Financial services firm Orix Corp has led a RMB250 million (US$39 million) series A round in Innostic, a Chinese medical consumable supply chain management platform.
Qiming Venture Partners, June Lead Capital, Qiaojing Capital and Baoyue Capital also participated in the round, according to a company announcement.
The medical devices industry has grown sharply over the past few years. The market size is expected to reach RMB600 billion in 2019, up from RMB370 billion in 2016. Medical consumables are the third largest part of the industry behind imaging devices and in vitro diagnosis, accounting for 13%, according to data from China Food and Drug Administration. Medical consumables cover a very wide assortment of goods, ranging from sanitary napkins, to blood collection tubes and oxygen.
Founded in 2010 and headquartered in Shanghai, Innostic offers supply chain management solutions for healthcare companies. Its services include centralized distribution, storage, financial services, medical consumable management solutions and data services.
The company claims that it now has 20 wholly-owned subsidiaries, covering all provinces in China except Tibet. Almost 1,000 healthcare institutions are now using its supply chain and distribution services, the company says.
Innostic plans to use the latest proceeds to expand its business in the fields of orthopaedic, surgery and oculist.