Tencent Makes USD70 Million Bet On Chinese Healthcare Social Networking
Tencent Holdings Limited is investing USD70 million into Ting Ting Group, the owner of Chinese online healthcare service community DXY.cn.
Tencent gains a minority equity stake of DXY on a fully diluted and as converted basis, and the deal is expected to close soon.
DXY plans to invest the capital into developing healthcare products for doctors, pharmaceutical companies, and consumers. Its priority is to create better products and content for doctors in China and to bring doctors and pharmaceutical companies together on a single Internet platform that can be accessed through multiple channels and allows for a more legally compliant and effective way of exchanging ideas and knowledge.
Previously, DXY completed two rounds of investments from DCM and Shunwei China Internet Fund. Following this round of investment, DXY's founding management team will continue to have a majority stake in DXY and have a majority of its board of directors. David Feng, vice president of DXY, and Richard Peng, vice president of Tencent, will become DXY's newest board members.