Investment boom in the Chinese market has almost vanished. Direct investments into China slumped from 89 to 42 between February 11 and 17, according to a report released by Chinese tech news aggregator itjuzi.com (IT桔子).
There were 11 investments in China’s healthcare sector, accounting for 26% of the funds raised during the time. Software as a Service (SaaS) and transportation followed at 18% (6) and 12% (5) respectively of the investments. (See details in the chart below)
As usual, Chinese enterprises focused more on early-stage funding rounds (17 Series A and seven Angel). There were only six acquisitions, said the report.
While Alibaba (阿里巴巴) and JD.com (京东) leveled up their investments in entertainment, e-commerce and O2O, other firms, fueled by people's growing healthcare demand and policy support, continued to embark on healthcare sector. Let’s take a closer look at some of the important financing rounds.
On February 14, Alibaba Group announced that its e-commerce retail unit Taobao (淘宝) bought 8% stake (24 million shares) in Bilibili (哔哩哔哩), a leading Chinese online video platform which listed on the Nasdaq in March 2018, reported China’s Xinhua news agency (新华社).
The transaction will consolidate business collaboration between the two sides, which could develop a dynamic ecosystem for the duo and allow Bilibili to boost its users by leveraging Taobao’s resources.
On February 11, Indian online food and grocery giant BigBasket closed a USD 150 million financing round, reported itjuzi.com. Alibaba was estimated to invest USD 50 million in the deal. According to the media source, the funding round will value BigBasket at above USD 1 billion, making it a new member of global unicorn club.
With the fresh funds, BigBasket will venture into new cities and categories like micro-delivery, said itjuzi.com.
On February 11, China’s second largest e-commerce company JD.com acquired 100% ownership of Beijing Jade Palace Hotel (北京翠宫饭店) for CNY 2.7 billion (USD 400 million), according to China Daily, the largest English portal in China.
JD.com said that the proceeds will be used to convert the Jade Palace Hotel into a venue primarily for technology innovation and commercial business.
On February 14, Chinese cab-hailing behemoth Didi Chuxing (滴滴出行) invested USD 100 million in Indian hospitality chain OYO Hotels and Homes, which valued OYO at USD 5 billion. The investment has been made from Didi-owned venture Star Virtue Investment.
The budget hotel chain said that the fresh injection will be used for its Chinaand India operations, and will boost its rapid expansion into new markets like the United States.
On the same day, Chinese biotech company Burning Rock Biotech (燃石医学) completed a CNY 850 million (USD 126 million) Series C round led by Singapore’s sovereign wealth fund GIC, and followed by venture capital firms LYFE Capital (济峰资本), CMB International Capital (招银国际), Lilly Asia Ventures (礼来亚洲基金), Sequoia Capital China (红杉资本中国基金) and T&Brothers Capital.
The latest capital infusion will be used primarily for development of early cancer detection products and expansion of Burning Rock's sales and marketing force for its diagnostics business, said the company.
Meanwhile, Chinese biotechnology startup Nanjing Bioheng Biotech (北恒生物) announced that it has closed a CNY 100 million (USD 15 million) Series A financing round with all of the funds invested by leading investment firm Decheng Capital (德诚资本).
Bioheng Biotech said that the funds will be used to hire additional personnel, build GMP manufacturing facilities and develop "off the shelf" universal immunotherapy products, according to financial markets specialist Seeking Alpha.
Check out details in the chart below.