Beijing-based insurance tech firm Waterdrop, which is backed by Tencent Holdings, has raised around $200m to fund its expansion in healthcare crowdfunding, Bloomberg reported, citing people familiar with the matter.

The firm raised the money at a valuation of approximately $2bn, the people told the news agency, adding that the matter is private.

The four-year-old firm is also weighing an IPO, other people familiar with the matter told the news agency last month.

The proposed listing is likely to include its main businesses – Waterdrop Insurance Mall, Waterdrop Mutual, and Waterdrop Crowdfunding.

IPO is likely to help Waterdrop increase funds to ward off competition from Ant Group in the healthcare segment.

With China’s ageing population rapidly growing, the country is struggling with increasing rates of critical illnesses and Waterdrop expects to tap this segment.

For the IPO, Waterdrop is reportedly working with Goldman Sachs Group and Bank of America Corp. Although no final decision seems to have been made, the US may be among the potential listing places.

With over 250 million users, Waterdrop works with 28 insurance companies, according to its website.

It is backed by Meituan Dianping, Boyu Capital, and IDG Capital Partners. Through a series C funding round, the firm raised about $143m in June 2019.