Quyi Network Secures $40 Million Series B Funding to Build Strategic Moat in Mobile Healthcare

Major Financing Deals Emerge in the Internet Healthcare Sector: Following Media Reports of Medlinker Securing $40 Million in Funding, Quyi Network, a Company Specializing in Mobile Healthcare Solutions for Hospitals, Announced Today That It Has Completed Its $40 Million Series B Financing Round. The Round Was Led by Baidu, with Participation from SoftBank China Capital and Honghui Capital, while China Renaissance Served as the Exclusive Financial Advisor for This Financing.

Zhang Zhenhua, Deputy General Manager of Quyi.com, told VCBeat that following the completion of this financing round, Quyi.com has also established a deep strategic partnership with Baidu. “Baidu is shifting from connecting people with information to connecting people with services. This includes Dumi, launched at the Baidu World Conference, which aims to build connections between people and services, enabling users to directly access the services they need. Meanwhile, we have been dedicated to building a healthcare platform centered on hospital-patient services, promoting convenient medical care across China’s healthcare institutions and improving patients’ efficiency in accessing medical services.”

1,000 Hospitals Onboarded: QuYi Network’s Multi-Dimensional Product Architecture

“Hospital+” platform is the core product of QuYi Network. QuYi Network owns multiple brands, including “Qu Hospital,” “QuYi Online Hospital,” and “QuYi Business,” all of which are built upon the “Hospital+” platform.

According to data from Quyi.com, the “Hospital+” platform is deeply integrated with hospitals’ internal business systems. The “Qu Hospital” app provides end-to-end medical services, including appointment scheduling, report retrieval, payment, and inpatient management, and will support tiered diagnosis and treatment as well as two-way referrals in the future. “Quyi Network Hospital” is an online video consultation service platform that enables patients to conduct video consultations with physicians via mobile devices. The “Quyi Business” product, soon to be launched, focuses on providing healthcare institutions with communication and information exchange platforms for interacting with suppliers. Quyi.com’s “Hospital+” platform supports open access to various third-party services, thereby facilitating healthcare institutions’ transition from traditional service models to mobile internet-based service models and reducing user costs.

Li Zhi, Chairman of Quyi.com, stated that the company’s resource accumulation on the hospital side has taken a leading position in the industry. Currently, more than 1,000 public hospitals in China have joined the “Qu Hospital” platform. The number of domestic public hospitals cooperating with Quyi.com is expected to exceed 2,000 this year, with the number of deeply integrated hospitals poised to reach 1,000. It is projected that by the third quarter of 2016, over 70% of tertiary hospitals in China will have launched services via the “Qu Hospital” App.

Zhang Zhenhua told VCBeat that Quyi Network Hospital has already been implemented at the First People’s Hospital of Mengcheng and the Second Affiliated Hospital of Henan University of Science and Technology. Moving forward, Quyi will also advance the implementation of its insurance and pharmaceutical merchant platforms. In addition to integrating with hospitals, Quyi extends hospital services directly to users. “Currently, the Quyi App has approximately 10 million registered users,” he stated.

Jingyi Shares and Quyi Network

Quyi Network was initiated and established by Kyee Group, founded in May 2014. In September, it secured $8.5 million in Series A financing from Honghui Capital and SoftBank China Capital.

Kyee Group, also chaired by Li Zhi, boasts 11 years of experience in the field of healthcare informatization and is highly familiar with hospital business processes and IT systems. Zhang Zhenhua stated that this is an advantage traditional internet companies lack. “Hospital information systems vary significantly; even different branches of the same hospital may have entirely different systems. This poses a significant challenge for Quyi, which has already connected with over 1,000 hospitals. Kyee’s experience provides substantial support to Quyi Network.”

Zhang Zhenhua also told VCBeat that the entity raising $40 million in this round is Quyi Network, while Jingyi Holdings had recently completed its Series C financing of over RMB 200 million.

Exploration of Business Models

Li Zhi stated that healthcare is an inelastic demand, while rehabilitation and chronic disease management are extended services related to medical care. Quyi Network aims to help hospitals and patients build a platform to improve the medical experience, and then establish various supporting O2O third-party access business models related to medical health on its platform.

Following this Series B funding round, Quyi Network will intensify its development of the “Hospital+” platform, significantly expanding the platform’s service reach. This will help medical institutions transition to internet-based service models and improve patients’ healthcare experience. Zhang Zhenhua stated that Quyi Network, which already has a team of 500 employees, will continue to explore innovations in areas such as health insurance and pharmaceuticals. Meanwhile, Quyi Network will collaborate with Baidu to pioneer innovative healthcare service models, aiming to establish a closed-loop online-to-offline (O2O) service ecosystem and realize its vision of “connecting people with services.”