Waterdrop Inc. has completed a $230 million Series D funding round, co-led by Swiss Re Group and Tencent.
Leveraging internet technology to ensure accessible, affordable healthcare for the masses — safeguarding hundreds of millions of families.
At its Waterdrop Insurance Mall Global Partners Conference on August 20, Waterdrop announced that it had completed a $230 million Series D financing round, co-led by Swiss Re and Tencent, with follow-on investments from existing shareholders including IDG Capital and Light Up Global Fund. Gaorong Ventures was a co-lead investor in Waterdrop's angel round and has continued to back the company through its Series A, B, and C rounds, doubling down again in this round with steadfast support throughout.
Founded in 2016 by former Meituan founding team member Peng Shen, Waterdrop operates with the mission of "using internet technology to help the broad masses of people access insurance and healthcare, protecting hundreds of millions of families." As a startup focused on health and insurtech, Waterdrop has innovatively built a "fundraising + mutual aid + insurance" ecosystem business model in the Chinese market, helping low- and middle-income populations establish their own personal health protection systems.
Waterdrop founder and CEO Peng Shen
The latest data shows that Waterdrop's insurance mall platform has cumulatively served over 100 million insured users and nearly 60 million households, covering 2,988 cities and counties. Annualized written premiums in the first two quarters of 2020 approached 6 billion yuan, nearly matching the full-year 2019 total. Survey data indicates that 90% of users completed their first online insurance purchase through Waterdrop Insurance Mall, with a repurchase intention rate of 73%, making it the top choice for most users buying insurance. Waterdrop Fundraising has surpassed 320 million caring users, with over 1 billion instances of giving totaling more than 32 billion yuan, making it the leading critical illness fundraising platform in China. Waterdrop Mutual Aid has cumulatively assisted over 12,819 families, disbursing more than 1.615 billion yuan in mutual aid funds.
The Swiss Re entity making this investment in Waterdrop is Swiss Re Principal Investments Company Asia Pte. Ltd., a wholly-owned subsidiary of Swiss Re Ltd and member of the Swiss Re Group. Swiss Re Group is a leading provider of reinsurance, insurance, and other forms of insurance-based risk transfer. Established in 1863 and headquartered in Zurich, Switzerland, it operates through a network of approximately 80 offices worldwide. Upon completion of this investment, Waterdrop will become the first insurtech company that Swiss Re Group has invested in within China. Swiss Re was among the seven cornerstone investors brought in for Ping An Good Doctor's 2018 Hong Kong IPO. Additionally, in June 2020, Swiss Re served as a cornerstone investor for China Pacific Insurance Group's GDR listing on the London Stock Exchange. Swiss Re Group stated that China is a strategically important market. According to projections from Swiss Re Institute, China's online health insurance market will grow at an average annual rate of 43% through 2025. Waterdrop is a leading insurtech platform in China, maintaining a leading position in internet health and medical insurance sales. This investment reflects Swiss Re Group's long-term optimism and commitment to the Chinese market. Tencent has supported Waterdrop since the angel round, led its Series A and B financings, and continued its backing through the Series C and D rounds. Tencent stated it will support Waterdrop's long-term development and help create a better user experience. Waterdrop said this round of funding will further invest in AI, big data, and other technologies across its operations, using the internet and technology to provide users with more efficient insurance protection services, and will accelerate exploration of healthcare and other services around user needs.
Waterdrop completes over 1 billion yuan Series C financing round
