Saudi-backed health app ends China deal, focuses on US growth

Saudi-backed health app ends China deal, focuses on US growth

UK-based mobile medical consultation service Babylon Healthcare, which received a cash injection of $550 million led by Saudi Arabia's sovereign wealth fund in 2019, has pulled back from China after ending a partnership with Tencent Holdings' WeChat.

The company “couldn't come up with a commercially viable model,” said CEO Ali Parsa said, adding in an interview with Bloomberg: "The Chinese government and the Chinese partners insist on them taking most of the shares of any partnerships. I don't think the balance is right at the moment.”

The investment from new investors - such as Saudi Arabia's Public Investment Fund - values the company at more than $2 billion

A representative for Tencent confirmed that it no longer has a partnership with Babylon and declined to comment further.

Tencent backs a competing service, WeDoctor, whose business spans insurance policies, medical supplies and online-appointment booking.

Babylon's app lets users schedule a video chat with a doctor, check symptoms or book time with specialists, such as therapists.

A $550 million cash infusion led by the Public Investment Fund in 2019 valued the company at about $2 billion. It put Babylon in a position to grow when the coronavirus pandemic hit last year, offering access to doctors from the safety