Jinxin Fuxing Eldercare, a subsidiary of Chinese healthcare group Chengdu Jinxin Medical Investment Management Group, has notched $80 million in its latest financing round.
The round saw the participation of Chinese PE firm Primavera Capital and healthcare-focused VC firm OrbiMed Healthcare Fund Management, the company announced recently without disclosing the investment stage.
The Chengdu-based eldercare provider offers a slew of services, including pension institutions, geriatric care, and community care services, among others, across key economic areas in the country. While the firm aims to offer 15,000 beds by the end of this year, it targets to expand its bed space to 40,000 in 2050, according to the company release.
Founded in 2007, Chengdu Jinxin Medical Investment Management Group offers maternity and psychiatry, IVF, and elderly care services. Jinxin Fertility, a spinoff of the group that engages in assisted reproductive services, raised $390 million in a global offering and IPO on the Main Board of the Hong Kong bourse in June 2019.
The average deal size in China’s healthcare service sector has shrunk by 47% from $26.2 million in Q1 2022 to $13.8 million in Q1 2023, according to DealStreetAsia’s proprietary data. Despite the decline in deal value and volume, M&A activity continues to rise.
“We will see an uptick in M&A activity. Not only because a lot of companies need cash to keep going but also because more China-based healthcare and biotech companies have become big enough to gain an appetite to do acquisitions,” Kan Chen, partner at Qiming Venture Partners, which focuses on healthcare investment, told DealStreetAsia in a separate interview.