China: JD Health buys stake in insurtech firm

Ahead of its initial public offering later this year, JD Health has taken a stake in medical software developer Shanghai Kingstar Winning Software Science and Technology.

The healthcare unit of JD.com has taken a 7.7% stake in the company for Rmb150m (US$22.2m) alongside WuXi AppTec, according to a filing from Kingstar’s parent company Winning Health.

Founded in 2012, the insurtech company, which boasts Ant Financial as a strategic investor, monitors the country’s public medical insurance funds for fraud.

Its clients include the National Healthcare Security Administration, Alibaba, JD.com, Shanxi Provincial People’s Hospital and China Life.

Funds raised will be used to develop new products.

JD Health, the healthcare unit of JD.com, filed for its initial public offering in Hong Kong at the end of September.

The JD.com subsidiary could raise as much as US$2bn.

Banks on the deal are BofA Securities, Haitong and UBS with China Renaissance as financial advisor.