JD Health, the medical product retailer spun off by China-based e-commerce group JD.com, agreed an equity investment with hedge fund manager Hillhouse Capital on Monday likely to be over $830m.
The funding will consist of series B shares, according to JD.com’s second quarter results announcement. Hillhouse took part in JD.com’s $65m series C round in 2012, and the company has a market capitalisation exceeding $100bn today.
JD Health sells and delivers a range of products including prescription medication, medical supplies, contact lenses and vitamins in addition to offering online medical consultations for a range of conditions.
The deal comes after the spinoff introduced virtual treatment centres for traditional Chinese medicine and ear, nose and throat care, adding to those already focused on heart disease, cancer, diabetes, kidney disease, paediatrics, maternity and mental health.
Hillhouse’s series B investment is expected to close by the end of next month. The capital will be used to ramp up JD Health’s pharmacy supply chain and analyse the potential for added services in the wider healthcare industry.
CICC Capital and Baring Private Equity Asia had joined Citic Capital’s CPEChina Fund to provide about $1bn in series A funding for JD Health in May 2019 at a $6.9bn valuation.
