The Beijing-based company Waterdrop Inc. has raised about $200 million to bankroll its expansion in healthcare crowdfunding. The insurance tech startup, backed by Tencent Holdings Ltd., raised the money at a valuation of around $2 billion.
One of Waterdrop’s main businesses, Water Mutual, operates like a collective: people chip in small amounts of money to help others diagnosed with critical illnesses and in return receive payouts when they themselves are in need. The company said last year it takes a commission of 8%.
Waterdrop, which works with 28 insurance companies including some of China’s biggest names, has more than 250 million users, according to its website. Its backers include Boyu Capital, Meituan Dianping and IDG Capital Partners, and it raised about 1 billion yuan ($143 million) in a series C funding round in June 2019.