GTJA Investment Group, a Shenzhen-based private equity firm focused on the healthcare sector in China, has led a US$30 million series B round in Wellem, a pediatric clinic franchise operator currently running 11 branches in China.
Founded in 2014, the Shanghai-based pediatric clinic operator focuses on providing private medical care for children aged from newborn to 18-years-old. Positioned as an American-style pediatric clinic, Wellem’s services include allergy and endocrine treatments; dental and vision cares as well as child growth checkups. Currently, it operates 11 branches in Shanghai, Shenzhen and Hangzhou.
“With the relaxation of China’s one-child policy, good pediatric services have become in high demand. Wellem is a high-end American-style pediatric clinic operator. With years of experience, Wellem has developed a mature pediatric care system…and will grow rapidly in the future,” said Sun Jialin, an executive partner at GTJA Investment.
China has around 20 million newborns every year, with around 200 million of its population aged between 0 to 14. But there are currently only 0.5 pediatricians per one thousand children in China, indicating potential growth opportunity. This has led to numerous venture capital deals backing pediatric clinic start-ups.
In February, Chinese venture firm V Star Capital, Maison Capital and another fund invested RMB70 million (US$10 million) in Rainbow Children’s Clinic, a Shanghai-based pediatric care service provider. One month prior, a RMB fund managed by GGV Capital led a US$20 million series C funding round in a child healthcare center operator founded by well-known Chinese pediatrician Dr. Cui Yutao.