JD’s health care unit vaults into No 2 spot for new unicorns with US$7 billion valuation
- Deloitte forecast that China’s online pharmacy sector will be worth 400 billion yuan (US$57 billion) in 2020
The health care subsidiary of e-commerce giant JD.com was ranked as the most valuable among 22 new unicorns that emerged in China last year and No 2 worldwide, but what may be even more impressive is that it claims to be profitable in an industry that shows great promise but has yet to prove lucrative for most players.
Spun off from JD.com in May, JD Health completed its latest funding round of US$1 billion in November that valued the start-up at roughly US$7 billion, joining the so-called unicorn club that includes private firms with valuations greater than US$1 billion.
Investors in the latest round included CPE China Fund and CICC Capital, with JD remaining the majority owner of the unit.
JD Health operates an e-commerce platform selling products such as vitamins, supplements, medical devices and contact lenses, as well as offering services including health checks, beauty clinics and gene testing in partnership with specialised institutions. The business also taps into the wholesale drugs market and web-based hospital services.
Deloitte forecast that China’s online pharmacy sector will be worth 400 billion yuan (US$57 billion) in 2020, spurred on by easing of regulation, improvements in logistics and the trend towards consumers shopping online.