Yaoshibang, a Guangzhou-based online pharmacy trading and education platform, announced that it has completed a RMB420 million (US$65.7 million) series C round led by Shunwei Capital and DCM Ventures.
The firm said its series C1 round was led by Shunwei Capital and participated by Green Pine Capital Partners and Elevation China Capital. Its series C2 round was led by DCM Ventures and participated by SIG. With the new round, the firm has raised more than RMB600 million (US$93.8 million).
Founded by Zhang Buzhen, former vice president of Chinese online real estate portal Soufang.com in 2015, Yaoshibang started as a B2B pharmaceutical trading platform. It also provides educational services, database of diseases and drugs, and career services to pharmacists.
It has more than 150,000 active users and its monthly gross merchandise volume reached RMB500 million (US$78 million).
Proceeds of this round will be used for the firm’s national expansion, optimization of its supply chain and update of its SaaS service.
"Yaoshibang’s team has rich experience in pharmaceutical distribution. The firm is well respected in the industry. Shunwei is positive about its future growth," said Cheng Tian, partner at Shunwei Capital.
Last year, China issued a new policy designed to streamline pharmaceutical distribution channels. During the distribution process from drug manufacturers to hospitals, only two layers of distributors are allowed, compared with multilayer of distributors in the past, to reduce costs and prevent corruption. Cheng said the new policy will provide business opportunities to online pharmacy platforms such as Yaoshibang.
Previously, Green Pine Capital Partners and Chinese conglomerate Fosun Group have led a RMB110 million (US$16 million) series B round in Yaoshibang in the end of 2016.