016 as a turning point, most internet TCM projects were still immature in the preceding period; as time progressed, various business models gradually became clear in the first half of 2016. Seizing this opportunity, VCBeat will launch a series of related articles and host an industry salon themed on internet TCM at the end of June. For more details, please continue to follow VCBeat.


True to its original mission, Dajia TCM is currently dedicated to providing a high-quality learning tool for TCM practitioners. Meanwhile, it is building a community for TCM physicians (including students and seasoned enthusiasts) to help them enhance their clinical proficiency.

 

In reality, TCM practitioners share common traits: senior experts possess their own unique expertise, require a dedicated platform to showcase it, and are highly motivated to pass on their knowledge. The community “Channels” provided by Dajia Zhongyi enable physician users to establish their own platforms, deliver systematic lectures, and cultivate their own follower base. Furthermore, these “Channels” can be integrated with “Classics” and “Personal Case Studies,” allowing renowned historical case records to serve as references that help TCM practitioners enhance their clinical skills.


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Dajia Zhongyi App Interface

 

Since its establishment in June 2015, Dajia TCM has secured tens of millions of RMB in angel-round financing from BlueRun Ventures. Without engaging in large-scale promotional campaigns, the platform has amassed nearly 300,000 users, 30%–40% of whom are TCM practitioners, with the remainder comprising seasoned TCM enthusiasts and TCM students.

 

TCM Is More Aligned with the Characteristics of Mobile Healthcare

 

According to Mo Yi, co-founder of Dajia Zhongyi, the internet has brought new development opportunities to traditional Chinese medicine (TCM). “Most TCM practices are individual clinics, which are not constrained by equipment or venue limitations, making them better suited for mobile healthcare.”

 

Currently, a major pain point for the community of Traditional Chinese Medicine (TCM) practitioners is their poor livelihood conditions, primarily manifested in a small patient base and consequently low income. The root cause of this phenomenon is that the overall therapeutic efficacy of TCM practitioners has not been fully demonstrated.

 

Dajia Zhongyi starts with tools for TCM practitioners, aiming to enhance their clinical proficiency through its products and thereby change the current landscape.

 

Specifically, the approach adopted by Dajia Zhongyi is as follows: First, classic TCM texts are systematically organized and presented in the “Classics” section, where users can access desired TCM classic books, prescriptions, and other resources. Both founders share a common view that advocates reading TCM classics and engaging in dialogue with ancient scholars. They note, “Current TCM education is overly Westernized, causing many TCM practitioners to discard the most essential classical knowledge, ultimately resulting in a hybrid practice that is neither truly TCM nor Western medicine, and lacking in authentic TCM thinking.”

 

Secondly, improve community features to allow users to freely communicate in the “Channels” section. “Any insights, experiences, or methods gained while studying Traditional Chinese Medicine can be shared on this platform, as long as users are willing to contribute.”

 

In addition, Dajia Zhongyi has launched a “Personal Medical Cases” section, where users can add medical cases they have diagnosed themselves or collected from other sources.

 

Big Data Holds Greater Value for Traditional Chinese Medicine Than for Western Medicine

 

Surprisingly, the two founders of Dajia TCM did not come from traditional Chinese medicine backgrounds; instead, they were top students in science and engineering at prestigious universities. Sun Tao, one of the founders, graduated from the Department of Computer Science at Fudan University and formerly served as CTO of The9 Limited. Mo Yi graduated from the Department of Electronic Engineering at Tsinghua University. This background has made the data-driven nature of Dajia TCM even more pronounced.

 

In fact, for Traditional Chinese Medicine (TCM), the more complex the symptoms are, the higher the accuracy of syndrome differentiation. From this perspective, big data holds greater value for TCM than for Western medicine.

 

“Given my background in the IT industry, I began organizing and analyzing data at an early stage. Meanwhile, I have been continuously exploring how technology can be integrated with Traditional Chinese Medicine (TCM), leveraging technical means to digitize and tag these elements,” Mo Yi told VCBeat. This approach also served as the prototype for the “Classics” section of Dajia TCM.

 

Currently, Dajia Zhongyi has compiled nearly 20,000 case studies from renowned practitioners in classic medical texts such as Treatise on Cold Damage Disorders and Essential Prescriptions from the Golden Cabinet. Leveraging a deep understanding of the core theories of Traditional Chinese Medicine (TCM), it has established a backend logical framework to digitize these cases and generate an extensive system of symptom (syndrome) tags.

 

When doctors use the search tool on Dajia Zhongyi, they can input specific patient symptoms to receive matched case studies from renowned TCM practitioners. The more detailed and clear the symptom description, the more precise the resulting matches will be. “This tool helps physicians enhance their diagnostic and treatment capabilities and supports their clinical decision-making,” emphasized co-founder Mo Yi, adding, “Traditional Chinese Medicine can be clearly articulated through data.”

 

“The wool comes from the pig.” Discussing the product’s revenue model, Mo Yi stated, “Most TCM practitioners operate as individual clinics and prescribe formulas to patients but do not have in-house pharmacies. So where would you buy them?” Mo Yi added, “When the user base reaches 400,000 to 500,000, the daily transaction volume will be at least several hundred thousand yuan. And that doesn’t even include dietary therapy.”

 

It is reported that some manufacturers of processed traditional Chinese medicine (TCM) decoction pieces have begun to engage with Dajia TCM.


I. Cloud TCM: Embracing the Boom in TCM Clinics with SaaS

II. Investment Opportunities in “Traditional Chinese Medicine + Internet” from a Policy Perspective

III. Zhaoyaocai.com: Enabling Traceability and Standardization of Traditional Chinese Medicinal Materials

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