Arrail Group raises $90 million in D round investment

Source:Global Times Published: 2017/9/4 17:18:40

Paralympic swimmer Wang Jiachao during the competition Photo: Courtesy of 2017 Qujing Ironman 70.3

Arrail Group announced Tuesday that it has raised $90 million in its series D round from Goldman Sachs and Hill House Capital. It also officially launched its "1,000 clinics" project.

Back in 1999, when the high-end dental service market was still in its infancy, Robert Zou quit his job at an investment bank in Hong Kong and founded the first Arrail dental clinic in Beijing. At that time, rapid economic growth in China, increasing demand for oral healthcare and policies supporting and encouraging venture capitalists going into the medical market made it a golden period for dental healthcare in China. Arrail grabbed the opportunity, partnered with medical professionals, and initiated pilot collaboration projects in Beijing and Shanghai.

Thanks to the huge market potential and Arrail's positioning, the company attracted several investors. In 2010, Kleiner Perkins Caufield & Byers (KPCB) and Qiming Venture Partners became the first two venture capitalists to invest. In 2011, GL Capital Group became the third venture capitalist to invest in Arrail.

Arrail raised $20 million in the first two rounds of funding in 2014. For its C round, it got a $70 million investment led by New Horizon.

So far, Arrail is estimated to have raised more than $200 million, which is the most among all Chinese private dental care providers.

According to Xin Qin, Arrail's CFO, around 100 investment institutions showed interest in investing in Arrail after it announced its D round funding.

"Our criteria for selecting venture capitalists in not based on who would invest more or give us a higher valuation, but who shares the same concept with us," Zou said.

The funding has fueled Arrail's development and strengthened its leading position, serving more than 5 million patients in a number of cities, including Shanghai, Shenzhen in Guangdong Province, Hangzhou in Zhejiang Province and Xiamen in Fujian Province.

Arrail's success relies on its professional services, its dedication to building the brand, and in its founder's full grasp of the market. The market size of the healthcare sector is expected to reach more than $10 trillion with the implementation of China's Thirteenth Five-Year Plan for national economic and social development (2016-20).

Dental care is also facing its prime time of development. However, the rapid but chaotic growth of the market, the uneven service levels between different clinics and a serious lack of high-end dental hospitals also pose challenges.

The Arrail Group has been geared toward high-end dental services since its inception. Over the last 18 years, Arrail has helped build a high-end dental service market with clinics across the country. With more investment coming in, Arrail will further its development.


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