Kan Zhongyi Announces $7.5M Series A Funding to Expand Integrated Traditional Chinese Medicine Platform

On the afternoon of December 17, 2015, Luo Feng, founder of Kan Zhongyi (See TCM), announced that the company had secured RMB 50 million in Series A financing. At the same time, it launched new products including “Mobile Outpatient Clinic,” “TCM Talks,” “Health Steward,” and “Qigong Workshop,” embarking on a new journey to build a mobile internet-based traditional Chinese medicine healthcare platform.For more details on consulting traditional Chinese medicine (TCM) practitioners, please refer to the VCBeat article “Consulting TCM Practitioners: Returning to Traditional Chinese Medicine and Developing Medical-Grade Products.”) It is understood that this round of financing for Kan Zhongyi was facilitated by Ethereal Capital, with Zhonglu Capital leading the investment and Lian Fund participating as a co-investor.

Photo: Press Conference Venue

Luo Feng stated that upon entering the new phase, the company will comprehensively expand its efforts in areas such as industry customization, service optimization, TCM-focused social networking, training and education, and community healthcare. While providing standardized outpatient services, it will also fully leverage the inherent health preservation and wellness properties of Traditional Chinese Medicine (TCM), exploring entry into sectors such as elderly care.

The six major categories of treatments currently offered include: sub-health management, spinal health, gynecological and pediatric care, beauty and weight loss, group consultations, and the “Famous Doctors’ Hall” for popular science education.

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It is understood that after the completion of Kan Zhongyi's Series A financing round, the company will enhance its product in the following five areas:

1. For physicians: Transform TCM home visits into mobile clinics; develop the “TCM Family” product to fulfill the role of family health practitioners in traditional Chinese medicine.

2. Data Aspect: Complete functions such as article sharing, TCM social networking, and doctor-patient interaction through the “TCM Talk” product; construct the Qiji Health Record to improve user personal data, and gradually form a complete big data analysis of traditional Chinese medicine.

3. Peripheral Products: Produce proprietary TCM products through Qigongfang and Qiji Traditional Chinese Medicine.

4. Offline Stores: The “Shengren Jifang” outpatient clinic will be fully utilized for initial Traditional Chinese Medicine (TCM) consultations.

5. Elderly Care: Leveraging the principles of Traditional Chinese Medicine to play a significant role in the field of elderly care.

Ether Capital, acting as the intermediary for Kan Zhongyi’s financing round, stated that Kan Zhongyi’s business model features differentiation and scalability, with a distinctive combination of home-visit TCM services and offline clinics. Furthermore, Kan Zhongyi’s clinic qualifications enable the provision of a broader range of services and create numerous opportunities for collaboration with pharmaceutical and medical device manufacturers.

Lian Fund, one of the investors, also noted that a major pain point in China’s current tiered diagnosis and treatment system is the shortage of general practitioners. In China, there is a significant lack of general practitioners trained in Western medicine; however, TCM physicians can currently be leveraged to fill the role of general practitioners. Furthermore, a distinguishing feature of the Kan Zhongyi team is that its founder, Luo Feng, comes from a family with a long tradition of practicing Traditional Chinese Medicine and has also received education in the IT industry. This combination creates the “healthcare plus internet” background that investors seek.

Reportedly, the Kan Zhongyi platform has currently contracted with nearly 400 physicians, 70% of whom are from Grade 3A hospitals. In terms of users, Kan Zhongyi has over 200,000 registered users in Beijing, processes more than 200 orders per day on average, and boasts a user repurchase rate as high as 75%. Furthermore, the platform has over 10,000 paying users, nearly 100,000 client app downloads, and has completed a cumulative total of more than 15,000 orders.

“For those interested in the project and seeking more information, please contact me by adding my WeChat: 18310282126 (ID: Zheng7).”

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