WeDoctor, one of China’s leading online healthcare platforms, has secured over RMB 1 billion (almost $150 million) from an undisclosed state-owned industry investment fund in eastern China’s Shandong Province following setbacks in its attempts to raise capital through a public share sale, reports Deal Street Asia.
The Tencent-backed startup collected the fresh funds from the state investor as Chinese startups face tighter listing rules, particularly if they collect sensitive user data like the medical information that We Doctor handles, on top of the COVIDinduced global market slowdown and a sluggish initial public offering (IPO) market.
The latest valuation of WeDoctor was not disclosed, according to a Monday statement released by Fosun RZ Capital, an earlier investor of WeDoctor. The capital raise followed WeDoctor’s plan to lay off a substantial number of employees to a total of mid- to low-2,000s from about 4,000 last year, as it weighs going public through a potential merger with a special purpose acquisition company (SPAC), Bloomberg reported in March, citing people familiar with the matter.
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