SHANGHAI (Reuters) – Chinese online healthcare solutions platform WeDoctor, which is backed by tech giant Tencent Holdings Ltd (0700.HK), said on Wednesday it had raised $500 million at a valuation of $5.5 billion ahead of a listing this year.
Founded in 2010, WeDoctor provides diagnosis and online appointment booking. Users can also consult doctors through the platform.
The pre-IPO fund raising comes after rival Ping An Good Doctor, formally known as Ping An Healthcare and Technology Co Ltd (1833.HK), raised $1.1 billion in an IPO this month but saw its shares tumble soon after as investors worried about its high valuation.
WeDoctor is among a spate of technology-driven firms looking to shake up China’s overburdened public healthcare market, with increasingly affluent consumers eager for ways to get more convenient access to doctors and health services.
The firm said it would use the funds to accelerate its expansion plans, helping it better tap into the country’s “flourishing and enormous market”.
WeDoctor, which has four main units focused on healthcare, cloud, insurance and pharmaceuticals, said it has on its platform over 2,700 hospitals, 220,000 doctors, 15,000 pharmacies and 27 million monthly active users.
Reporting by Adam Jourdan; Editing by Edwina Gibbs