TPG leads $220m investment into Dingdang Health

Dingdang Health, China's leading integrated online healthcare platform, announced on Tuesday that it has raised $220 million in its latest round of financing led by TPG Capital Asia.

Co-led by OrbiMed and Redview Capital, the round also attracted investors including Valliance; Travis Global Ltd, which is an affiliate of Orchid Asia; Summer Capital; and Yingke PE.

Yang Wenlong, founder and chairman of Dingdang Health, said: "With this round of financing, Dingdang Health will press ahead with its online-to-offline strategy to cover services including medical care, medicine delivery and medical insurance."

"Riding on the new trend of online medical care and medication services amid the COVID-19 pandemic, the firm aims at providing all-encompassing online services catering to various needs including consultation, drug purchases, chronic disease management and psychological consultation through product upgrades and technological innovation," Yang said.

"Investors such as TPG, OrbiMed and Redview Capital have extensive investment experience in the health field. Moving forward, with their support, we will remain devoted to accelerating the digitalization of medical care and medication, providing comprehensive service for customers," he added.

As a pioneer of online healthcare products and a service provider, Dingdang Health's online-to-offline model enables it to supply drugs from the pharmaceutical manufacturers and offline pharmacies to meet users' urgent medical needs. 

The company has also expanded its business to more areas such as medical care, medicine delivery and medical insurance. The strategy has helped the platform remain competitive in China's digital health and wellness market.

Lydia Cai, managing director at TPG Capital Asia, said: "The public demand for digitalization and healthcare has become increasingly acute under the new normal due to COVID-19 pandemic. Dingdang Health's business model perfectly combines both digitalization and healthcare."

"Leveraging big data and internet technologies, the company has created a pioneering self-operating model that provides online medical care and medicine delivery services. It links pharmaceutical companies, pharmacies and users in an all-encompassing ecosystem with timely and caring services," Cai said.

As the company evolves into an integrated healthcare provider, TPG is optimistic about its technology, model and potential, and will fully support its rapid growth to benefit more users, she added.

TPG is a leading global alternative asset firm founded in 1992 with more than $91 billion of assets under management. It is one of the early international private equity investment giants that created a dedicated healthcare investment team. It has extensive investment experience in this space globally.

"Dingdang Health's capabilities in both technological innovation and professional healthcare allow ordinary people to have medical consultation and purchase medicines without leaving their homes," said Iris Wang, partner of OrbiMed.

Xin Wang, partner of Redview Capital, said: "Redview Capital is committed to collaborating with industry-leading companies with innovative capabilities. Dingdang Health has been engaged in the online medical care and pharmacy field for many years."