MaHui | Congratulations to MaHui member Yuanbao Inc. on its successful Nasdaq listing

On the evening of April 30, 2025 Beijing time, Yuanbao Inc., a leading insurtech company, officially listed on the Nasdaq Stock Exchange in the United States under the ticker symbol "YB." The company priced its public offering at the top of its proposed range at $15 per ADS (American Depositary Share). Yuanbao issued a total of 2.3 million ADSs, raising $34.5 million, for a post-IPO valuation of approximately $681 million (assuming the underwriters exercise their over-allotment option in full).

In 2021, Source Code Capital led Yuanbao's Series C financing round and has continued to support the company ever since. During this period, Source Code Capital's venture services team provided Yuanbao with over 100 post-investment services spanning capital markets, business development, marketing and growth, resource matchmaking, and key hires.

At the bell-ringing ceremony. Left: Xingshi Wang, Managing Partner of Source Code Capital; Right: Rui Fang, Founder and CEO of Yuanbao Group.

Founded in 2019, Yuanbao has focused on internet-based life insurance since its inception, targeting the incremental market of inclusive health insurance. By introducing AI technology into every aspect of insurance distribution and claims processing, the company has significantly improved the experience and efficiency of domestic insurance sales and after-sales claims services. According to Frost & Sullivan data, measured by first-year premium, Yuanbao has become the second-largest distributor in China's life insurance market.

In his speech at the listing ceremony, Rui Fang, Founder and CEO of Yuanbao Group, noted that over the past five years, tens of millions of families have been able to access, afford, and choose the right insurance products through Yuanbao, with satisfactory claims experiences — all powered by technology. The Yuanbao team has consistently upheld the belief that "technology should be people-centric and serve people," building a new ecosystem integrating insurance, technology, and services. Today's public listing marks a new starting point for the company to embrace greater opportunities and challenges. Yuanbao will continue to use technology to serve the broader public and set sail toward the vast frontier of insurtech.

Yuanbao stated that the proceeds from this IPO will primarily fund the innovation and upgrade of its core technology models, while expanding consumer reach and enhancing after-sales claims service capabilities. Going forward, Yuanbao will remain committed to its mission of "making insurance more inclusive through technology," continuing to deepen its presence in the Chinese market. Through technological innovation, it aims to strengthen the social safety net, enabling broader populations to access affordable and accessible insurance coverage, and injecting further momentum into the construction of a multi-tiered medical security system.

Group photo at the bell-ringing ceremony

The prospectus shows that Yuanbao's revenue for 2022, 2023, and 2024 was RMB 850 million, RMB 2.045 billion, and RMB 3.285 billion respectively, representing annual growth rates of 141% and 61%. During the same period, net losses attributable to parent company shareholders were RMB 435 million and RMB 333 million for 2022 and 2023, with net profit attributable to parent company shareholders reaching RMB 436 million in 2024.

According to the latest Frost & Sullivan data in the prospectus, measured by first-year premium, Yuanbao has become the second-largest distributor in China's life insurance market. Excluding dependent-type insurance distributors incubated by major internet giants, Yuanbao is the largest independent insurance distributor in China's life insurance market.

Yuanbao's rapid rise and steady growth stem fundamentally from its precise capture of opportunities in the incremental inclusive health insurance market. Against the backdrop of population aging, rising medical expenditures, and insufficient commercial health insurance coverage in lower-tier cities, Yuanbao has focused on broader markets that traditional insurance services struggle to reach. By filling coverage gaps with inclusive health insurance products, it has successfully carved out new growth points in "low-density zones." According to public information, over 70% of Yuanbao's claims users are from third-tier cities and below.

To enhance the inclusiveness of its insurance products, Yuanbao has innovated in coverage scope and payment methods, significantly lowering the barriers for users to obtain protection. For specific groups that traditional insurance services struggle to fully cover, Yuanbao has developed tailored insurance products for elderly populations, "non-standard risk" individuals, new urban residents, and flexible workers.

What most distinguishes Yuanbao from other internet insurance distributors is its unique "AI + Insurance" model: introducing AI technology into every aspect of insurance distribution and claims processing. According to the prospectus, Yuanbao has built an efficient consumer lifecycle service engine, providing each insurance consumer with customized services including personalized product customization and recommendations, purchase, policy management, claims, and after-sales service. Additionally, Yuanbao has leveraged AI technology and big data to develop an interconnected model network spanning user, media, and product dimensions. As of the end of 2024, Yuanbao had developed nearly 4,700 interconnected models in its network, including nearly 800 media models, approximately 3,200 user models, and over 700 product models. Based on this model network, the company can operate numerous scenarios ranging from initial user targeting and acquisition to sales conversion and after-sales service, continuously optimizing service pathways.

The comprehensive transformation of insurance distribution and claims services through AI technology is what fundamentally sets Yuanbao apart from offline insurance brokerage agencies and traditional online distribution platforms. This difference in model is also reflected in staffing structure. The prospectus shows that as of the end of 2024, Yuanbao had a total of 497 employees, of whom 344 were in R&D — accounting for 69.2% of the company's total workforce.

Rui Fang, Founder and CEO of Yuanbao Group, is a graduate of PBC School of Finance, Tsinghua University, with over 20 years of deep experience in fintech and internet e-commerce. He previously served as Vice President of NetEase Group and Head of the Group's Technology Department, during which he founded NetEase's E-commerce Division and successively incubated multiple businesses while serving as their CEO. As a founder with a technical background, Fang represents a unique presence who crossed over into and has deeply rooted himself in the internet insurance industry.

Analysts believe that traditional human capital-driven insurance services are currently undergoing a high-quality transformation and upgrade. Building a healthier and more sustainable insurance industry service ecosystem through technology and model innovation has become an inevitable trend, with major insurance and distribution institutions increasingly focusing on AI-based insurtech as their primary breakthrough direction.

According to Frost & Sullivan data, in 2023, the overall penetration rate of online retail services in China reached 32.3%, while the penetration rate of internet insurance sales services during the same period was only 12.3% — indicating significant room for catch-up growth. Internet insurance penetration in China is expected to reach 30.2% by 2028.