Gu Sheng Tang, a Guangzhou city-based traditional Chinese medicine clinic franchise, has raised a RMB1.01 billion (US$150 million) series D round from a number of Chinese stated-owned enterprises and financial institutions.
The new funding round consists of RMB510 million (US$75 million) in equity financing and RMB500 million (US$74 million) in debt financing. Investors including China State-owned Capital Risk Investment Fund, China Life Insurance Co., Ltd., CMB International, China Orient Asset Management Co., Ltd., as well as two unnamed government guidance funds, participated in the deal.
Founded in 2010, Gu Sheng Tang operates a network of traditional Chinese medicine clinics under a partnership model with doctors. Gu Sheng Tang owns 70% of any new clinic in its network, with the partnering doctors holding the remaining 30%. Gu Sheng Tang is responsible for the management and back-end operations of the clinics, while doctors can focus on treating and consulting with patients.
The company says this model frees doctors from cumbersome back-end operations and allows for the wholesale purchase of medical equipment for its franchise clinics. The company has established 31 clinics in 13 cities, including Beijing, Guangzhou, Shenzhen and Shanghai. Its clinics have over 1,500 Chinese traditional medicine experts, with over five million patients visiting the clinics last year, according to a company announcement.
Gu Sheng Tang previously raised a US$70 million series C round from Ping An Insurance in 2016. One year prior, it completed a US$25 million series B round from venture capital firm NEA and Fidelity International Ltd.’s investment arm Eight Roads. In 2014, it raised an undisclosed amount from a series A round from NEA.