InsurTech Startup Waterdrop Set For US IPO, Latest Valuation Hitting Tens of Billions of Dollars

(Source: ifeng)

Leading online InsurTech company Waterdrop Inc. is reported to be in full preparation for a U.S. initial public offering (IPO) in the next quarter. According to Jiemian News, this development follows a recent valuation of the company at a total worth of tens of billions of dollars, citing people familiar with the matter. 

Disclosed information shows that the Tencent-backed InsurTech startup has gone through five separate rounds of financing, garnering an overall amount of about 3.2 billion yuan.

The most recent fundraising round was the Series D financing, which brought in more than $230 million for the firm in August 2020. Together, Swiss Re Group and Tencent led the pack in D round funding, followed by other investors including IDG Capital, Lighting Global, and Gaorong Capital. 

Waterdrop’s valuation at the initial phase of angel financing in 2016 sat at about 300 million yuan. If the IPO plan and market estimate of the valuation is true, the company’s worth would have multiplied more than 200 times in the past five years. 

Rumors about Waterdrop’s IPO in the United States has started since last July when Bloomberg reported that it would complete the listing before the end of 2020 at its earliest. The IPO valuation was then expected to be between $4 billion and $6 billion. 

SEE ALSO: Waterdrop Raises $230M in Series D Round

Last October, Pandaily also reported that the company was aiming for an IPO in the first quarter of 2021, and was expected to raise approximately $500 million.

Core business segments of Waterdrop include the charity crowdfund platform Shuidichou, mutual and commercial insurance product Shuidihuzhu, as well as user community and premium trial calculation platform Shuidi Insurance Mall.