Tencent-Backed Waterdrop Seeks Valuation of More Than $1 Billion
- Waterdrop Mutual claims more than 70 million active members
- The company vies with Ant Financial in a new health care arena
Tencent Holdings Ltd. is gearing up to battle Jack Ma’s Ant Financial in Chinese health care. Beijing startup Waterdrop Inc., backed by the social media giant, is seeking new financing at a valuation of more than $1 billion to fend off its better-capitalized rival in the emerging field of health care crowdfunding.
Three-year-old Waterdrop is the early leader among a raft of startups upstaging a conventional insurance industry dominated by state-run behemoths. The company will spend the money on automating reimbursements and developing blockchain technology with Tencent, founder and Chief Executive Officer Shen Peng said in an interview. So far, Peng said, Waterdrop has paid out 440 million yuan ($65.3 million) to more than 3,000 of its over 70 million active users.