Tencent, the Chinese Internet giant has invested $70 million in Ting Ting Group also known as DXY, which claims to be the biggest online healthcare service community in China. Tencent will receive a minority equity stake in Ting Ting Group.
Tencent’s investment in a healthcare company follows its competitive strategy against Alibaba Group, the e-commerce giant. Alibaba Group has also made several investments in the healthcare sector including the acquisition of a drug data company, CITIC 21CN engaging in software development for drug authentication.
According to a statement issued by the two companies, Tencent will start to offer Ting Ting Group’s services, which include access to a network of doctors, on several of its platforms, including possible integrations with the microblogging site Mobile QQ and its popular messaging platform WeChat.
In turn Ting Ting Group will use the investment to further its strategy of moving from products for doctors and pharmaceutical companies to consumer healthcare, including apps such as DXY Doctor and Family Medicine. DXY said it plans to provide medical information to consumers by focusing on three categories: mobile apps, products for WeChat and Web-based services.
The company said that given the prevalence of fake and inaccurate medical and healthcare information in China, which negatively impacts consumers, DXY is especially focused on ensuring the ‘reliability’ of the information it provides through its platform.
In addition, DXY will also use part of Tencent’s investment to create a platform for doctors and pharmaceutical companies to communicate and allow for a more legally compliant and effective way of exchanging ideas and knowledge. DXY said that it will also use big data technology to provide more accurate and higher value human resource solutions to healthcare companies and medical institutions in China.
Tencent’s president, Martin Lau, said that company has been closely following China’s healthcare industry. He added that with a rich resource of over two million professional doctors, DXY is an industry leader in the healthcare industry. According to Lau, Tencent Holdings is capable of connecting DXY’s talented pool of healthcare professionals and their medical knowledge database with tens of millions of users. This improves the ease with which their users can access healthcare information as well as professional medical help.