On January 22nd, Shanghai Dearer Medical Equipment Co., Ltd. (referred to as “Dearer Medical”), the OEM company for top contact lens brands such as KILALA, 4inLook, and Sweet Color, announced the completion of its Series C funding round. The funds will be used for the research and development as well as the expansion of production capacity for three categories of colored contact lenses. The current round of financing was led by Haida Investment, and existing shareholder Legend Capital made additional investments beyond their proportion, although the specific amount has not been disclosed.
Public information indicates that Dearer Medical was established in 2017 and is primarily engaged in the research, production, and sales of contact lenses. It is the largest domestic supplier of contact lenses in China, with production bases in Jilin, Xi’an, Shanghai, and South Korea. Its subsidiary, Jilin Realcon, is also one of the earliest contract manufacturing factories for colored contact lenses in China.
The company stated that it aims to achieve an annual production capacity of over 1.5 billion pieces by 2028, striving to become the largest contact lens factory in Asia. The funds from this round of financing will mainly be used for the research and development of new products and the company’s subsequent expansion projects. It is expected that after the completion of the expansion projects, there will be a significant leap in sales.
Chen Qiao, a partner at Haida Investment, stated, “Contact lenses possess a dual nature of ‘medical + beauty consumer goods’ and belong to a market segment with large size, fast growth, and high potential penetration. Dearer Medical has reached industry-leading levels in various aspects such as the research and development of silicone hydrogel materials, color design, production capacity, and quality cost. It has gradually developed into a leading enterprise in this segmented industry.”
Zhou Qian, Managing Director of Legend Capital, commented, “The market penetration rate of contact lenses and colored contact lenses in China still has significant room for improvement compared to countries like Europe, the United States, Japan, and South Korea. Consumer demands for comfort and color are constantly increasing. In addition, the shortening of the replacement cycle for contact lenses and the diversification of marketing channels in recent years have led to sustained high-speed growth in downstream demand, resulting in a long-term shortage of high-quality production capacity upstream. Junlian Capital is optimistic about the long-term development value of the company and thus continues to make additional investments in this round.”
It is worth noting that Dearer Medical signed a listing counseling agreement with Dongfang Investment Bank on June 12, 2023, officially initiating the A-share IPO. If the process goes smoothly, it may become the first publicly listed company in the contact lens industry.
