China-based digital hospital and drugstore operator Shanghai Pharma Health (SPH) Commerce completed an RMB1.03bn ($160m) series B round last month featuring diabetes management technology provider Sinocare, Sina Finance has reported.
JIC Investment, a vehicle for investment firm China Jianyin Investment, co-led the round with local government-backed Shanghai Biomedical Industrial Equity Investment Fund. It included Ample Harvest Finance, New Alliance Capital, Shanghai Sitico Asset Management and Huadong Industrial.
Founded by pharmaceutical firm Shanghai Pharmaceuticals in 2015, SPH has developed a cloud-based, online-to-offline (O2O) service that leverages the group’s offline retail capabilities and encompasses areas of healthcare including electronic prescription, drug and patient data.
The funding cut Shanghai Pharma’s stake in SPH from 72.7% to 48%, and the proceeds will go towards expanding the company’s pharmacy network across China. SPH has also acquired two drugstore chain operators alongside the deal: Guangzhou Baiji Xinte Pharmaceutical Chain and Cardinal China.
Shanghai Pharma joined e-commerce group JD.com and venture capital group IDG Capital in a $172m series A round for SPH in August 2015.
The series A funding was followed by a $20.8m series A-plus round seven months later backed by SoftBank China Venture Capital, a subsidiary of telecommunications and internet firm SoftBank, and Shanghai Charity Foundation.
