WeDoctor Group Secures $300M Series E Round at $1.5B Valuation, Files Prospectus

On the night of November 30, 2015, an announcement regarding overseas investment by Shanghai Fosun Pharmaceutical (Group) Co., Ltd. circulated in WeChat groups, instantly igniting the internet healthcare venture capital and investment community. The announcement disclosed that Fosun Pharma, through its wholly-owned subsidiary Regal Gesture Limited, invested USD 65 million to acquire a 4.33% stake in WeDoctor Group. Based on calculations derived from the information in this announcement,Micro Medical Group's valuation in this round has reached $1.5 billion.

The announcement stated that Guahao.com was founded in 2006, is registered in the Cayman Islands, and has Liao Jieyuan as its Chairman. With the mission of “making medical care accessible and health manageable,” Guahao.com is committed to transforming China’s healthcare industry through information technology. By connecting hospitals, doctors, and patients via the internet, it facilitates efficient information sharing among these three parties, provides the most advanced and trusted mobile healthcare services, and thereby constructs a new type of doctor-patient relationship in China and a novel mobile internet healthcare service model. This aims to establish the premier platform for public medical care and healthy living, as well as a virtuous, interactive ecosystem encompassing medical services and the health industry. VCBeat compared this announcement with previously released information from WeDoctor Group and identified three changes:

I. Change in Financing Amount: The financing amount for this round of WeDoctor Group is $300 million, not the previously announced $394 million.In late September 2015, Guahao.com held a press conference to publicly announce its rebranding as WeDoctor Group and the closing of a $394 million financing round. According to the announcement, seven companies invested in WeDoctor Group. Hillhouse GH-II Holdings Limited, Broad Street Investments Holding (Singapore) Pte., Ltd., and Yangzi River Investment Limited, representing Hillhouse Capital, Goldman Sachs, and Tencent Investments respectively, contributed a total of $300 million for a combined 20% equity stake. II. Change in Financing Round: The announcement explicitly states that this round of investment is Series E, whereas it was previously announced as Series C.The announcement stated that on November 30, 2015, Regal Gesture Limited, a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (hereinafter referred to as “the Company”), together with other Series E preferred share subscribers and Guahaowang, entered into the “Series E Preferred Share Subscription Agreement” and other related documents (hereinafter referred to as the “Subscription Agreement”). Under the agreement, Regal Gesture Limited agreed to subscribe for 39,669,253 shares of Series E preferred shares issued by Guahaowang at a price of USD 1.638548588 per share, with a total subscription amount of approximately USD 65 million. The announcement also disclosed the changes in equity ratios before and after the issuance of the Series E preferred shares, indicating that Weiyi Group has completed a total of nine rounds of financing, both large and small. III. Change in Lead Investors: This round was led by Fosun Pharma, rather than Hillhouse Capital and Goldman Sachs Capital as previously announcedIn late September 2015, Guahao.com held a press conference to publicly announce that it was rebranded as WeDoctor Group. This round of financing amounted to USD 394 million, led by Hillhouse Capital and Goldman Sachs Group, with co-investment from Fosun, Tencent, China Development Bank Financial, and others. According to the announcement, Fosun Pharma accounted for 4.33% of the investment in this round, the highest proportion among the seven investing institutions. Among the remaining investors, Hillhouse GH-II Holdings Limited, representing Hillhouse Capital, held a 4% stake; Broad Street Investments Holding (Singapore) Pte., Ltd., representing Goldman Sachs Capital, Suzhou Industrial Park Kaiyuan Yikang Venture Capital Enterprise, and Great Health Investments Limited each held a 3.33% stake; and Yangzi River Investment Limited, representing Tencent Investments, held only a 1% stake.

Despite minor fluctuations, it is undeniable that WeDoctor Group, valued at $1.5 billion, has become a true unicorn in China’s internet healthcare sector.

Ten years from now, we may find that this is a night worth remembering in a new era.

For the full announcement, please click “Announcement"Download."