Wubao Files IPO Prospectus: A Digital Therapeutic App Combating Smartphone Addiction with Gamified Incentives and Light Social Features

According to incomplete statistics from the VCBeat Internet Healthcare Research Institute, there are currently over 1,000 mental health apps in China (covering conditions such as autism, obsessive-compulsive disorder, depression, etc.). In terms of disease-specific distribution, most of these apps offer comprehensive services for general psychological issues. Apps targeting a single specific condition (such as depression) do exist but are relatively few in number, and their content is predominantly focused on assessments, with very few offering therapeutic interventions.

Today, we are introducing Wubao, a therapeutic software application focused on the treatment of specific mental disorders.

Wubao is an app developed by Hangzhou Wubao Technology Co., Ltd. for treating smartphone addiction. The software evaluates and intervenes based on specific metrics collected from users’ usage of various apps, followed by re-evaluation and further intervention, thereby helping users gradually overcome smartphone addiction.

In daily life, many people are constantly using their smartphones—whether commuting, attending meetings, eating, or even before sleep. The behaviors associated with using a smartphone to access the internet are largely similar to those of using a computer, such as reading novels, browsing news, playing games, and watching videos. However, the portability and constant accessibility of smartphones make them more prone to causing addiction. Addictions can be categorized into substance addictions and behavioral addictions, depending on whether there is involvement of psychoactive substances. Essentially, both smartphone addiction and internet addiction are forms of behavioral addiction.

Prolonged mobile phone addiction and exposure to electromagnetic radiation may also affect the brain, leading to difficulty in concentrating, and may even cause menstrual irregularities in young women.

The most direct harm of mobile phone addiction is reflected in daily life. News reports have documented cases such as car accidents caused by using phones while driving, and fatalities resulting from pedestrians being struck while looking down at their phones.

Mobile phone addiction is classified as a “chronic disease,” characterized by long-term, high-frequency demands, with a high risk of relapse upon discontinuation of treatment. Furthermore, mobile phone addiction is not attributable to genetic defects, and pharmacological intervention is not a mandatory therapeutic approach.In the United States, addiction intervention delivers substantial value: every $1 invested in manual intervention saves $9.60 in subsequent treatment costs, while intelligent intervention can further significantly reduce intervention expenses. Moreover, mobile phone addiction affects a broad population, with 10% of mobile users taking action to address it.

Treating smartphone addiction with a mobile app might raise questions: What if users become addicted to the product itself? Or, if the product is truly effective and users reduce their phone usage, wouldn’t that lead to decreased user stickiness? In response, Huang Wenjia explained that the Wubao APP does not proactively send reminders to users. Once installed, the app requires minimal interaction. Furthermore, Huang Wenjia believes that“If a user’s mobile phone usage duration and patterns show significant excess compared to those of individuals with similar backgrounds, it is considered an indication of smartphone addiction.”Therefore, mobile phone use within the normal range does not constitute mobile phone addiction.

What constitutes excessive duration and patterns of use? To address this, Wubao has developed its own proprietary system for detecting and analyzing addiction levels. By collecting data such as the timing and duration of smartphone use, along with specific metrics related to the usage of various applications, and supplementing this with self-assessment scales and data from wearable devices, the system evaluates and tracks users’ smartphone behavior on a daily basis and over extended periods. This enables smartphone users to gain a clear understanding of their own usage habits. Furthermore, the analysis and monitoring of these data provide a foundation for intervention and re-evaluation.

As a form of addictive behavior, smartphone addiction comprises four stages: the induction stage, the formation stage, the consolidation stage, and the exhaustion stage. Huang Wenjia chose the formation stage as the entry point to initiate therapeutic interventions for individuals with addiction and to establish prevention mechanisms. Huang told VCBeat that, compared to other stages, the formation stage is characterized by repetitive behaviors that eventually lead to dependence. During this period, individuals struggling with addiction often experience feelings of shame, fear, and self-blame, along with a strong desire to quit, making it an optimal window for timely corrective treatment.

Given the complexity of the process of mobile phone addiction, Wubao has adopted a dynamic combination therapy model to intervene in addicts' mobile phone usage behaviors. This model primarily includes three methods: a points-based mechanism with redemption options, a light social networking system, and platforms for sharing experiences and learning.

First, Wubao employs a points-based mechanism and redemption system to achieve psychological compensation by accumulating points for prizes and activities, thereby distributing singular gratification across various domains to produce therapeutic effects. Its points system is modeled after the U.S. Contingency Management (CM) voucher approach, which uses reward and penalty mechanisms to encourage users to maintain a healthier lifestyle. The product sets specific tasks; users earn points as rewards for completion and face penalties for overindulgence. Once points accumulate to a certain threshold, they can be redeemed nationwide for goods or participation in offline group activities, such as family dinners, couple’s travel, and social events. Huang Wenjia stated that mobile phone addiction often arises because the gratification derived from smartphone use far exceeds that of many other lifestyles. If individuals can be guided to experience offline lifestyles that provide similar satisfaction, a state of balance can be achieved.

Secondly, a light social networking system is constructed to facilitate user interaction during the intervention process for mobile phone addiction. This light social system is primarily built upon two frameworks: Close Relationship Agents/Significant Others (CRA/CSO) and Behavioral Couple Therapy (BCT). In the CRA/CSO model, users can add each other as friends on the Wubao platform, allowing them to view each other’s rankings and mobile phone usage statistics. Friends can also initiate challenges, such as competing for longer periods of non-use or higher rankings, with points awarded for superior performance. The BCT model involves designating specific partners to interact in pairs, where better performance by one party results in greater rewards for both individuals.

Finally, the insights sharing and learning component provides users with cognitive behavioral therapy. Wubao guides users by sharing tips on mobile phone usage and interesting offline lifestyle activities. In the clinical treatment of addiction, just a few minutes of insight exchange per week can significantly enhance users' rational recognition and acceptance of the therapy.

“In addition, since individuals are at different stages during use and vary in their psychological conditions and severity of addiction, Wubao adopts targeted therapies based on each stage and continuously adjusts intervention plans by evaluating users’ progress,” Huang Wenjia told VCBeat.Wubao will further explore specialized scenarios, such as driving mode and meeting mode. Meanwhile, it will carefully consider incorporating coercive management measures based on counter-conditioning and aversion therapy, such as phone locking, harassment, and wristband electric shocks.

Regarding the team, Ubao’s core members are primarily master’s graduates from the University of Pennsylvania, an Ivy League institution in the United States. Founder Huang Wenjia brings six years of experience in business development and project mergers and acquisitions within the pharmaceutical industry. Partner Pamela Scott has 27 years of experience in treating behavioral addictions. Chen Tianhui has six years of experience in media and new media within the healthcare sector. Nishank Sind possesses two years of experience in big data and machine learning.

It is reported that Wubao’s assessment module has been largely completed.

Currently, the team is promoting its product within universities, seeking collaborations with institutions at various levels to understand the mobile phone usage habits of the target demographic and iteratively update the intervention module based on user feedback. By following the WeChat official account “Wubao,” users can download the Wubao beta version, interact with “Brother Bao,” and access more information related to mobile phone health, campus activities, lifestyle, and other topics.

In addition, the Wubao team is planning to raise RMB 8 million in financing, which will be primarily allocated to research and development (R&D) and marketing promotion.

(Institutional investors interested in this project may contact VCBeat staff via WeChat ID:)15902376728）