Internet group Tencent is investing about $150m in China-based digital healthcare insurance service Waterdrop, Bloomberg reported yesterday.
Waterdrop offers healthcare insurance products that are administered and paid for through Tencent’s messaging and social media app, WeChat. The service includes a cooperative insurance plan where customers can pay micro-fees to collectively cover treatment costs for members of the scheme who later fall sick.
The cash will enable Waterdrop to upgrade its platform in a bid to keep pace with its competition. It is working with Bank of America and Goldman Sachs Group to prepare an initial public offering that would potentially value it at $4bn.
The company received $230m of funding in an August 2020 round co-led by Tencent and insurance firm Swiss Re – which committed about $100m – that included IDG Capital and Wisdom Choice Global Fund at a reported $2bn valuation.
Private equity firm Boyu Capital had led Waterdrop’s $145m series C round in June 2019, investing together with Tencent, Gaorong Capital and CICC Capital.
The June funding came two months after a $74.3m series B round led by Tencent and backed by IDG Capital, Gaorong Capital, BlueRun Ventures, Sinovation Ventures, Wu Xiaoguang and Yuri Milner. The company’s shareholders also include local services portal Meituan Dianping.