SoftBank-Backed MedTech Startup Dingdang Kuaiyao Raises US$150M Series B+

Dingdang Kuaiyao operates a chain of pharmacies and offers doorstep delivery for over-the-counter medicines.

Chinese online-to-offline (O2O) drug retailer Dingdang Kuaiyao has completed its second tranche of Series B financing with RMB1 billion (US$150 million) raised, dealmaker China Renaissance Capital announced in a statement on Tuesday.

New investors who participated in the current round include Taikang Insurance Group, Haier Medical, and Longmen investment, the statement said. They were joined by existing backers SoftBank China, CMB International, and Sinopharm Zhongjin, among others, it added.

The startup had previously raised RMB600 million ($89 million) in an initial tranche of Series B financing in March 2019, prior to raising an undisclosed sum two months ago, according to a report by KrAsia.

Founder and Chairman of Dingdang Kuaiyao Wenlong Yang said that the latest financing will be used to accelerate the startup’s expansion plans, and for product and service innovation. The company plans to launch its services in 10 more cities in China by the end of 2020, and cover all first, second, and third-tier cities by 2021, he added.

Beijing-headquartered Dingdang Kuaiyao was established in 2014. It currently operates smart pharmaceutical retail stores in over 10 cities in China, and claims to serve ‘tens of millions’ of users through its mobile-friendly platform and physical stores.

The startup delivers over-the-counter medicines to customers round-the-clock, and promises delivery in 28 minutes within a certain radius. Additionally, Dingdang Kuaiyao leverages AI and big data to offer innovative services like online medical consultation, and health and chronic disease management, the statement noted.

Taikang Assets Managing Director and Strategic Equity Investment Head Jun Xu said, “Dingdang Kuaiyao provides users with immediate needs through a deep understanding of user needs and timely response to health needs.”

“Relying on its supply chain advantages and offline retail management efficiency, Dingdang Kuaiyao has achieved rapid scale expansion and cross-regional replication through the new drug retail model,” he added.

He further added that Taikang and Dingdang Kuaiyao are collaborating to build an all encompassing healthcare ecosystem. The startup plans to provide customers with efficient and professional health management services through a combination of online and offline models, he said.

According to a report by South China Morning Post, the startup has experienced 700-800% increase in orders compared to before the pandemic. This was largely due to the lockdowns and social distancing measures that were imposed to curb the outbreak, forcing people to resort to and get accustomed to ordering essentials, including medicines, online.

China’s online healthcare industry was valued at RMB133.6 billion ($19.1 billion) in 2019. However, factoring in the effect of the pandemic, the industry is expected to grow a whopping 46.7% this year to reach RMB200 billion ($30 billion).

Header image by Christina Victoria Craft on Unsplash

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

5 Essential Tricks to Master Microsoft Excel

5 Essential Tricks to Master Microsoft Excel

Microsoft Excel (MS Excel) is a must-have for any business. It is a powerful spreadsheet software application that allows users to store, organize and analyze data. While Excel is fairly easy to use, it can be tricky to become an expert. Don’t know where to start? We have compiled a list of easy-to-follow hacks that will help you become a pro at Excel!

Top Three Weirdest Mobile Game Advertisements

Top Three Weirdest Mobile Game Advertisements

Whether on YouTube or Instagram, I’m sure you all must have seen at least one mobile game advertisement. One common trope with today’s mobile game advertisements is that they tend to mislead their audience.
You might have come across these weird ads while scrolling through social media: In the ad for the strategy game “Game of Sultans”, a sultan is fat-shaming his daughter; in the match-three puzzle game “Lily’s Garden” ad, women use washing machines as vibrators.

The Maximalist Fashion Trend Where Did It Come From and Where Is It Going

The Maximalist Fashion Trend: Where Did It Come From and Where Is It Going?

If you Google “maximalist fashion”, you will be swamped with dressing guides dedicated to this “the more, the better” trend published by leading fashion magazines in 2022. Rapidly gaining popularity in the last couple of years, maximalist styles are breaking out of the runway of an Haute Couture fashion show, a red carpet event or a K-pop performance to conquer streets in high fashion neighborhoods.

How Is Technology Influencing the Food and Beverage Industry

How Is Technology Influencing the Food and Beverages Industry?

Food waste, sustainability and animal cruelty are some of the biggest challenges facing the food and beverage (F&B) industry nowadays. Like any other sector, the industry is dipping its toe into technology and innovations to seek solutions. While we are already seeing more food tech solutions in our everyday lives, like plant-based meat alternatives and food waste management startups.

3 Innovations for a Cleaner Environment You Never Heard Of

3 Innovations for a Cleaner Environment You Never Heard Of

Innovation in clean energy, sustainable infrastructure and eco-friendly solutions to environmental hazards are the need of the hour. The burden on the world’s natural recourses is immense, and it is high time we focus on renewability and diversification. While we are only scratching the tip of the iceberg, here are three innovations working to create an environment-friendly future.