Jinhua Tuo Announces Key Strategic Initiatives Following $10M+ Pre-A Funding Round
Recently, the TCM O2O platform Jin Huatuo announced that it had secured tens of millions of yuan in Pre-A financing, led by Legendstar Capital and participated by Tisiwi Ventures, 91160.com, and Qifu Capital. Previously, VCBeat’s article “SaaS Platform + Physical TCM Clinics: Jin Huatuo Completes the O2O Loop for Traditional Chinese Medicine》Previously introduced Jin Huatuo's business model.
Following this round of financing, Jin Huatuo will focus on three key initiatives: optimizing the pharmaceutical supply chain, intensifying online promotional efforts, and establishing standardized service protocols for its offline medical clinics.
1、Improve the pharmaceutical supply chain.
Currently, Jin Huatuo’s primary revenue stream relies on building a pharmaceutical supply chain. Therefore, the funds raised in this financing round will be partially allocated to establishing its own central pharmacy.
Dai Yunfeng, the founder, explained that there are two advantages to establishing an in-house central pharmacy: first, as it is a proprietary pharmacy, order dispatch efficiency is naturally significantly improved; second, users have greater choice in medication options.
Currently, Jin Huatuo's partners include Kangmei Pharmaceutical, Tongrentang, and Zhixin Pharmaceutical.
2. Accelerate online promotion while intensifying user traffic acquisition efforts.
Dai Yunfeng stated that the conversion rate of online traffic is generally around one per thousand, which is relatively low; therefore, a robust traffic entry point is required to provide support.
Jin Huatuo believes that this issue can be addressed from two aspects: on one hand, by strengthening the operation of its WeChat official account; on the other hand, by collaborating with other companies for mutual traffic diversion. For instance, JiuYi160, an investor in this funding round, may potentially open up traffic entry points to Jin Huatuo in the future. Additionally, Jin Huatuo may choose to partner with companies in sectors such as maternal and infant care, women’s health, and home-based services.
3. Establish a standardized service system for offline medical clinics.
It is understood that Jin Huatuo’s offline clinics are currently adding approximately 300 new cases per month. “The offline clinics utilize the company’s proprietary Hospital Information System (HIS), which has been fully integrated with its online platform. This integration facilitates smoother information exchange among doctors, patients, and clinics compared to traditional models, representing a key advantage of Jin Huatuo’s offline clinics,” stated Dai Yunfeng. He added that Jin Huatuo aims to strengthen this advantage by combining informatization with high-quality service into a standardized system and process. In the future, the company may also share this system with other clinics to jointly serve and cultivate their user base.
It is reported that the Jinhuatuo online platform currently has 1,288 certified physicians on the provider side, with a daily active user rate of approximately 15%. On the patient side, its WeChat official account, “Jinhuatuo Medical Assistant,” has accumulated 200,000 followers. In terms of orders, Jinhuatuo processes around 100 orders per day, and the number of paying users has reached 12,000 to date.
Jin Huatuo is a subsidiary of Shenzhen Jin Huatuo Technology Co., Ltd. and is a typical Traditional Chinese Medicine (TCM) O2O company. It operates four business lines: the Jin Huatuo Medical Assistant app, self-operated offline clinics, 24-hour dynamic meridian diagnostic devices, and TCM herbal medicine delivery. In early 2015, Jin Huatuo implemented the “Internet + TCM” strategy and clarified its “online + offline” development direction. In June of the same year, the company secured RMB 6 million in angel investment from Qifu Capital, triggering rapid project growth, with its offline clinics officially launching at the end of that year. The company currently employs 65 staff members, including 47 in its online team. Its co-founder Li Jiong, product director, marketing director, and other key executives are all seasoned industry professionals.
Editor | Zhang Caixia