Home Funding Chinese insurtech firm Waterdrop Inc. raises US$ 230M

Chinese insurtech firm Waterdrop Inc. raises US$ 230M

Waterdrop Inc.

China based insurance technology firm Waterdrop Inc. raised US$230 million in its latest funding round on 20 Aug 2020. Its current valuation stands at US$ 450M.

The funding round was led by reinsurer Swiss Re and Chinese internet giant Tencent Holdings. Other participants in the round include IDG Capital and Wisdom Choice Global Fund, which are also Waterdrop’s existing investors.  According to a report by Reuters, Swiss Re invested US$ 100 million in the firm.

Waterdrop Inc. said that the funds raised will be invested for expansion in the Chinese market. It also plans for US initial public offering. Bank of America and Goldman Sachs will be Waterdrop’s advisors for the listing which is likely to happen before the year end.

Waterdrop Inc. is an insurance platform which solves the issue of high medical fees faced by patients, particularly those suffering from critical illnesses. It offers three products- mutual insurance, crowdfunding and commercial insurance. The services of the company are conducted via its WeChat Account. Users can campaign there, buy insurances or could claim indemnities as per their policies. It distributes its insurance policies online via Waterdrop Insurance Mall.

Waterdrop Inc. was founded in 2016 and is headquartered in Beijing. It was founded by Shen Peng, a former executive at Chinese food delivery and local services giant Meituan Dianping.

The company claims that it has over 120 million unique policy holders and has total written premium of US$ 865M in first half of 2020. The new capital will be used to develop artificial intelligence and big data for its products and services, said Waterdrop Inc. With the new capital, Waterdrop said it will tap into artificial intelligence and big data for its products and services and accelerate its initiatives in medical and healthcare services. 

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Komal writes about the startup ecosystem on VCBay. She is an Economics Hons. graduate from Miranda House, Delhi University, and is passionate about the world of entrepreneurship and finance.

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