Caixin
Aug 21, 2020 04:51 AM
BUSINESS & TECH

Tencent-Backed Online Insurer Waterdrop Raises $230 Million

What’s New: Waterdrop Inc., an online insurance startup backed by Chinese internet giant Tencent Holding, wrapped up a new funding round to raise $230 million for investment in artificial intelligence and big data applications, company founder and CEO Shen Peng said Thursday.

Swiss Reinsurance Co. Ltd. and Tencent led the Series D fundraising, with investors including IDG Capital and Wisdom Choice Global Fund. The insurance tech startup is valued between $4 billion and $6 billion following the funding round, a company source said.

The Background: Established in 2016, Beijing-based Waterdrop operates a platform linking insurance companies and customers. One of Waterdrop’s main businesses, Water Mutual, allows people to chip in small amounts of money to help others diagnosed with critical illnesses and in return receive payouts when they are in need. The company also plans to expand its services to allow users to reach medical and health management services.

Waterdrop completed its last funding round of more than $1 billion in 2019. The market has been speculating on a possible initial public offering. A company executive said Thursday that Waterdrop is open to a public listing but there has yet to be a timetable.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com).

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