Waterdrop Company Completes near 500 Million RMB of Series B Financing

Together with its three major business lines of Waterdrop Crowdfunding, Waterdrop Mutual and Waterdrop Insurance, Waterdrop Company (collectively referred to as “Waterdrop”) has officially announced the completion of its Series B financing on March 27th, amounts to of almost 500 million RMB. The investment was led by Tencent and co-invested by Banyan Capital, IDG Capital, BlueRun Ventures, Sinovation Ventures, DST Global’s Founder Yuri Milner, the former CEO of Tencent’s E-Commerce Company – Wu Xiaoguang and other reputable investors. Data collected from platforms including Itjuzi, Sinovation Ventures and Crunchbase shows that, the Series B financing of Waterdrop is one of the largest deals in the Insurtech and healthcare market in China, since the global economic slow-down in 2018.

Waterdrop’s founder and CEO Shen Peng stated, “In the year of 2019, we are aiming to provide more affordable medical alternatives including crowdfunding, mutual and insurance products. We will also try to perfect our user experience by establishing a complete medical support system. As for the Series B funds raised, we would deploy them on building a more seasoned and extensive health insurance team and to better utilize AI application in our insurance services.”

As a returning investor of Waterdrop (supported Angel financing, Series A financing, Series B financing) Yu Haiyang, the Managing Director of the M&A Department of Tencent stated, “We always perform thorough and extensive research and analysis before making an investment. Each investment is made in the most well-performed company in the segment. Tencent is optimistic about the market potential of Internet health insurance. Waterdrop’s management team is energetic, with exceptional learning abilities and adaptive to the evolving Internet environment. The team exhibits strong capabilities as the industry leader in the health insurance market in China’s third, fourth and fifth-tier cities. We’ll continue to support the company and are looking forward its rapid business expansion.”

Banyan Capital, which has invested in several well-known companies including Pinduoduo and Huya.com, co-led Waterdrop’s Angel series and co-invested in Waterdrop’s Series B financing. Banyan Capital’s co-founder Zhang Zhen said, “To provide healthy individuals with sufficient insurance protection, as well as aiding those who are in need of help during disease-stricken times is a very philanthropic cause. Shen Peng is an extraordinary young entrepreneur, hoping to give back to the society through utilizing the internet technology. We have a strong belief that with its remarkable and achieving team members, Waterdrop would become the next business leader in the Insurtech space.

Over the past three years, Waterdrop expanded its business rapidly in China’s third, fourth and fifth-tier cities. Waterdrop Crowdfunding, together with Pinduoduo, Kuaishou and Qututiao, are referred to by the media as the “four kings of user coverage domination in the lower tier cities”. Waterdrop becomes the next unicorn in the Insurtech industry, soundly positioned itself as the first-tier company in China’s Internet Health Insurance space. Due to the global economic slow-down since the third quarter of 2018, fewer investments were made to the new economic field. However, the valuation of Waterdrop spiked since its Series A financing, resulting from a healthy business growth and overwhelming support from many first-tier investors.

Waterdrop’s core businesses include Waterdrop Crowdfunding, Waterdrop Mutual, Waterdrop Insurance, the aforementioned mainly operates on WeChat ecosystem, including official accounts and mini programs.

Waterdrop Crowdfunding is the leading major illness support internet platform in China, as well as the pioneer of 0 service fee business model in the industry. Waterdrop actively resonates with the Governments’ plan of poverty alleviation, targeting specific issues such as poverty resulting from high medical-care expenses and providing medical-care services for the poor. As of the end of 2018, Waterdrop Crowdfunding has successfully helped hundreds of thousands of major illness patients who are in financial difficulty, by providing free crowdfunding services. Cumulative funds raised reached over 12 billion RMB and number of donations reached over 400 million. Waterdrop Crowdfunding outperforms its competitors through its innovative business model and continuously providing exceptional service.

Waterdrop Mutual is the most advanced medical funds internet mutual support platform in China, through each members’ mutual aid effort, members collaboratively help each other during disease-stricken times and prevent the aforementioned poverty resulting from medical-care expense issue. Waterdrop provide its members with value-for-money, low threshold, and affordable medical-care protection. Currently, the effective enrolled members exceeded 75 million users, paid out over 350 million RMB in mutual aid fund and assisted more than 2500 families.

Waterdrop Insurance is an innovative Internet insurance platform which is in cooperation with more than 50 renowned insurance companies domestically, and launched more than 60 value-for-money insurance products with a strong competitive edge. Waterdrop Insurance emerged from the rest with its “traffic-directive scenarios” and with over 10 million users.

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