Tencent and Jeneration Capital Lead $ 305 Million Series E1 for Medbanks

Tencent and Asia-based growth capital asset manager Jeneration Capital jointly led a nearly 2 billion yuan ($ 305.3 million) investment in China’s oncology medical services platform Medbanks.

The transaction is Medbanks’ E1 series turn and Tencent’s fifth investment in the company. The Chinese social media and gaming giant led the company’s D + series cycle in November 2019, in which MedBanks raised around 1 billion yuan.

Tencent first invested in the startup in 2016 and doubled its position by joining Medbanks’ Series C round totaling tens of millions of US dollars in early 2018, as well as its Series D round of 400 million yuan in January 2019.

The new round was also backed by 5Y Capital, an investment firm formerly known as Morningside Venture Capital; Forebright Capital, a spin-off of state-owned China Everbright Limited; and Wu Capital, the family office of Chinese real estate tycoon Wu Yajun.

A large-scale private insurance investment fund participated in the deal, Taihecap, the Beijing-based exclusive financial adviser to the deal, said on Monday.

Founded in 2014 and known entirely as Medbanks Network Technology, the startup is a one-stop-shop, big data-driven medical and healthcare provider. The company helps medical institutions and pharmaceutical companies coordinate clinical trials for the application of new drugs and facilitate their efforts in the promotion and commercialization of approved products.

Medbanks claims to be one of the largest oncology-focused Site Management Organizations (SMOs) in China, which refers to providers of services related to clinical trials. Its clients in this industry include contract research organizations, drug manufacturers, biotechnology companies, medical device developers and clinical sites.

The startup connects with more than 20 insurance companies, through which it uses big data capabilities to design and deliver personalized healthcare and insurance products to individuals and businesses. It also operates a network of nearly 80 pharmacies in 56 cities and 29 provinces in China, providing drugs, medical devices and nutritional supplements to consumers.

At the end of the E1 series cycle, the startup aims to further strengthen this “closed loop” ecosystem that serves key players in China’s medical treatment and healthcare industry.

Medbanks’ secular growth in recent years has benefited from Beijing’s support for the development of remote health services, the internet, and advanced technologies to fill gaps in the country’s huge but fragmented public health system.

The Chinese medical treatment and health care market ushers in a new era of additional opportunities brought by “deep reform and upgrading of the market,” the company’s chief financial officer Zhou Teng said in the statement. “The demand of families for reliable, thoughtful and high-quality medical management and health services has opened up a long and spacious ‘ski slope’ [for market participants]. “

This article was originally published by Deal Street Asia

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