China's major hair transplant clinic Lotus raised 500 million yuan ($77 million) from private equity firm HG Capital Tuesday, a move that suggests fast development of the industry in China.

About 21 percent of Chinese men are losing their hair, making them the major customers of hair transplant, industrial statistics showed.

And since more people begin to have an open mind toward medical cosmetology amid a period of consumption upgrading, related business would have a great potential in the future, Lotus said.

"Hair transplant industry is soon to skyrocket, just like the plastic surgery industry in the past five to 10 years," said Zeng Zhiqiang, managing partner of the medical fund of HG Capital.

Founded in 2005, Lotus has opened chain clinics in about 20 cities of China, including first and second-tier ones, the company said.

Its revenue and profit have grown by more than 40 percent annually in recent years, according to Shi Guomin, managing director of the medical fund of HG Capital.

Liu Zheng, CEO of Lotus, said the investment can help to enhance the company's brand value, promote standardization and expand market share.