China-based e-commerce group JD.com has agreed to raise an amount expected to be more than $1bn for its healthcare arm, JD Health, according to a financial statement released on Friday.
CICC Capital, the private equity arm of investment banking firm China International Capital Corporation, is set to provide the capital along with private equity firm Baring Private Equity Asia and CPEChina Fund, a fund run by a subsidiary of alternative investment manager Citic Capital.
JD Health’s operations cover a range of activities including storage, shipment, delivery and customer services for customers in the healthcare sector.
Customers can also access local doctors through the platform, and the company has been trialling a scheme where customers can buy over-the-counter drugs on the platform after being diagnosed online by its physicians.
The capital will be supplied as part of a series A round that will value the spinoff at approximately $6.9bn. It intends to use the funding to expand its core business while moving into new areas and hiring from within the healthcare industry.
