Alphabet’s Verily preps for China entry with Singapore’s Temasek

Alphabet’s medical arm Verily Life Sciences is getting a major influx of cash from a Singapore investment company, boosting the odds of taking their futuristic approach to health care into Asian markets.

Temasek Holdings Pte Ltd, a state-owned firm with US$415.8 billion in assets, is investing US$800 million in Verily, according to a statement from the company Thursday. In exchange, Temasek will get a minority stake in Verily and a seat on its operating board.

“With a substantial network and insights into the economies in Asia, Temasek will provide valuable guidance as we look to ex-US markets with our development partners,” Verily Chief Executive Officer Andrew Conrad, said in the statement.

Temasek’s investment supports the move by Alphabet CEO Larry Page to run each of his subsidiaries as independent companies. The units, which work in disparate industries, vary in their autonomy from Google’s infrastructure and corporate support. To date, Verily has been funded by Google’s massive advertising revenue.

The agreement could also signal Verily’s plans to expand into China. About 23 per cent of Temasek’s portfolio is in China, the largest by underlying asset exposure after Singapore, according to the company. Google pulled most of its services from China in 2010, citing political reasons. But Alphabet has not said whether this ban applies to the other companies under its umbrella.