Venture Capital: Chinese Insurtech Waterdrop Lands $230M in Pre-IPO Funding

August 21, 2020 | News, Venture Capital

Waterdrop is a Chinese online seller of insurance, an illness “mutual aid” crowdfunding platform, and a mutual fund operator.

Waterdrop Inc raised $ 230 million in funding led by Swiss Re (SWX: SREN) and Chinese Internet giant Tencent Holdings (HKG: 0700). Existing investors including IDG Capital and Wisdom Choice Global Fund also participated. (Reuters)

According to a Reuters source, Swiss Re committed $ 100 million to the funding round. The fundraising was conducted at a valuation of nearly $ 2 billion.

Waterdrop, an insurtech and crowdfunder

Headquartered in Beijing, Waterdrop sells insurance policies online through its Waterdrop Insurance Mall. It facilitates business crowdfunding via its Waterdrop Crowdfunding platform. It also operates mutual funds.

Users in the medical mutual aid business contribute very small amounts (a water drop) for funding a mutual medical benefits scheme. In case of a medical emergency, the firm pays out as much as $43,000.

Waterdrop was founded in 2016 by Shen Peng. He was a former executive at Chinese food delivery and local services giant Meituan Dianping.

On its website, Waterdrop also says it is a strategic investment by Tencent Holdings.

Its insurance business boasts of 120 million unique policyholders. They paid a premium of $ 865 million in the first half of 2020.

Use of funds

“Our long-term goal is to become a leading online healthcare platform in China with an ecosystem that includes insurers, pharmaceutical companies, hospitals, and drug stores, as well as nursing institutions and rehabilitation institutions,” says Peng Shen, in a statement, according to TechCrunch. “We are committed to not only helping users with financing issues but also providing them with integrated healthcare services along the way.”

Waterdrop will use the new money to develop artificial intelligence systems and big data applications for all its products and services. It also intends to expand and accelerate its current medical and healthcare businesses.

“As a leading online InsurTech company, Waterdrop is well-positioned to tackle the pain points of traditional insurance and pave the way for future breakthroughs in the industry, such as the accelerated technological innovation and digitalization of the industry worldwide that we have witnessed during the COVID-19 situation,” said Ning Zhou, Head of principal investment and acquisition for Asia, Swiss Re to Reinsurance News.

Waterdrop also plans on a US IPO. It has hired Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS) for managing the issue.

Related Story:     Hippo, The Home Insurance Unicorn, Raises $150M                                             

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News × 1200.jpg
FinTech: Buy-Now-Pay-Later Lender Affirm Raises $500M
September 18, 2020     FinTech, News

Affirm announced Thursday its raise of $500 million in a G Round led by GIC and Durable Capital Partners LP. Other investors included Lightspeed Venture Partners, Wellington Management Company, Baillie…
Venture Capital: Tonal, The Smart Home Gym Startup, Taps $110M
September 18, 2020     Artificial Intelligence, News, Venture Capital

Tonal, a startup that makes compact, AI-powered, wall-mounted home fitness equipment, announced Thursday its raise of $110 million. Returning investors L Catterton, Sapphire Sport, Shasta Ventures, Mayfield, Evolution Media, and…
Artificial Intelligence: An AI-Controlled House Built By A Computer Scientist
September 18, 2020     Artificial Intelligence, News, Real Estate

It’s a striking, futuristic residence that commands panoramic views, combines home with a place to work, and is controlled by artificial intelligence having its own data center. Based outside Prague,…
Digital Assets: Kraken Digital Exchange Wins U.S. Bank Charter
September 18, 2020     Digital Assets, FinTech, News

The State of Wyoming greenlighted Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI). Kraken Financial, the new entity, can operate as a fully independent bank and…