Healthtech startup Practo said it turned adjusted EBITDA positive in the fourth quarter (Q4) of the financial year 2023-24 (FY24) and that it is “on track to maintain this positive momentum (positive adjusted EBITDA)  in the full year of FY25”.

In a statement, the startup said it witnessed a 90% decline in its adjusted EBITDA loss to INR 17 Cr in the entire FY24. 

“A sharp focus on core business resulted in a 68% CAGR, reducing adjusted negative EBITDA from INR 162 Cr to INR 17 Cr. Additionally, its contribution margins rose to 40% in FY24 from -1% in FY22, reflecting enhanced operational efficiencies,” the statement said. 

The startup also said that it clocked a 22% growth in revenue during the fiscal year under review. In absolute terms, Practo’s revenue surged to INR 242 Cr in FY24 from INR 195 Cr in the previous year.

Offering a deeper insight into its operations, the healthtech startup said that it saw a “significant growth” in Tier-2, 3 markets, with revenue zooming 50%. It also claimed to have clocked a 20% revenue jump in Tier-1 markets. 

Sharing data about its hospital management system, Insta, Practo said that the SaaS platform reported a 98% retention rate and is cash flow positive. It also said that Insta is used by more than 1,500 healthcare centres globally and accounted for a 15% market share in the United Arab Emirates (UAE). 

Going forward, the healthtech startup plans to “build” a “repeatable” engine for sales and customer growth. It also plans to further improve its products and brand investments to achieve year-on-year (YoY) double-digit growth in revenue and profit.

In its annual letter for FY24, Practo said that it plans to explore expansion into new geographic regions to grow its reach and add more users to its kitty. Practo also plans to leverage artificial intelligence (AI) to bolster its offerings going forward. 

“The company’s top priority in FY25 is to grow profitably and build innovative products that continue to improve health outcomes. With advancements in AI, Practo expects to upgrade its products to include the best AI features for both consumers and providers,” added the statement. 

Practo cofounder and CEO Shashank ND said, “… Data science offers the promise of preventing human error in diagnosis, matching patients with the right healthcare providers, reducing unnecessary costs through accurate diagnoses, and minimising wasted resources due to misdiagnosis. And Practo stands at the forefront of this data-driven healthcare revolution.”

Founded in 2008 by Abhinav Lal and Shashank, Practo is a healthtech platform that offers telemedicine and doctor appointment booking services. It also offers a SaaS platform that helps hospitals manage their systems. 

The startup has raised over $228 Mn in funding since its inception and is backed by the likes of Peak XV Partners, Matrix Partners India, Tencent, RTP Global, and Sofina. 

The turnaround comes a year after Practo fired more than 41 employees as part of its performance management and planning process in April last year. 

Since then, the startup appears to have brought its expenses under control and streamlined its operations. Meanwhile, India’s healthtech market continues to make rapid strides and is projected to be a $21 Bn space by 2025.

The post Practo Claims Adjusted EBITDA Profitability In Q4 FY24, Revenue Grows 22% In FY24 appeared first on Inc42 Media.

Bengaluru-based healthtech startup MediBuddy is raising $8.4 Mn (about INR 70 Cr) debt funding from existing debt investors, including Innoven Capital and Alteria Capital, Inc42 has learnt.

Confirming the development, the startup told Inc42 that the funds would be used for sustained growth and potential acquisitions. 

“MediBuddy is strategically raising INR 70 Cr in debt from our trusted existing debt partners. Our core business remains financially robust and does not require immediate capital, this initiative is a vital component of our comprehensive business strategy to further fuel expansion,” a MediBuddy spokesperson said in a statement. 

The spokesperson added that the debt funding will enhance its cash reserves for new strategic priorities. 

MediBuddy also claimed in the statement that it closed FY24 with a marginal loss and approached EBITDA neutrality. Now, it is focussed on acquiring companies within key healthcare sectors, including women’s health, mental health, diabetes, and chronic disease management. 

“… To enhance our cash reserves for new strategic priorities, we are undertaking this debt raise, which is non-dilutive to our equity… This infusion of capital will enable us to continue investing in innovative healthcare solutions, expanding our reach, and enhancing the quality of our services,” the statement added.

The fresh debt infusion comes almost nine months after the startup bagged $18 Mn from its existing investors, including Qadaria Capital, Lightrock, and TEAMFund, for expansion and strategic acquisitions. 

Founded in 2015 by Satish Kannan and Enbasekar Dinadayalane, MediBuddy offers doctor video consultations, end-to-end surgery care, online lab test booking and medicine ordering services. Besides this, the startup also offers insurance solutions with the help of Medi Assist.

MediBuddy claims to have a network of over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres, and 2,500 pharmacies, covering almost 96% of Indian pin codes. The startup currently claims to have a customer base of over 3 Cr. 

With the latest fundraise, the startup’s combined equity and debt funding would increase to about $218 Mn. The soonicorn startup counts the likes of Bessemer Venture Partners, India Life Sciences Fund III, Rebright Partners, JAFCO Asia, and TEAMFUND LP among its backers. 

MediBuddy directly competes against the likes of Tata-owned 1mg, Practo, and Reliance-owned Netmeds in the burgeoning Indian market. 

Telemedicine startups saw a stupendous increase in demand with the onset of the Covid-19 pandemic. On the back of this, a number of healthtech startups raised capital to expand their offerings and infrastructure.

However, these startups saw a sharp decline in their user base after the pandemic subsided, resulting in many healthtech startups shutting down. Manipal Group-backed Phable, and MojoCare were among the startups which shut operations. 

The post Exclusive: MediBuddy To Raise $8.4 Mn Debt Funding To Fuel Expansion Plans appeared first on Inc42 Media.

Healthtech unicorn Innovaccer is reportedly in talks with the US-based health and insurance major Kaiser Permanente to raise a funding in the range of $200 Mn-$250 Mn. 

The Abhinav Shashank-led startup will secure the fresh capital in a mix of primary and secondary funding, a report by ET said. 

“Kaiser has been in talks with Innovaccer for a while but this time the talks are progressing steadily between the two. It is also a customer of Innovaccer’s services,” the report cited a source as saying. 

Meanwhile, a report by TechCrunch said that this would be a downround for the startup. If the funding talks materialise, its valuation will be reduced to somewhere in the range of $2.5 Bn-$3 Bn. The startup last raised $150 Mn in its Series E round in December 2021 at a valuation of $3.2 Bn.

The startup can be valued as low as $2 Bn for the secondary transaction, the TechCrunch report said.

A query email sent to Innovaccer about the fundraise didn’t receive any response till the time of publishing this story. The article would be updated on receiving a response from the startup.

It is pertinent to note that earlier this week, Kaiser Permanente announced a partnership with Innovaccer to improve its value-based care services. 

Founded in 2014 by Shashank, Kanav Hasija and Sandeep Gupta, Innovaccer analyses healthcare data to provide actionable insights to healthcare providers, hospitals, insurance companies and other organisations and businesses. 

The startup, which has headquarters in Bengaluru and San Francisco, has raised a total funding of about $390 Mn till date. It is backed by the likes of Tiger Global Management, B Capital Group, Microsoft’s M12 fund, and OMERS Growth Equity. 

Earlier this year, Innovaccer acquired digital marketing and customer relationship management startup Cured.

The latest development comes at a time when the Indian startup ecosystem has been seeing a number of secondary transactions. Most recently, IPO-bound Capillary Technologies secured $95 Mn in secondary transactions as part of its Series D funding round of $140 Mn.

Besides, early-stage investor Chiratae Ventures is reported to have sold some of its stake in Lenskart, Bizongo, Rentomojo, among others, to private equity firm Madison India Capital for $70 Mn.

The post Healthtech Unicorn Innovaccer In Talks To Raise $250 Mn From Kaiser Permanente appeared first on Inc42 Media.

Barely a month after the Competition Commission of India (CCI) greenlit PharmEasy’s INR 3,500 Cr rights issue, the digital pharmacy has raised INR 1,804 Cr ($216.2 Mn) in a down round led by the family office of Manipal Group chairman Ranjan Pai.

As per regulatory filings accessed by Inc42, PharmEasy’s parent API Holdings passed special resolutions to allot 18.63 Cr (18,63,74,897 to be precise) cumulative convertible preference shares B (CCPS B) at an issue price of INR 96.8 each. This translates into a cumulative total of INR 1,804 Cr.

The development was first reported by Entrackr.

The funds were raised as part of the ongoing rights issue at a 90% valuation cut compared to the startup’s peak valuation of $5.6 Bn in October 2021. 

While the MEMG Family Office pumped in INR 800 Cr, Prosus invested INR 221 Cr. On similar lines, 360 One (formerly IIFL Ventures) infused INR 200 Cr through multiple funds, while Temasek invested INR 183 Cr.

Canadian pension fund CDPQ also invested INR 95 Cr in the epharmacy major. 

Meanwhile, WSSS Investments, Goldman Sachs, and Evolution Debt Capital cumulatively invested INR 304 Cr.

The company’s board passed the proposal to allot the CCPS in two different board meetings held on April 9 and April 11. As per the filings, the startup plans to convert the CCPS into equity shares in the ratio of 1:20.

Meanwhile, it remains to be seen when the remaining INR 1,700 Cr of the INR 3,500 Cr trickles in for PharmEasy. 

The fundraise comes just a month after the CCI approved the proposal of MEMG family office and 360 One to invest in API Holdings. Earlier in January, the competition watchdog also cleared the investment proposals of Goldman Sachs India, MacRitchie Investments and Evolution X, CDPQ, among others. 

The digital pharmacy undertook the rights issue to clear a significant portion of its outstanding debt to Goldman Sachs. The startup had violated its loan covenant conditions with Goldman Sachs barely a year after raising the debt. 

As per the terms of the loan, the Mumbai-based startup was supposed to raise an equity round of about INR 1,000 Cr but the fundraise failed to materialise amid mounting losses, funding winter, and macroeconomic pressures.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy sells medicines online and also offers diagnostic tests to its customers through its other brands.

The company has been in choppy waters for some time now for a range of reasons including valuation markdown, funding woes, and mass layoffs. The startup was also the biggest underperformer in the Indian portfolio of investment giant Prosus in H1 FY24 with an internal rate of return (IRR) of -41%.

However, PharmEasy has been on the mend recently on the back of a restructuring exercise. It managed to cut down its loss to INR 2,289 Cr (excluding impairment loss) in FY23 from INR 2,731.7 Cr in the previous fiscal year. Operating revenue rose 16% year-on-year to INR 6,644 Cr in FY23.

The post PharmEasy Rights Issue: Epharmacy Raises INR 1,804 Cr At A 90% Valuation Cut appeared first on Inc42 Media.

Healthtech startup Portea Medical has raised $19.87 Mn (INR 165.8 Cr) through a rights issue, a year after it received an approval from the Securities and Exchange Board of India (SEBI) for initial public offering (IPO).

The board at Portea received a special resolution to issue 69.2 Mn Series D1 compulsory convertible preference shares (CCPS) at an issue price of INR 23.96 apiece, according to the company’s regulatory filing with the Registrar of Companies (ROC). 

The development was first reported by Entrackr.

Having filed its Draft Red Herring Prospectus (DRHP) in July 2022, the startup bids to raise INR 800 Cr ($95.9 Mn) via its IPO. The IPO comprises a fresh issue of equity shares worth INR 200 Cr and an offer for sale (OFS) of up to 56.25 Mn shares.

It is pertinent to note that the startup introduced an addendum to its DRHP on March 10, 2023, before receiving a nod from SEBI in April 2023. It plans to list on the BSE and NSE post the IPO

Founded in 2013 by Krishnan Ganesh and Meena Ganesh, Portea Medical offers healthcare services which include maternal care, physiotherapy, nursing, lab tests, counselling and critical care, among others. The Bengaluru based startup has raised over $75.1 Mn since inception. 

In its last disclosed financial results, the startup reported an operating revenue of INR 145 Cr in the financial year 2022-23 (FY23), a 3.3% decline from INR 150 Cr in the previous fiscal year, as per data reported by Entrackr. In the FY, Portea’s expenses also grew 32.5% from INR 40 Cr in FY22 to INR 53 Cr in FY23. 

This development comes at a time when the bourses are heating up for new age tech stocks as multiple startups are looking to make a go at the public market in FY24. Last week, Swiggy filed its DRHP with the SEBI, albeit confidentially. The foodtech major is looking to raise $1.2 Bn with its IPO. 

Further, Peak XV-backed coworking space provider Awfis and B2B travel portal Travel Boutique Online or TBO Tek, also received a go-ahead from the exchanges for their respective IPOs, last week. 

Other awaited public market debuts include ixigo, MobiKwik, Unicommerce, and Ola Electric. 

The post IPO-Bound Portea Medical Secures $20 Mn Via Rights Issue appeared first on Inc42 Media.

Bengaluru-based healthtech startup Healthify (formerly HealthifyMe) laid off around 150 employees, or about 27% of its workforce, in a restructuring exercise earlier this week, sources told Inc42.

The layoffs mostly impacted employees from sales and product teams, the sources added.

Healthify cofounder and CEO Tushar Vashist confirmed the layoffs with Inc42, saying the restructuring exercise was undertaken as the startup is looking to make its India business EBITDA profitable and expand its offerings in the US market.

“In the next three-four months, our India business will turn EBITDA profitable and this restructuring was an unfortunate but an important step in line with achieving this. We also have to make sure we have enough resource allocation for the global expansion,” Vashisht said. 

Meanwhile, Healthify told Inc42 in a statement, “..We deeply understand the impact of these changes on our affected employees and will provide them robust support during this transition, including comprehensive severance packages, extended insurance coverage, and job placement assistance.” 

The impacted employees have been offered 2-months salary as severance pay, extended insurance coverage, accelerated stock vesting period in some cases, and leave cash encashment, the sources mentioned above said. 

The layoffs came almost a year after Healthify raised $30 Mn in its pre-Series D funding round led by LeapFrog Investments and Khosla Ventures. The round also saw participation from new investors FinnFund, a Finnish development financier, and Van Lanschot Kempen, a Dutch investment firm.

In December 2021, the startup had laid off around 150 employees from various teams, including SME (subject matter expert), quality analytics, product and marketing. 

Founded in 2012, Healthify’s health and fitness app leverages AI to deliver measurable results on eating habits, fitness and weight by tracking lifestyle and providing access to coaches, among other benefits.

Healthify has raised around $130 Mn in funding till date and counts the likes of Sistema Asia Capital, Athera Venture Partners, and Innoven Capital among its backers. 

The startup competes with the likes of UltraHuman, Cult.fit, and one8 Fitness. 

Healthify’s net loss declined to INR 142 Cr in FY23 from INR 157 Cr in the previous fiscal year, while revenue from operations surged 23% to INR 228.76 Cr from INR 185.25 Cr in FY22.

The post Exclusive: Healthify Fires 150 Employees In A Restructuring Exercise appeared first on Inc42 Media.

Bengaluru-based healthtech SaaS startup HealthPlix fired 100 employees, or 25% of its workforce, as part of a restructuring exercise and annual performance review. 

A spokesperson of the startup confirmed the development with Inc42 and said that around 60 employees were let go because of poor performance, while the remaining were impacted due to role redundancies.

“Around 55 to 60 employees were let go because their performance was below par and we had to let them go as part of the annual appraisal cycle,” the spokesperson said. 

Sources told Inc42 that a majority of the employees who were fired due to performance issues were from the sales department. 

While the impacted employees were not put on a performance improvement plan (PIP), they were given feedback multiple times to work on their shortcomings, the spokesperson added.

Meanwhile, sales, product, engineer, and revenue teams were impacted by the restructuring exercise, which resulted in 10% reduction in HealthPlix’s workforce.

“The restructuring exercise was in line with the company’s next growth arc. HealthPlix intends to go global and is planning to make enterprise solutions for its foreign clients,” the spokesperson added. 

Inc42 has also learnt that HealthPlix has now started charging customers for its electronic medical record (EMR) software, which it used to offer free of cost earlier.

The sources cited above also said that the number of employees impacted by the restructuring exercise could be much higher than that cited by the startup.

All the 100 employees will receive severance pay based on their employee contracts. Most of them will receive two months of severance pay. 

Founded in 2014 by Sandeep Gudibanda, Raghuraj Sunder Raju, and Prasad Basavaraj, HealthPlix allows doctors to create a full medical profile of their patients with the help of its ERM software, helping them during follow-on consultations. 

The startup last raised $22 Mn in a mix of equity and debt in its Series C funding round last year amid the funding winter. The round was led by Avataar Venture Partners and SIG Venture Capital. 

Back then, the startup said it would use the capital to grow its base of doctors and invest more in sales, product and engineering teams. 

HealthPlix currently works with around 14,000 doctors. 

The startup has raised $40 Mn in funding till date and counts Lightspeed Venture Partners, JSW Ventures, Kalaari Capital, and Chiratae Ventures among its backers. 

It posted a net loss of INR 41.9 Cr in the financial year 2022-23 (FY23), 17% higher than INR 35.8 Cr in the previous fiscal year. However, its revenue more than doubled to INR 29.1 Cr from INR 13.6 Cr in FY22. 

At INR 53.9 Cr, employee benefit expenditure was the startup’s biggest expense and accounted for 75% of its total expense of INR 71.5 Cr in FY23. Employee costs rose 65% during the year under review from INR 32.6 Cr in FY22. 

HealthPlix competes against startups like Practo. It is pertinent to note that the startups in the EMR domain have been struggling for some time. While Kalaari Capital-backed Phablecare shut its operations last year, PharmEasy-acquired Docon undertook a massive restructuring exercise in 2022. 

The post Exclusive: HealthPlix Axes 25% Workforce Due To Performance Issues, Role Redundancies appeared first on Inc42 Media.

In a country like India, where affordable, universal healthcare run by government agencies remains a work in progress, most people rely on private healthcare facilities. In fact, more than 70% of the country’s hospitals are privately owned and nearly 85% are in the unorganised sector. 

As patients prefer visiting corporate chains or quality healthcare providers in metros during health crises, large payers are steadily increasing their market share. Consequently, small and midsized hospitals in non-metro locations are grappling with a decline in patient footfall. On the other hand, those who cannot afford expensive private care are left to bear the brunt of healthcare disparities. For context, a report by the National Insurance Academy suggested that about 30% of India’s population (around 40 Cr individuals) lack health insurance. 

No doubt there are national and state-level health protection schemes for low-income families for secondary and tertiary care. But even a pan-India health assurance project like Ayushman Bharat with its HWCs (health and wellness centres) and flagship PM-JAY scheme (Pradhan Mantri Jan Arogya Yojana enables an annual spend of INR 5 Lakh per family) covered a little over 50% of its target beneficiaries as of December 2023.

However, a silver lining is there in the form of asset-light models. A new crop of healthtech startups such as Pristyn Care have come up to address structural and resource shortages. These innovative digital platforms connect patients with all available medical facilities in their own cities and nearby areas/regions to ensure maximum cost-effectiveness for patients and optimum occupancy rates at existing units. 

It is a win-win for all. People do not have to travel far for treatment at corporate hospitals at six to eight times the usual cost. Also, smaller medical units can earn bigger revenues due to a significant rise in patient footfall. Besides, the latter can keep their capex under control and still improve care quality by sharing high-end portable devices used by many speciality hospitals. Additionally, there will be headroom to operationalise beds at existing facilities and introduce more paramedics and other trained healthcare professionals to the ecosystem.                      

“I have always been vocal about the underutilisation of small and midsized hospitals and nursing homes,” said Dr Vaibhav Kapoor, cofounder of the unicorn healthtech startup Pristyn Care. 

“Covid-19 was a real eye-opener, underscoring what happens when we lack an agile healthcare infrastructure. The shortcomings became evident when every large hospital was full. However, in normal times, most small/midsized hospitals struggle daily due to low patient volume.”

Set up in 2018 by Dr Kapoor, Dr Garima Sawhney and Harsimarbir Singh, Pristyn Care had the foresight to recognise that improving capacity utilisation across could be a game-changer in terms of earnings and patient care.

The elective surgery service provider (non-emergency medical procedures planned ahead) provides patient care through a network of 350 hospitals and 100+ clinics. It is present in more than 30 cities including Delhi NCR, Mumbai, Bengaluru, Kochi, Chandigarh and  Ludhiana and ensures resource optimisation, resulting in affordable patient care.  

In a one-on-one interaction with Inc42, Kapoor explained how the startup is expanding its presence beyond metros to empower small and midsized hospitals by increasing patient footfall and revenue. Here are the edited excerpts:  

Inc42: What are the major challenges small hospitals, nursing homes and clinics in Tier II and III cities face nowadays?

Dr Vaibhav Kapoor: For context, it is worth noting that many doctors want to set up their medical practices after cornering professional success. So, it is common for groups of doctors to come together and run hospitals with 50-100 beds, which are much smaller than the large, branded hospital chains.

Now, these small, independent hospitals face numerous challenges. For instance, their capacity for high-end/advanced equipment is limited due to the costs involved, often ranging from lakhs to crores.

Another critical issue is adherence to protocols. Small and midsized hospitals often require a set curriculum to ensure that nurses are well-versed in duties for specific wards, operating theatres and patient admission procedures. In the absence of this procedure, there may be a lack of standardisation in implementing these protocols.

Finally, and this is particularly relevant for Tier II and III cities, these hospitals struggle to attract super-specialist doctors due to the limited availability of high-quality equipment. This, in turn, creates a lack of trust among patients and they hesitate to visit small hospitals.     

Inc42: How can small healthcare facilities in Tier II and III cities best address low patient footfall and occupancy rates?

Dr Vaibhav Kapoor: We have many doctors working with us, and we can request that they visit small hospitals and nursing homes to provide surgical care. When patients see a doctor who regularly operates at a large corporate hospital and acts as a visiting consultant at a small facility, their confidence is boosted.     

We also understand the challenges these hospitals face when investing in high-end equipment. Pristyn Care addresses this by purchasing the equipment. For instance, kidney stone removal can be done using traditional open surgery or a Laser procedure [Holmium laser]. However, the machine costs around INR 25 to 30 Lakhs. Similarly, Laser treatment for proctology is expensive, amounting to INR 1 to 1.5 Lakhs.

Fortunately, these machines are portable and can be shared between hospitals on demand. By operating in multiple hospitals in a region, we can optimise the use of these advanced instruments. Access to them further builds patient trust in small hospitals. 

Inc42: India’s Tier II and III cities also face a shortage of trained healthcare professionals. How does Pristyn Care deal with it through its training programmes? Has that initiative improved care quality?

Dr Vaibhav Kapoor: Pristyn Care’s quality control (QC) team is based in Gurugram and travels to our 350 partner hospitals and 100+ clinics across India to train healthcare professionals, including nurses and paramedics. These programmes focus on standardising protocols to ensure optimal patient care.

For example, the QC team updates staff on areas like OT equipment sterilisation and patient safety measures, such as fall prevention and allergy management protocols. We have trained more than 9K staff members across our partner facilities. Our training programmes include on-site sessions and virtual sessions for constant reference by hospital staff.

Essentially, we help hospitals in Tier II and III regions gain patient trust by standardising processes and providing staff training.

Inc42: How does your technology infrastructure ensure scalability and patient privacy as you expand your reach?

Dr Vaibhav Kapoor: Well, patient safety is paramount. During my decade-long career as a surgeon, I have seen numerous medical errors stemming from patients and pharmacists misinterpreting doctors’ handwriting, leading to wrong medications. 

We have proactively addressed this by introducing electronic medical records (EMRs) with the help of an AI-ML platform. EMR helps surgeons access patient data, review medical history and monitor how their patients are doing on all critical parameters. Within our distributed network across 30+ cities, this centralised system has significantly reduced patient-related errors. Typed prescriptions also mitigate misinterpretation risks.

We have also partnered with many insurance companies to offer medical insurance through our platform. Additionally, we have developed three apps to enable a seamless flow of information. These include a hospital app, a patient app and an insurance app. They ensure patient privacy and eliminate the need for information sharing via WhatsApp or over the phone. This streamlined process further enables speedy patient admission.

Inc42: With major healthcare chains foraying into Tier II and III cities, will small hospitals face unique challenges? How can they navigate those?

Dr Vaibhav Kapoor: Large healthcare chains may not pose a big threat to small players because the former typically focusses on tertiary and quaternary care [advanced levels of specialised care]. The capex associated with advanced equipment for such procedures is very high, and hospitals can only profit from complex surgeries like liver/kidney transplants and cardiac or brain surgery.

In contrast, small hospitals can excel in secondary care surgeries, which are typically two- to three-day procedures and require specific expertise. This focus on specialisation is precisely our strategy. For instance, patients may prefer a small maternity clinic to a large hospital where gynaecology is just one speciality. 

Therefore, we envision our partner hospitals to become centres of excellence for secondary care surgeries, carving a valuable niche in the healthcare landscape. 

Inc42: Can you elaborate on how Pristyn Care’s support system goes beyond patient footfall and delve deeper into how it empowers doctors to tackle day-to-day operational challenges. 

Dr Vaibhav Kapoor: I became a doctor because I felt committed to this profession. But the healthcare landscape has changed since then. Surgical expertise is just one aspect. Doctors now face many challenges, including setting up clinics, managing operations, building a digital presence and dealing with medico-legal risks.

Doctors gain confidence when they work with Pristyn Care, knowing that we handle patient footfall and ground operations. This comprehensive support system is valuable and has attracted nearly 600 doctors to our network – all through word of mouth, with minimal marketing expenditure on our part.

Inc42: Secondary-level critical care may involve longer hospital stays than elective surgeries. Do you think an asset-light model like Pristyn Care is fully equipped to cover those complex medical procedures?

Dr Vaibhav Kapoor: Absolutely! We started with elective surgeries, but now we are doing knee replacements and vascular surgeries – both classified as tertiary care. Our asset-light model can be applied across diverse medical needs if we can effectively deal with low patient footfall. 

Pristyn Care plays a critical role in generating revenue for its partner hospitals. For instance, we generate 60-70% of the income for around 30% of the hospitals. Overall, we help drive around 50% of the revenue for most midsized hospitals in our network. It enables them to make the most of their existing resources without hiring additional staff.

The post We Empower Tier II, III Hospitals With Resource Optimisation & Standardisation Across 30+ Cities: Pristyn Care’s Dr Vaibhav Kapoor appeared first on Inc42 Media.

In a major reshuffle at Cult.fit, cofounder and former CEO Mukesh Bansal has been appointed as the new executive chairman of the fitness unicorn. Meanwhile, head of fitness services Naresh Krishnaswamy has been elevated as the new chief executive officer (CEO) of the company. 

A spokesperson of the startup confirmed the development with Inc42 without offering any comment. 

As per Economic Times, Krishnaswamy was made the CEO internally in October last year but the move was not formally announced. 

“It’s been in the works for some time and (the elevation of Krishnaswamy) was announced internally a few months back. Mukesh gets involved for broad strategic matters and attends board meetings,” a person aware of the development told the publication.

The new CEO is said to have been running the show and managing all key operations at the fitness company since Bansal moved to Tata Digital as its president in mid-2021.

Bansal left the digital arm of the Tata Group early last year and has since been focussing on his new venture in the fashion space with Zomato cofounder Mohit Gupta. The duo have been in talks with several investors to raise capital for the yet-to-be-launched startup. However, Bansal is still involved with Cult.fit on strategic matters.

Founded in 2016 by Myntra cofounder Bansal and Ankit Nagori, Cult.fit offers a range of fitness services, including workouts at Cult.fit’s physical centres and other allied services at its partner gyms and fitness centres across the country. 

The startup has raised more than $670 Mn in funding till date and is backed by the likes of Zomato, Temasek, and Kalaari Capital.

Notably, the reshuffle comes just two months after the fitness unicorn raised INR 84.5 Cr in its Series F funding round led by existing backer Valecha Investments. The round also saw participation from Extreme Brands, L&K Wellness Services, among others.

Krishnaswamy’s tenure at the helm of the startup so far has seen Cult.fit undertake a major restructuring exercise to curb losses and streamline operations. As part of this, the startup fired nearly 120 employees earlier this year. The mass layoff exercise impacted employees across its sub-brands such as Sugar.fit, Carefit, and Cult.fit.

Cult.fit’s operating revenue reportedly more than tripled to INR 694 Cr in the financial year 2022-23 (FY23) from INR 216 Cr in FY22. Meanwhile, the unicorn narrowed its loss nearly 20% year-on-year to INR 551 Cr in the year ended March 2023. 

The post Reshuffle At Cult.fit: Naresh Krishnaswamy Elevated As CEO, Mukesh Bansal Becomes Chairman appeared first on Inc42 Media.

India’s healthcare grapples with inherent challenges, particularly for small-to-midsized hospitals situated in non metro areas and in Tier 2 and 3 cities. Despite these areas catering to approximately 86% of medical visits in India, patients often embark on arduous journeys to larger branded hospital chains due to a lack of trust in local or small/medium facilities and the perceived necessity of advanced diagnostic and treatment capabilities.

Many times, patients struggle to cope with hefty bills and out-of-pocket expenses at these large facilities even if they have insurance or PMJAY (the coverage may not be sufficient for them in many cases). In fact, two-third of patients seek treatment in the costlier private sector, observed a 2021 NITI Aayog report. 

“The majority of healthcare facilities in India (almost 90%) are small and medium unbranded establishments. The middle class is only aware of large branded facilities,” said Senu Sam, the cofounder of healthtech startup Mykare Health.  

He further added that many small and medium facilities have experienced doctors, equipment and trained resources but struggle to build awareness and trust among patients. 

Patients often have a few fundamental questions: Who is my doctor, and what is their expertise? How good is the facility? Who will guide me through the treatment process? And what are the costs involved? 

A new crop of asset-light aggregators like Mykare Health is helping patients find these answers, while helping smaller hospitals with a steady patient footfall. They aim to build extensive provider networks and offer value-added services to make patient care more affordable and accessible. Essentially, these new-age healthcare startups are partnering with medical facilities (hospitals, clinics, labs/diagnostic centres and more) and networks of surgeons to bring quality and scale to the value chain for a patient-centric approach.

When Sam and other two founders built Mykare Health to help people looking for treatment, they had two clear goals in mind. First, patients, especially those from the middle income class, should have access and be aware of the experience and expertise of their doctors. Second, helping the hospital owners to unlock the chicken and egg scenario (patients want experienced doctors and doctors need footfalls). 

However, the interconnected nature of these issues involving healthcare infra, cost and staffing critical components for handling short stay surgeries (or elective surgeries that are planned non-emergency procedures) requires a deeper plug-in rather than a simple fix. So, the healthcare startup zeroed in on a two-pronged strategy to make it a win-win for healthcare providers and consumers. 

Although small and midsized hospitals typically experience lower patient traffic and occupancy rates, they have been urged to optimise their offerings to attract more patients and drive revenue majorly due to the awareness. On the other hand, Mykare Health connects patients with its network hospitals that offer affordable procedures compared to branded large chains.    

This approach has paid rich dividends by addressing the consumer pain points for elective surgery (quick access and affordable quality care) and driving network hospitals’ revenues. By February 2024, Mykare Health partnered with 170+ hospitals in 12 Indian cities and claimed a 20% monthly rise in surgical enquiries, reaching 5K+ since its inception. 

The business is now running at operational positive (CM2), indicating a firm stride towards profitability. For context, CM2 covers everything apart from admin cost.  

Mykare’s USP: Balancing Demand-Supply, Revving Up Revenue Via Capacity Utilisation

While people struggle to schedule elective procedures in big hospitals across big cities, Mykare Health has strategically leveraged the existing healthcare infrastructure by partnering with underutilised and budget-friendly small and medium private hospitals.

According to a report by BCG and B Capital titled A Digital Pill For Revolutionizing Healthcare, smaller hospitals find it difficult to cope with low footfall, witnessing 25-30% occupancy rates compared to large hospital chains (60-70%) in the top 60 Indian cities.

In contrast, public healthcare units are mostly understaffed, under-equipped and flooded with more patients than they can handle. According to KPMG, as of May 2021, India had 1.4 beds per 1,000 people and 0.5 beds in public hospitals, falling significantly short of WHO’s recommended 2.9 beds per 1,000. Therefore, it is imperative to utilise the existing infrastructure in the private healthcare space and bring cost-effective medical services to the masses via asset-light aggregators.

“It would be an oversimplification if we attribute the current scenario to mere underutilisation of small and midsized hospitals,” said Sam. “The crux of the matter lies in the limited recognition of these hospitals by potential patients. Without a consistent patient inflow, these hospitals face financial constraints that hinder their ability to invest in and optimise the necessary infrastructure,” he pointed out. 

It reminds us of the proverbial chicken-and-egg situation, as the lack of footfall hinders timely upgrades, and talented doctors hesitate to enrol in facilities minus the modern-day adaptations required for a high volume.

Mykare Health aims to break this cycle by providing a comprehensive suite of services, starting with surgeries, from assessing surgery needs to finding providers, managing appointments, helping settle insurance claims and offering follow-up consultations post-surgery. This end-to-end and hassle free approach streamlines the entire process, cutting down on lengthy paperwork and the endless running around to reach the right people for medical and insurance requirements. Plus, there’s the cherry on the cake – an average cost-benefit of 30% or more and zero hidden costs.

Smaller hospitals also gain awareness about their experienced doctors and a steady stream of patients. According to Sam, around 40% of Mykare’s partner hospitals have seen a significant rise in patient footfall, caseload and revenues. Moreover, when hospitals have steady revenue streams, state-of-the-art healthcare infrastructure can be easily rolled in, and elective surgery in these  locations would be as advanced as in speciality centres.

How Healthcare Aggregators Are Transforming Elective Surgery

Forget Covid-related delays; a survey by healthtech startup Navia Life Care reveals a more critical concern. Around 60% of elective procedures in India remain on hold due to financial issues.

Consequently, Mykare Health and its ilk are trying to fix the healthcare financing part, keep costs transparent and ensure that the service offerings are as inclusive as possible to help people access secondary or even tertiary care (if the occasion calls for it) in the face of skyrocketing healthcare costs and not-so-sturdy public finances.    

Sam says that with Mykare Health, patients pay almost 30% less compared to the traditional route.

For instance, Mykare Health focusses on coordinating and overseeing elective procedures in several areas such as laparoscopy procedures (for hernia and gallstone), proctology (piles and fissures), gynaecology (hysterectomy, vaginal cyst), urology (kidney stones & prostate), vascular (varicose veins), ophthalmology (cataract & LASIK) and cosmetic surgery.  

Sam related a case to illustrate his startup’s impact on people’s lives. A delivery agent suffering from piles faced an unexpected hurdle as his health insurer refused to cover the treatment due to a draconian clause. The claim was declined as the agent was not working on the day when he fell ill. 

The patient sought Mykare’s help and the startup intervened on his behalf. All ‘issues’ were quickly ironed out with the patient undergoing the surgery and his medical bills getting settled. The year was 2023, but such irregularities within the healthcare ecosystem continue to raise their ugly heads, leaving the insured in the lurch.   

“This will tell you how our platform acts as a catalyst in navigating and resolving complexities within the healthcare system, ultimately benefiting the patients we serve,” said Sam.

In the next six to nine months, the startup aims to tie up with more hospitals and help partner hospitals grow their patient base. 

What The Future Holds

According to a report by healthcare-focussed market research firm Insights 10, the digital healthcare market in India is projected to soar from $3.8 Bn in 2022 to $18.3 Bn by 2030, growing at a CAGR of 21.6%. 

These forecasts highlight a clear opportunity for platforms like Mykare Health, which go beyond traditional digital healthcare services like online consultations. Instead, it focuses on delivering a comprehensive patient experience tailored for elective surgery to start with. As discussed, this strategic approach benefits patients and addresses a significant challenge within the industry: The underutilisation of small and medium hospital capacities.

“In the next two to three years, the elective surgery landscape is poised for a convergence of digital advancements, collaborative healthcare networks, technological empowerment for hospitals and diversification of healthcare offerings,” observed Sam.

For instance, after a significant demand utilising the beds and equipment, these facilities need technology tools to manage certain processes.

However, there’s more to come. Sam envisions this asset-light healthcare service model extending beyond the elective surgery landscape. “We have started with elective surgery, however our goal is to increase footfalls. We are focusing on demand and help underutilised facilities in areas like utilising radiology equipment and resources,” he said.  

Saying that, the founders of Mykare Health want to build the largest asset light affordable and trusted hospital chain.  

In recent years, digital healthcare startups have proven how to bridge the gap between affordability and accessibility. The BCG report further suggests that healthcare providers must explore new models such as remote health management, eICU and care coordination across homes and hospitals through strategic partnerships with innovative healthtech platforms. This innovative shift will be crucial for improving the healthcare system in India, and digital-age players like Mykare Health are likely to play a pivotal role in bringing about that change.

The post How Mykare Health Is Boosting Patient Footfall & Revenue For 170+ Small & Midsized Hospitals Across India appeared first on Inc42 Media.

At Inc42, the month of March has been about understanding the impact of GenAI on different sectors and industries and how Indian businesses are adopting this emerging technology to make a dent in their respective areas of operations.

In line with our perusal, we decided to delve deeper into how the GenAI adoption is set to transform the face of the entire healthcare industry — be it robotic surgery or day-to-day patient care. 

What we learnt is that while the Indian healthcare industry is strongly positioned to harness the true potential of GenAI, there remains a dire need to get fundamentals like data accuracy, data security, and ethical implementation in place.

This is crucial at a time when several industry players, including Apollo Hospitals, Max Healthcare and health-focussed startups Healthify, are either leveraging GenAI to raise the healthcare bar in the country or exploring avenues for the same. 

Notably, players like Pfizer, Novartis, Merck, and others are already leveraging GenAI for drug discovery in the global pharmaceutical space.

Today, while the GenAI adoption in the Indian healthcare industry is largely limited to chatbots, Indian startups are increasingly upping the ante to stay abreast of their global peers.

For instance, Peak XV-backed Qure.ai and AngelList India-backed Boltzmann are using GenAI to speed up AI-based research and analysis in the Indian and global markets.

Apart from this, Indian startups are focussed on implementing GenAI in the areas of patient communication, clinical documentation, continuous and remote monitoring, medical imaging interpretation, and enhanced analytics.

Prashant Singh, director and chief information officer at Max Healthcare, said, “Over the next three to five years the Indian healthcare industry’s embrace of GenAI promises transformative changes. From personalised treatment plans to accelerated drug discovery, AI algorithms are being used to optimise patient care and diagnostic accuracy.” 

According to Singh, the emerging tech is also being used to improve rural healthcare access through telemedicine and remote monitoring, streamline administrative tasks, enhance efficiency and reduce costs to make quality healthcare affordable to all.

Patient Support Gets The GenAI Overhaul

As mentioned above, GenAI adoption in India has somewhat become synonymous with building chatbots. Consequently, several GenAI startups specialising in conversational AI are increasingly finding a major use case in the healthcare industry, too.

This has not only enabled a seamless patient-healthcare interface but also streamlined the overall process of patient support.

Rustom Lawyer, cofounder and CEO of Augnito, a healthcare-focussed voice AI solution platform, said that the company has now built a platform called Ambient, which, using its proprietary multi-lingual Medical Speech Recognition and GenAI technology, helps healthcare providers interact with patients without the burden of manual data capture and input.

Lawyer explained that healthcare providers can switch on the Ambient technology app on their smart devices and carry out regular consultations. 

The AI transcribes the entire conversation in real-time, with absolute accuracy and generates a structured Subjective, Objective, Assessment and Plan (SOAP), which includes data for each field that a doctor would otherwise have to manually fill such as chief complaints, medical history, diagnoses, and recommended plan of care, prescriptions, among others.

“It essentially creates structured data from a natural, free-flowing conversation. This data then gets pushed into the EMR system with a simple voice command,” he said.

It is evident that with GenAI coming into the picture, the efficiency of traditional tools has increased manifold, and hospitals are steadily looking to embrace that change.

Max Healthcare’s Singh, too, said that the hospital chain could deploy GenAI-powered virtual assistants to interact with patients, answer medical queries, and provide personalised health recommendations. 

“These assistants can assist patients in scheduling appointments, refilling prescriptions post doctor’s approval and accessing healthcare services, improving patient engagement and satisfaction,” he added.

However, the adoption of GenAI with existing concerns about hallucinations is likely to encounter significant hurdles.

Here’s a look into major headwinds that the Indian healthcare industry may face with the advent of GenAI 

GenAI Can Speed Up Disease Diagnosis 

GenAI holds significant promise in enhancing the diagnosis process in healthcare. Experts believe that its ability to analyse patient data and generate personalised treatment plans, as well as assist in interpreting medical images like MRI scans, X-rays, and CT scans, can revolutionise disease diagnosis.

Google, for instance, is actively researching how a fine-tuned version of its Gemini model tailored for the medical domain can enhance advanced reasoning. Its MedLM, a family of foundation models for healthcare, is already in experimental phases, aiding medical professionals in classifying chest X-rays for various use cases.

Max Healthcare’s Singh said that the hospital chain has already started using AI-powered tools for its radiology and imaging department across different Max units. 

“These tools empower the users to have early diagnosis and patients to have a better prognosis of diseases,” he said. 

Singh added that Max is exploring different organisations that can translate patient data into proactive diagnosis, provide tailored treatment plans, and analyse patient segments.

As per Singh, Max Healthcare is also looking to leverage GenAI to analyse and interpret genomic data for precision medicine applications. 

“These (GenAI) models can identify genetic variants associated with diseases, predict disease risk and recommend targeted therapies based on individual genetic profiles,” he said, adding that such a personalised approach to healthcare also improves treatment efficacy.

Besides, it is pertinent to note that fitness and healthtech platforms increasingly leverage GenAI capabilities for tracking fitness goals, improving remote diagnosis of diseases, and enabling more effective communication with users.

For instance, Bengaluru-based Healthify has adopted GenAI technology to enhance its chatbot ‘Ria’ and build ‘Snap’ – a photo-to-food recognition system. It enables users to easily find calorie counts of their food by clicking its picture.

The startup claims that GenAI usage has resulted in a 50% increase in food tracking, deeper user engagement, and 18% higher client-coach interaction.

What Lies Ahead?

With GenAI in its nascent stage, experts believe that human intervention will continue to remain key in the Indian healthcare space. 

This is because it has become all the more important to address ethical concerns, ensure data privacy and security and validate the accuracy and reliability of AI-driven solutions before the widespread adoption of this technology.

Both Singh and Lawyer are of the opinion that even though GenAI promises a future of more efficient, accessible, and personalised healthcare in India, addressing data privacy, bias, and infrastructure limitations will be crucial in ensuring its equitable and ethical implementation. 

They added that there are also risks of Intellectual Property (IP) thefts in this space, therefore companies will have to be one step ahead in the GenAI adoption game. 

Meanwhile, Namit Chugh, principal at W Health Ventures, noted that so far, administrative use cases have found more adoption in healthcare.

Despite this, Chugh is extremely bullish on the growth prospect of companies building small language models (SLMs) working on particular diseases such as obesity or cancer. 

He, however, added that going ahead, it would be extremely crucial for startups building healthcare-focussed conversational AI platforms to find the right monetisation and go-to-market strategies. 

Though implementation challenges remain, GenAI-led developments are all set to take the Indian healthcare industry by storm. According to an EY report, pharmaceutical companies should invest in cybersecurity measures like encryption, secure data hosting, and privilege access management to mitigate the risk of IP theft, given the GenAI models are trained on the organisation’s clinical data.

For now, it will be interesting to see how this emerging tech will provide a boost to the Indian pharmaceutical industry, which is expected to become a $130 Bn market opportunity by 2030.

[Edited By Shishir Parasher]

The post How GenAI Adoption Is Set To Change The Course Of Indian Healthcare appeared first on Inc42 Media.

The Competition Commission of India (CCI) on Tuesday (March 26) approved the proposal of the family office of Manipal Group chairman Ranjan Pai to invest in online pharmacy major PharmEasy’s parent company, API Holdings. 

The CCI also cleared an additional investment from 360 One (formerly IIFL) in PharmEasy. “CCI approves subscription to CCPS B of API Holdings by MEMG LLP and 360 ONE,” the competition watchdog said in a statement. 

“The proposed combination envisages subscription of class B compulsorily convertible preference shares (CCPS B) of the target (PharmEasy) by the acquirers. The proposed combination consists of acquisitions and fall(s) under Section 5(a)(i)(A) of the Competition Act, 2002,” it added. 

As per reports, Pai will now emerge as one of the biggest investors in PharmEasy with an estimated stake of more than 12%. Last year, reports also said that Pai would receive three seats on the board of API Holdings in lieu of the investment. With the CCI nod now in place, Pai will now reportedly join the board of the online pharmacy.

Pai’s investment is part of the online pharmacy’s mega INR 3,500 Cr rights issues, which concluded in October last year and saw participation from Goldman Sachs, Prosus and Temasek. The three investors received the CCI’s nod in January 2024 to acquire stakes in the Mumbai-based startup.

Previously, reports also suggested that the issue also saw participation from CDPQ (Canadian pension fund). 

Notably, the startup was initially looking to raise INR 2,400 Cr via the issue but later increased it to INR 3,500 Cr at a valuation cut of more than 90% from its peak valuation of $5.6 Bn in 2021. 

PharmEasy undertook the rights issue to clear a significant portion of its outstanding debt to Goldman Sachs. The startup had violated its loan covenant conditions with Goldman Sachs barely a year after raising the debt. 

As per the terms of the loan, the Mumbai-based startup was supposed to raise an equity round of about INR 1,000 Cr but the fundraise failed to materialise amid mounting losses, funding winter, and macroeconomic pressures.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy sells medicines online and also offers diagnostic tests to its customers through its other brands.

The online pharmacy has been in the eye of the storm for quite sometime now. Be it valuation markdown, funding woes or mass layoffs, it has grabbed headlines for all the wrong reasons in the recent past. 

However, it has been looking to turn around its fortunes by laying off employees in droves and streamlining operations to bring down cash burn and charting a path to profitability. In the financial year 2022-23 (FY23), PharmEasy trimmed its loss by 16.23% year-on-year (YoY) to INR 2,289 Cr while clocking a 16% YoY growth in operating revenue to INR 6,644 Cr. 

The post PharmEasy Rights Issue: CCI Clears Ranjan Pai, 360 One’s Stake Acquisition appeared first on Inc42 Media.

D2C food and beverage startup Epigamia’s sales crossed the INR 150 Cr mark in the financial year ended March 31, 2023. The Mumbai-based startup’s sales stood at INR 168 Cr in the financial year 2022-23 (FY23), an increase of 24% from INR 135.7 Cr in the previous fiscal year.

Epigamia was founded in 2015 by Rohan Mirchandani, Uday Thakker, Ganesh Krishnamoorthy, and Rahul Jain as a Greek yogurt brand. Over the years, the startup has expanded its product portfolio and now also sells products like smoothies, protein drinks, and desserts. 

It sells its products via its website, various ecommerce marketplaces, and retail stores. 

Including other income, its total revenue grew 23% to INR 172 Cr from INR 140.4 Cr in FY22. 

However, the startup’s net loss increased 13% to INR 67 Cr in FY23 from INR 59.5 Cr in the previous year. 

Where Did Epigamia Spend?

Total expenditure zoomed 20% to INR 239 Cr from INR 200 Cr in FY22. 

Procurement Cost: The startup spent INR 110 Cr to procure raw materials, an increase of 27% from INR 86.8 Cr in the last year.

Advertising Expenses: Epigamia’s marketing and advertising expenses increased 22% to INR 44.2 Cr during the year under review from INR 36.2 Cr in FY22.

Employee Expenses: Despite the rise in its sales, Epigamia managed to reduce its employee costs by 7% to INR 30 Cr in FY23 from INR 32.5 Cr in the previous year.

The startup last raised a major funding round in 2019, when it bagged $26 Mn in Series C round. Overall, it has raised a total funding of around $60 Mn till date. It counts the likes of Verlinvest, Danone Manifesto Ventures, DSG Consumer, Deepika Padukone, and Innoven Capital among its backers. 

As per a recent report by Moneycontrol, Verlinvest, which owns around 30% stake in Epigamia, is looking to sell a part of its stake in the D2C startup. The exit is likely to take place in parallel with Epigamia raising a primary round to further expand the number of products in new categories, such as milkshakes and desserts. 

Epigamia competes against the likes of Milky Mist, Amul, Mother Dairy, and iD Fresh.

The post Deepika Padukone-Backed Epigamia’s Sales Cross INR 150 Cr Mark In FY23 appeared first on Inc42 Media.

The biotech pavilion will be among the over 10 pavilions at Startup Mahakumbh, which will be held from March 18-20 in New Delhi, and will provide the startups from the sector an opportunity to showcase their innovations and connect with leaders and experts from the field.

Startup Mahakumbh is being organised by industry bodies ASSOCHAM, Nasscom, Bootstrap Incubation & Advisory Foundation, TiE, and the Indian Venture and Alternate Capital Association (IVCA) to bring together the entire Indian startup ecosystem, including startups, VCs, angel investors, family offices, HNIs, and potential corporate partners.

The three-day event will host 2K+ startups, 50+ unicorns, 10+ thematic pavilions, 1K+ investors, 300+ incubators and accelerators, 3K+ conference delegates, 10+ country delegations, and 50K+ business visitors. 

The biotech pavilion at the event will be led by Taslimarif Saiyed, director and CEO of C-Camp.

Expressing excitement about the potential impact which the pavilion can create, Saiyed said, “The biotech pavilion at Startup Mahakumbh will serve as a catalyst for innovation and collaboration within the biotechnology sector. We are thrilled to provide startups with a platform to showcase their innovations, connect with industry experts and access the resources they need to succeed.”

Opportunities Tailored To The Needs Of Biotech Startups

The pavilion aims to foster innovation and enable collaboration within the biotechnology sector. Distinguished keynote speakers from the industry will share their insights, providing a holistic view of the current landscape and future trends. Interactive discussions and workshops led by seasoned experts in the biotech and healthtech domains will offer learning experiences for attendees.

The speakers and mentors include BIRAC MD Dr Jitendra Kumar, Strand Lifesciences cofounder Dr Vijay Chandru, String Bio CEO and cofounder Dr Ezhil Subbian, Lakshmikumaran and Sridharan Attorneys executive director Dr Malathi Lakshmikumaran, and more. 

Biotech startups aiming to scale globally will learn national and international market outreach strategies in the specialised go-to-market strategies session. 

The pavilion will also feature personalised mentoring sessions on intellectual property rights and legal advisory, providing startups with crucial guidance on protecting their innovations and navigating legal challenges. In addition, investors from the biotech and pharma sectors will engage in reverse pitches, offering valuable insights and potential funding opportunities to participating startups. Finally, the pavilion will provide networking opportunities with industry leaders, heads of R&D Labs, investors, and fellow startups. 

“Indian pharma is working towards unleashing the expertise of India and building innovations for India and the world. New opportunities are coming up in diagnostics, digitally-enabled health solutions and biotech manufacturing. Innovation capacity must be built, eyeing India-specific and global problems and competing with the world,” Saiyed said on the potential of the biotech sector. 

The post Startups Are All Set To Showcase Their Groundbreaking Innovations At Startup Mahakumbh Biotech Pavilion appeared first on Inc42 Media.

Bengaluru-based healthtech startup Sugar.fit has raised an additional $5 Mn (around INR 41 Cr) as a part of its extended Series A funding round  led by B Capital.

The latest investment took Sugar.fit’s total Series A  funding to $16 Mn (around INR 132.5 Cr).

In October last year, the startup raised $11 Mn led by MassMutual Ventures and existing investors, including Tanglin Venture Partners, Endiya Partners, and Cure.Fit. 

The fresh capital will be used to expand Sugar.fit’s technology stack and product range. Moreover, it will also deploy the funds to increase its brand presence and speed up research and development in diabetes management.

Founded in 2021 by Madan Somasundaram and Shivtosh Kumar, Sugar.fit is a healthtech startup offering diabetes management and reversal through a data-centric approach. In the last 18 months, the company claimed to have served more than 30,000 users on its platform.

Somasundaram said, “Health habits of consumers have changed over the past few years and the need for a new tech-driven approach is paramount for sustainable health outcomes. Sugar.fit has created a unique platform to help meet this demand.” 

Karan Mohla, general partner at B Capital said, “India faces the challenge of managing a dual disease burden, marked by the increasing prevalence of chronic care conditions, notably diabetes. Despite significant investments in healthcare, we continue to grapple with the enduring challenges of access, affordability, and quality. We are genuinely enthusiastic about the Company’s journey ahead and its ambitious vision to establish India’s premier integrated chronic healthcare platform.”

The company claims to have established an omnichannel presence in Bangalore alongside operating 7 Diabetes Clinics across the city. 

Sugar.fit provides a comprehensive diabetes care programme that incorporates various devices like continuous glucose monitors, fitness trackers, and health diagnostics. It also offers convenient access to diabetes specialists and health coaches.

In 2021, Sugar.fit raised $10 Mn in a seed funding round .It is backed by investors like MassMutual Ventures, B Capital, Curefit, Endiya Partners and Tanglin Venture Partners.

The company competes against the likes of health and fitness startups such as Stratfit, Growfitter, Fitnapp, and HealthifyMe, HealWell24 and Malaika Arora-backed SARVA Yoga

Healthtech startups have started gaining investors traction for quite some time now.

For instance, Zeno Health has raised $25 Mn in its Series C funding round led by South Korean private equity (PE) firm STIC Investments and existing investor Lightbox.

Another healthtech startup CureBay said it has raised INR 62 Cr (approximately $7.4 Mn) in its Series A1 funding round led by existing investor Elevar Equity.

The post Diabetes Focussed Sugar.fit Nets $5 Mn To Ramp Up Tech Stack, Product Portfolio appeared first on Inc42 Media.

The Indian healthcare ecosystem is going through a paradigm shift, piggybacking on the back of the rising number of tech-savvy Indian founders entering the healthtech realm.  

This shift has today put India on the global pulpit, abreast of the countries that have some of the most advanced healthtech practices in the world. Consequently, the Indian healthtech market is estimated to become a $37 Bn market opportunity by 2030, growing exponentially from $2.7 Bn in 2022.

Amid this, the rise of technologies like AI and ML has only made healthcare systems, processes and operations more efficient, promising increased longevity for individuals.   

It is imperative to mention that the rise of AI is all set to change the game further, as it can reduce errors and automate repetitive and often time-consuming tasks so that the healthcare staff can focus on what truly matters — patient well-being — thereby increasing patient satisfaction.

Betting big on this transformation is Pristyn Care, a new-age healthcare company, which aims to democratise equitable surgical healthcare in India.

Founded in 2018 by husband-wife duo Dr Vaibhav Kapoor and Dr Garima Sawhney and their childhood friend Harsimarbir Singh, healthtech unicorn Pristyn Care specialises in simplifying the end-to-end healthcare journey of patients undergoing surgical procedures. This Gurugram-based startup is present in 30+ cities and clocked INR 494 Cr in FY23 revenues.

Besides being ahead of the curve in tech adoption, the healthtech startup uses an AI-powered medical trainer, MIRA.AI, to offer highly engaging training modules to its care coordinators, who, in turn, are responsible for making patients’ healthcare journey seamless.

Today, Pristyn Care is one of India’s few healthcare startups that has been swift in embracing tech advancements ranging from AI and ML-enabled diagnosis of patient reports to adoption of electronic medical record (EMR) systems and more.

In a bid to comprehend the transformation that the Indian healthtech ecosystem, especially startups, is going through to offer patients a seamless healthcare experience, we spoke with cofounder Singh, and here’s what he said.

Edited excerpts…

Inc42: Tell us about the technologies that have contributed to Pristyn Care’s success. How do they create a smooth patient experience?

Harsimarbir Singh: We have 40+ tech products for the end-to-end journey of patients. An average weekend sees 1,000+ patients walking in and out of OTs at 300+ hospitals in 30+ cities. We use a white-label approach to pass information across various stakeholders, including doctors, care coordinators and insurance teams. 

A patient is connected to a care coordinator who has their support data when they walk in. We have developed an AI and ML-enabled electronic medical record (EMR) system for surgeons and they can access patient data and know their medical history. It not only simplifies communication and accurate record-keeping but also improves healthcare delivery, identifying high-risk patients. The smart AI and ML systems also make recommendations to the doctors who suggest the appropriate diagnostic reports, surgery and medicine. 

We can inform the patient about the insurance coverage and deductions in various hospitals with 95% accuracy in 30 seconds, as opposed to 24 hours taken by the conventional system. Our tech platform also  helps us provide recommendations for hospital choices to patients. 

Inc42: What specific qualities and skills do you prioritise in tech talent? How do these align with the company’s overall vision and mission?

Harsimarbir Singh: We offer a steep learning curve and emphasise stability while hiring tech talent. We look for candidates who understand the urgency of the industry and can work outside of regular work hours to address emergencies and ensure patient data security. If a tech tool breaks on a Friday night, confidential data of patients will be at risk and we cannot wait till Monday to fix it. They must be willing to learn more. Our tech team is like a training school in modern technologies and industry intricacies for young talent. 

Inc42: Did you encounter any challenges or unexpected developments when building your tech ecosystem? How did you overcome them, and what did you learn from the experience?

Harsimarbir Singh: Building tech for experienced doctors is challenging. Most traditional hospitals lack modern-age technology beyond billing systems and apps. Not only do we have to build a tech ecosystem but also encourage tech adoption. 

Using AI in healthcare comes with its own set of challenges, including ensuring machine accuracy. Healthcare does not have standardised solutions, and there is a risk of human error. We have built and fine-tuned AI foundation models to cater to the massive population, speaking in several languages and dialects. 

Doctors in India face challenges with adopting electronic medical records due to language barriers. Still, a surge in online consultations during the pandemic led to a 75% increase in the adoption of electronic medical records (EMR). ChatGPT and the older foundational model also helped us eliminate errors that may occur due to the age and experience of doctors or human limitations. 

Inc42: How do you handle potential ethical concerns or unintended consequences from technology deployment? 

Harsimarbir Singh: We do an advanced level of pre-anaesthesia check at home. To ensure accuracy, our team calls the patient for an entire evaluation again. While facilitating insurance, there is a 5% error margin rate, which is communicated to the patients and deduction is waived if it happens. 

Our outreach team calls the discharged patients on the 3rd, 7th, 30th and 60th day to encourage free-of-cost follow-ups. We make a doctor’s job easy through recommendation engines, but the information only goes into the system when the doctor acknowledges it. 

Inc42: Please explain how MIRA.AI works and helps close the digital divide for patients, doctors and staff.

Harsimarbir Singh: Every time a new care coordinator comes in, we train them on several intricate topics. The content we create for this is massive. Currently, we have training material on 90+ disease types, over 50 surgeries and 50+ diseases with MIRA. The educators in MIRA look human-like. A reiteration evaluation tool reminds the care coordinators about the disease types periodically. 

Inc42: What are your thoughts on emerging technologies like GenAI and their potential impact on healthcare? 

Harsimarbir Singh: I am excited by Gen AI and foundational models and large action models. It’s difficult for a human being to grasp a patient’s genetic history in a 20-minute conversation. Though doctors will provide consultations, large language models or foundational AI will consider minute details of a patient’s living conditions to offer customised medication. 

Utilising a machine to analyse medical test results and make recommendations will boost the efficiency of diagnoses by 20X. It takes 20 years for a new drug to come into the market because clinical trials and processing could be faster. Machine learning and GenAI will cut the timeline by half. Suggestive machines for patient documentation will do away with several manual errors. 

Remote monitoring will also catch up. Training will also improve drastically, as we are already using MIRA. Soon, doctors will learn about modern technology in undergrad. Vision AI will allow them to interact with a trainer who’s a machine operating on an artificial patient. Doctors in developing nations like India will be able to receive training from experts at Johns Hopkins University without being physically present.

The post Pristyn Care Cofounder Harsimarbir Singh On Staying Ahead Of The Tech Curve In Healthcare appeared first on Inc42 Media.

The ever-evolving landscape of healthcare continues to be permeated by disparity in accessing equitable healthcare, marked by a lack of robust financial aid. Despite the availability of medical insurance, the penetration remains meagre with only a few people being able to access the high packages. 

Apart from the low penetration, the current medical insurance landscape is fraught with plaguing issues like under insurance, wherein a plethora of diseases, and secondary, and elective surgeries are not covered by the same. 

In tandem with the prevalent gaps in healthcare accessibility and the fragmented medical insurance market, the emergence of embedded finance has proven to be formidable. Redefining conventional financial models where a patient has to pay all the fees up-front, embedded finance is rooted in delivering robust financial support at the point of care. 

The transformation of the healthcare payment system is actively opening new avenues to address operational inefficiencies in diverse financial aspects. Striving to offer innovative healthcare-centric financial solutions, the industry is expected to grow at a CAGR of 30.4%, reaching $21.1 Bn by 2029.                        

Innovative Payment Solution 

Embedded finance has emerged as a catalyst for empowering patients, as it delivers underserved segments tailored financing options for out-of-pocket health expenses. Emphasising on delivering enhanced patient experience, fintech platforms offer an array of financing solutions at the point of care like zero-cost EMI, which are specifically curated to cater to diverse portfolios, thereby reducing the likelihood of financial onus. 

Dynamic fintech platforms have imbued this innovative payment solution with a completely digital process, and quick loan disbursals, making healthcare services more accessible and affordable. As a result, this also ensures necessary care is not hindered by financial constraints.

Streamlined Operations All The Way 

Transcending to a stage where it acts more than just a financing tool, embedded finance has opened new avenues to streamlined processing, like completely digital KYC verification which is completed within minutes. 

Further, featuring instant credit approvals and payouts, embedded finance maximises operational efficiency, whilst expanding the patient base which alleviates financial burdens. 

Additionally, with embedded finance platforms’ in-house tech and user flow, patients can avail credit at the point of care with partner clinics, thereby allowing for more enhanced service capabilities and customer satisfaction.             

Technological Integration For A User-Friendly Experience

For so long, technology has been the bedrock of innovation, spanning every aspect of diverse industries. Leaving no exception, technology has made an indelible mark in the healthcare and finance space, by making sure embedded finance platforms deliver a seamless and intuitive user experience for patients. 

Furthermore, these platforms strategically integrate with digital infrastructure like Aadhar and NSDL to enhance efficiency and security, promoting streamlined interactions within the broader digital ecosystem.

Cultivating A Thriving Healthcare Ecosystem 

It’s an understatement that embedded finance solutions have significantly contributed towards building a thriving healthcare ecosystem. 

With three out of four Indians being either uninsured or underinsured, a majority of patients routinely had to pay for non-critical medical procedures from their pockets, but advanced fintech solutions like zero-cost loans at the point of care and insurance add-ons have helped in covering out-of-pocket expenses. 

Additionally, embedded finance has carved a distinctive niche in the healthcare landscape by creating a comprehensive system for effectively managing healthcare payments, financing, and health-related savings. 

Empowering Public Healthcare Systems

Within the intricate relationship between embedded finance and public healthcare systems, the former has indirectly contributed to alleviating strain on public healthcare facilities by enabling individuals to access private healthcare services through flexible financing options. 

Additionally, this redistribution of patient volume has not only ensured better service for those relying on public facilities but has also played a pivotal role in enhancing the overall efficiency of the collective healthcare systems- be it private or public. 

Building a Future Marked with Continued Innovation

Undoubtedly, the future of embedded finance is poised to experience an exponential growth trajectory. An increasing number of industries, including healthcare are leveraging its seamless financing model to revolutionise the healthcare space. 

Holding immense promise for continued innovation, the industry will be characterised by adaptation to meet evolving customer needs. 

Driven by strategic partnerships and technological advancements, embedded finance will continue to offer accessible and affordable financing solutions to diverse patients, paving the way for creating an inclusive healthcare ecosystem. 

The post Future Of Healthcare: How Embedded Finance Is Transforming Patient Experience appeared first on Inc42 Media.

Delhi NCR-based healthcare unicorn Pristyn Care is undertaking a restructuring exercise which will see around 120 employees losing their jobs, sources told Inc42.

The startup has already begun the retrenchments, which will impact employees across teams. The exercise is part of its plans to turn profitable in the financial year 2024-25 (FY25) before going public in 2027, they added.

The impacted employees will receive a severance package based on their notice period and the startup will also accelerate vesting of their ESOPs. Pristyn Care has also extended the medical insurance coverage for the affected employees and their families for the next six months. 

A spokesperson of the startup confirmed the layoffs with Inc42. “As part of the transformation, specific adjustments to the workforce structure will be made, affecting less than 7 to 8% of the 1,700 employees, with the majority in entry-level and support functions. These changes are essential to align with the company’s strategic vision of efficiency, performance excellence, and long-term sustainability,” the spokesperson said.

Pristyn Care is focusing on profitability before putting in motion its initial public offering (IPO) plans. Consequently, it has been exiting from cities and discontinuing categories where it doesn’t see much traction.

While it has exited six tier-II cities like Kanpur, Siliguri, and Ludhiana, it discontinued three redundant categories – hair removal, skin care, and general dental procedures – recently to direct its resources towards remaining 20 other categories.

“Over the past few months, Pristyn Care has embarked on a transformative journey, undergoing a comprehensive operational overhaul. This initiative focuses on streamlining operations, enhancing efficiency, and elevating patient care across various domains such as care coordination, medical practices, hospital partnerships, insurance, marketing, and technological advancements,” the spokesperson added. 

The startup’s operating revenue increased 45% to INR 452.8 Cr in FY23 from INR 312.7 Cr in the previous fiscal year. However, net loss zoomed 38% to INR 382.5 Cr during the year under review from INR 277.1 Cr in FY22. The startup is now eyeing to end the ongoing fiscal year with around INR 900 Cr revenue while bringing down EBITDA loss by 50%. 

Founded by Harsimarbir Singh, Dr Vaibhav Kapoor, and Dr Garima Sawhney in 2018, Pristyn Care offers secondary care surgeries through its network of more than 200 clinics, 700 hospitals, and a team of 400+ in-house super-speciality surgeons across 30 cities in India.

Last year, the startup also began operations in Bangladesh, establishing a presence in Dhaka and Chittagong. 

Pristyn Care has raised $177 Mn across multiple funding rounds till date. It entered the coveted unicorn club in late 2021 after raising $96 Mn in its Series E round from Peak XV Partners (then Sequoia Capital India), Tiger Global, Winter Capital, Eriq Capital and Hummingbird Ventures at a valuation of $1.4 Bn. 

The startup competes against the likes of Practo, PharmEasy, and MediBuddy. 

The post Exclusive: Pristyn Care Lays Off 120 Employees, Eyes Profitability By FY25 appeared first on Inc42 Media.

Fitness unicorn Cult.fit has raised INR 84.5 Cr (about $10.2 Mn) in its series F funding round, led by existing backer Valecha Investments. The round also saw participation from Extreme Brands LLP, L&K Wellness Services Private Limited, among several others.

As per Cult.fit’s regulatory filings with the Registrar of Companies, the startup allotted over 7.5 Lakh Series F compulsory convertible preference shares (CCPS) to Valecha Investments in October last year, raising INR 26.4 Cr. This was followed by allotment of 5.8 Lakh CCPS to Gul Advani, who invested INR 28.3 Cr in the company.

Besides, as per the Tata Digital-backed startup’s regulatory filings seen by Inc42, it proposed to raise INR 7.50 Cr by issuing and alloting 1.55 Lakh equity shares to Extreme Brands LLP in November last year.

In another resolution passed by the shareholders of Cult.fit’s parent Curefit Healthcare Private Limited at its extra-ordinary general meeting held last month, the startup further allotted 1.65 Lakh Series F CCPS to L&K Wellness Services and Surendra Kedia, raising INR 8 Cr.

The development was first reported by Entrackr.

Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit offers a range of fitness services including offline group workouts at Cult.fit centres and other gym- or equipment-based workouts at partner gyms and fitness centres across the country. 

With the latest fundraising, the startup has raised over $670 Mn across multiple rounds till date. It counts the likes of Zomato, Temasek, and Kalaari Capital among its marquee investors.

Last month, Inc42 exclusively reported that CureFit laid off about 120 employees in a restructuring exercise, which impacted workforce across its sub-brands such as Sugar.fit, Carefit, and Cult.fit.

Cult.fit’s operating revenue more than tripled year-on-year to INR 694 Cr in FY23 and loss narrowed to INR 551 Cr.

The post Zomato-Backed Cult.fit Bags $10 Mn From Valecha Investments, Others appeared first on Inc42 Media.

A war-torn world of swinging allegiances, an election year for the fastest-growing economy, and a once-in-a-lifetime AI revolution – these ingredients make 2024 a concoction to watch out for. 

We try to connect the dots from last year to project what 2024 could mean for India and its healthcare entrepreneurship ecosystem.

Here’s what we think will move (or not) in the next 12 months:

Quantum Of Investments In Healthcare Will Remain Stagnant

Startups bridging healthcare gaps, will themselves need more bridge rounds. Healthcare startups in India will continue to see cautious investor sentiment as a result of:

• Only ~200 healthcare startups were launched in 2023 – so there’s a much smaller top of the funnel for investors to choose from and invest in early-stage bets.
• The number of scaled startup assets for large Series C+ rounds is limited – there are only ~40 Series A/B healthcare startups in India. So, we will hear fewer large round announcements in 2024.

We anticipate the startup investments to be limited to the $1 Bn mark this year. Many scaled startups will stitch together bridge rounds at lower valuations to match the new market reality.

GLP1s Will Become More Common Place In India

The “miracle” GLP1 weight loss drugs are a scientific breakthrough that tackles diabetes and delivers ~8-20% weight loss in six months through its injectable and oral formulations. 

GLP1s were already an INR 300 Cr market last year in India, growing at ~100% YoY (global market is $12 Bn+, making Novo Nordisk EU’s most valuable company overtaking luxury brand LMVH). 

We foresee two strong factors that will bring the action to India this year:

• Increasing awareness (given its media and word-of-mouth publicity)
• Glenmark launching the first Liraglutide biosimilar at INR 100/pen! 

This will resolve some of the current supply side constraints. This modality will become commonplace with all existing weight-loss players and with the more enterprising endocrinologists in 2024.

B2B Startups Selling To Hospitals Will See More Adoption In India

Historically, India has been a bad market for B2B healthcare startups (focused on India sales – with the exception of MedikaBazaar). 

Why do we think this will start changing? 

Well, because PE investments in Indian hospitals will now look for tech levers to bring operating leverage to improve the bottom line. 

Last year saw $4 Bn+ of private equity capital flow into Indian hospitals and specialty chains. We see market signals that the PE portfolio companies will now look to invest in technology solutions to improve their margin profile, standardise the technology stack, and integrate more cohesively. 

If you are a B2B health-tech product (or services) founder – might be a good time to redo your pitch deck and demonstrate significant bottom line impact.  

Successful D2C Stories From 2024 Will Become A Playbook

Mamaearth IPO (~8x subscribed, modest 5% listing gain) has now set a template for consumer brands to go omnichannel, hit profitability and enter public markets. The company reported ~40% of their FY23 sales coming from offline channels. 

The D2C consumer thesis is updated now – build the brand online while the CAC is under control, then hire old wisdom from FMCG giants (or work with them) to place the products on shelves and aisles to be picked up on their merit. 

We foresee that many of the remaining D2C/consumer brands will learn from this and move towards believable business models with viable unit economics. This builds both consumer and investor trust.

As we see large INR 1000 Cr+ healthcare brands with M&A/IPO exits, the early-stage funding for new undifferentiated D2C healthcare brands will continue to decline, and only good growth assets will receive capital to cross over to profitability.

Expect More Investor Diligence Within Healthcare AI

We have seen exponential growth of AI and its promise (field changes every few weeks now) last year. 2024 will see increased interest in AI-first startups which leverage: 

• Global healthcare-specific LLMs (like MedPaLM2, Meditron, Hippocratic AI)
• Vernacular language models (Sarvam AI, Krutrim, and 
• Newer models that can be trained using the government language repository Bhashini) for the Indian context. 

Investors (coming from the hype waves of crypto, web3 and ed-tech) will invest with interest but caution.

Moreover, tech-giants will continue to invest in creating better and more powerful foundational models and infrastructure globally. 

The rate of release of new models (Gemini, GPT-5 in the pipeline) will probably not match 2023 but on the positive side, this competition is already leading to a usage price drop (example, GPT slashed its price by ~50% in Jan ’24). 

This creates an opportunity for less-funded but agile Indian start-ups to build use-case-specific healthcare innovation by leveraging this infrastructure and building with a focus on explainability, India contextualization and user experience.

Hospital Gold Rush Will Continue And Strengthen This Year

We will see more hospital consolidation, M&A and IPOs (on main and SME boards). The Indian hospital industry is at a 20-25x EBITDA multiple today and India added 2000+ beds last year, a sector growing at ~20% YoY. 

The growth will be even higher in single-speciality chains. We will also see more roll-up and M&A openness from single-founder hospitals/clinics to work with corporate chains and established startups.  

Soft Nudge Policies For ABDM Adoption Will Be Announced 

50 Cr+ ABHA IDs (~30%+ of the population) have been created to date (33 Cr actively linked). The NHA stack has been one of the focus areas for the government and post the elections, we can expect some soft nudges in policy to re-emphasise this focus. 

Jan Aushadhi Kendras (10K+ across India serving 2000 generic medicines) and ABHA launch (in 2018) have yet to be followed up by any big-scale overhaul. 2024 could be the year of inflexion. 

Last year already saw the government testing waters with healthcare legislation (branded prescription, pharma-doctor relationships) but not going fully after it given the complexity and stakeholder dynamics. That could change soon.

Consolidation Of VCs And More Accountability For Syndicates And Angel Platforms

This one is for our own tribe. We’ve already seen some VCs exiting India, while some are in talks of M&A. The reality of the venture world is that only 15% of VCs deliver a 2x-3x return (benchmark for beating market growth rate), and thus raise a second fund.  

We will see many VCs exit the market as “beta” investing (the India growth story) doesn’t work in the venture world and only differentiated, thesis-driven “alpha” chasers will continue to raise and deploy. 

India has 120+ angel networks and syndicate platforms that have provided the first cheque and capital (~top 5 platforms invested in ~180 startups in 2023) in a tough macro environment where VC funding was slow. 

On the flip side, this has resulted in an unchecked growth of syndicates and angel platforms luring retail investors into a risky asset class without know-how and risk appetite. We feel this year will see some guidelines that define the roles and regulations for this category of investors.

On a concluding note, we think the term “funding winter” will cease to exist in popular memory. This is the new reality of investments. The recent boom in investments was an aberration and we will all adjust to the evolving reality of healthcare, entrepreneurship and economics.

The post Trends Shaping India’s Healthcare Startup Landscape appeared first on Inc42 Media.

The COVID-19 pandemic delivered a seismic shock to India’s medtech industry. After reaching its zenith in 2020, the sector’s meteoric rise suddenly stalled. Challenging macroeconomic crosswinds and skittish investors applied the brakes to growth and innovation seemingly overnight.

Yet from the ashes of the crisis, urgent public health needs have emerged that are determined to reshape med-tech’s future. As Indians battled the virus, glaring gaps in healthcare access and affordability came to the fore. The demand for patient-centric solutions that transcend physical and economic barriers grew increasingly vocal.

Now, as we step into 2024, has the industry internalised these lessons? Will medtech firms rise to the challenge of democratising care through technology? As India looks ahead with cautious optimism, all eyes are on the industry. 

At this juncture, it would hardly be an exaggeration to say that we stand on the cusp of a healthtech renaissance, and it will require the sector to reaffirm its highest purpose: advancing care and saving lives.

The Shift Towards Digital Health

The pandemic necessitated remote healthcare delivery models. Telemedicine, virtual consultations, remote monitoring, and cloud data management became lifelines for care continuity. Patients experienced their convenience and safety firsthand.

In 2024, the digitisation of health services will only accelerate. Telehealth platforms are streamlining appointments and follow-ups. Wearables allow round-the-clock monitoring without visits. Digital therapeutics uses smartphone apps as treatments. Patient comfort with digital engagement is increasing exponentially.

For medtech firms, integrating effortlessly into digital ecosystems is now imperative. Innovating accessible products like self-use test kits and wearables is critical. Data interoperability and cybersecurity are also vital focal points. Ultimately, India’s healthcare future will be defined by connectivity and convenience and medtech’s role is to enable care from anywhere.

The Rise Of AI

Artificial intelligence is already transforming medical products. AI-imaging accurately interprets tests, scans, and X-rays. Machine learning powers early disease diagnosis and risk predictions based on patterns in data. Surgical robots boost precision and consistency.

In 2024, AI’s healthcare contributions will grow significantly. India is witnessing surging investments in AI-focused startups. Large firms are actively acquiring AI capabilities. This technology promises to expand access, efficiency, and quality.

Medtech companies must harness AI ethically to create intelligent tools that augment clinicians and empower patients. Systems like AI-triage chatbots and automated pill dispensers are just the beginning. The possibilities to enhance care through AI are endless, but they depend on medtech innovation.

Wearables: Driving Personalised Care

Wearable health monitors are entering the mainstream, able to track vitals like heart rate, sleep, and activity continuously. Their data grants users unprecedented insights about their well-being. Doctors also gain objective patient information to complement visits.

This technology stands to enable genuine preventive and proactive care based on an individual’s lifestyle. Medtech firms must capitalise on this potential for personalised medicine in 2024.

Advancing wearables to be more accurate, intuitive, and physician-trusted is essential. Miniaturisation and connectivity will allow discreet 24/7 monitoring. Integration with electronic records would close the data loop. Propelled by these innovations, the wearable revolution can truly reshape patient trajectories.

Looking Ahead

2024 promises to be a transformative year for Indian medtech as these digital trends gain momentum. The industry’s focus must remain on developing intelligent tools that expand access, improve care, and empower end users.

Affordability and usability will be crucial for mass adoption. Policy and regulation must foster innovation while managing risks. But by harnessing technology ethically, medtech can drive India’s healthcare ecosystem forward. The future is data-driven, connected, and patient-centric. Medtech Innovation must continue embracing this reality to deliver better health outcomes for all.

The post Medtech Outlook 2024: Trends & Innovations Shaping India’s Healthcare Landscape appeared first on Inc42 Media.

Close on the heels of PharmEasy’s ‘oversubscribed’ rights issue, the Competition Commission of India (CCI) on Monday (January 30) greenlit the proposal of the investors to increase their stakes in the digital pharmacy.

In October last year, the healthtech unicorn said it concluded an INR 3,500 Cr rights issue. Prior reports suggested that the issue saw participation from Singapore’s sovereign wealth fund Temasek, CDPQ (Canadian pension fund), among others.

In back-to-back orders, the competition watchdog approved the subscription of PharmEasy’s compulsorily convertible preference shares (CCPS) by Goldman Sachs India (through two separate funds), MacRitchie Investments and EvolutionX (both owned by Temasek), and CDPQ. 

The CCI also gave its approval to Dutch investor Prosus’ proposal to acquire additional shares of API Holdings, PharmEasy’s parent. While greenlighting the petitions, the Commission noted that the transactions ‘did not give rise to any competition concerns’.

“The target proposes to raise capital through issuance of CCPS B by way of a rights issue. The Acquirer (CDPQ) is an existing investor in the target (PharmEasy) and is a preemption right holder under the existing SHA… The proposed transaction will result in the Acquirer continuing to hold approximately the same shareholding in the Target,” the CCI said in its order about CDPQ acquiring an additional stake.

This comes three months after the unicorn said it concluded its rights issue, without disclosing the name of the investors.

PharmEasy went for the rights issue amid a looming debt crisis which erupted last year. The startup plans to use the funds raised via the rights issue to service a significant portion of its outstanding debt to Goldman Sachs.

The startup violated its loan covenant conditions with Goldman Sachs barely a year after raising the debt. As per the terms of the loan, PharmEasy was supposed to raise an equity round of about INR 1,000 Cr, which failed to materialise amid its company’s mounting losses and the ongoing funding winter. 

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy is an online marketplace for medicines. It also sells diagnostic tests to its customers through its subsidiaries and brands under its umbrella.

PharmEasy clocked a 16% YoY growth in operating revenue to INR 6,644 Cr in FY23 as against a loss of INR 2,289.8 Cr during the period under review, down 16.2% YoY. 

PharmEasy has also been grappling with valuation markdowns by its key investors such as Janus Henderson and Neuberger Berman. In a bid to streamline operations, the startup also undertook multiple rounds of layoffs and fired more than 500 employees since 2022.

The post PharmEasy Rights Issue: Goldman Sachs, Prosus, Temasek Get CCI Nod To Acquire Stake appeared first on Inc42 Media.

Epharmacy startup PharmEasy saw its operating revenue cross the INR 6,000 Cr mark in the financial year ended March 31, 2023. The Mumbai-based unicorn reported an operating revenue of INR 6,643.9 Cr in the financial year 2022-23 (FY23), a jump of 16% from INR 5,728.8 Cr in the previous fiscal year.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy sells medicines online and also offers diagnostic tests through its subsidiaries. 

The startup primarily earns revenue through sales of medicines via its marketplace. In FY23, the startup generated a revenue of INR 5,925.3 Cr through the sale of pharmaceutical and cosmetic products, while earning INR 701.2 Cr through diagnostic and other services. In FY22, it had earned INR 5,229.9 Cr by selling medicines, while the revenue from diagnostic and other services stood at INR 417.8 Cr.

Including other income, the startup’s total revenue stood at INR 6,699.7 Cr, an increase of 15% from INR 5,781 Cr in the previous fiscal year. 

However, net loss increased over 31% to INR 5,211.7 Cr in FY23 from INR 3,992.4 Cr in FY22 due to an impairment loss of INR 2,921.9 Cr during the year under review. Excluding the impairment loss, PharmEasy’s net loss declined 16% to INR 2,289.8 Cr during the year under review from INR 2,731.7 Cr in FY22. 

Where Did PharmEasy Spend?

The startup’s total expenditure increased a mere 6% to INR 8,974 Cr from INR 8,491.5 Cr  in FY22. 

Procurement Cost: It accounted for about 63% of the total expenditure. PharmEasy’s procurement cost rose 12% to INR 5,730.8 Cr in FY23 from INR 5,113 Cr in the previous year. 

Employee Benefit Expenses: The startup managed to slash its employee cost by 12% to INR 1,283.3 Cr in FY23 from INR 1,458.9 Cr in the previous fiscal year. It is pertinent to note that the startup undertook multiple rounds of layoffs in 2022 and 2023. 

Marketing Cost: In a bid to cap its expenditure, the startup brought down its marketing cost by over 50% to INR 235 Cr in FY23 from INR 494 Cr in FY22. 

PharmEasy, which shelved its IPO plans in 2022, was facing a severe cash crunch last year. However, it recently managed to raise INR 3,500 Cr (around $424 Mn) in a rights issue. 

The startup said it would settle a portion of its debt from the proceeds of the rights issue.

PharmEasy, like edtech startup BYJU’S, has been trying to repay the debt it raised from Goldman Sachs. Earlier, the startup breached its loan covenant terms with Goldman Sachs within a year after raising the high-cost debt.

As per the loan terms, the startup was expected to raise an equity round of around INR 1,000 Cr ($120 Mn) but failed to do so. The company had raised the debt to pay off a previous debt that it took to buy Thyrocare.

Amidst all these, PharmEasy last year appointed Yatharth Bhargova as the new group CFO of its parent entity API Holdings Private Limited. PharmEasy has raised capital of about $1 Bn till date and counts the likes of B Capital, Temasek, Eight Roads Ventures, Prosus, and Bessemer Venture Partners among its backers. It competes with the likes of Tata 1mg, MediBuddy and Practo in the online pharmacy market.

The post PharmEasy’s Sales Cross INR 6,000 Cr Mark In FY23, Posts INR 5,211 Cr Loss appeared first on Inc42 Media.

Zomato-backed fitness startup CureFit laid off about 120 employees earlier this week in a restructuring exercise, joining the long list of Indian startups which have fired employees amid the unrelenting funding winter.

The Bengaluru-based healthtech unicorn’s restructuring exercise impacted employees across its brands like Sugar.fit, Carefit, Cultfit, among others, sources told Inc42.

The startup confirmed the development in a statement but did not disclose the number of employees impacted by the exercise. 

“As part of our regular annual operating planning process, we have reduced some redundant positions with the aim of streamlining operations. This is aimed at improving productivity and setting us up for full profitability in FY25. We have done this with thoughtful consideration and with the interest of creating long term value for our stakeholders,” it told Inc42 in the statement. 

Earlier in 2020, Curefit had laid off around 800 employees in the middle of the Covid-19 pandemic. 

Founded in 2016 by Mukesh Bansal and Ankit Nagori, CureFit runs physical fitness platform Cultfit, mental health platform Mindfit, primary care vertical Care.fit, among others. However, Nagori later left the startup to work on his new venture – D2C cloud kitchen aggregator Curefoods. 

CureFit entered the unicorn club in December 2021 after raising $145 Mn at a valuation of over $1.4 Bn. The funding round was led by foodtech giant Zomato (in a cross selling deal) alongside Singapore’s sovereign fund Temasek and South Park Commons, among others. As a part of the deal, CureFit also acquired Zomato’s fitness facility arm Fitso for $50 Mn. 

After the fund raise, the startup went on to acquire the Indian business of international gym chain – Gold’s Gym.

CureFit managed to improve its financials in FY23, with its revenue jumping to INR 694 Cr and loss reducing to around INR 500 Cr. 

The startup has raised over $600 Mn in funding till date. It counts the likes of Tata Digital, Accel, Kalaari, Temasek, and Chiratae Ventures among its backers. 

The post Exclusive: CureFit Lays Off 120 Employees In A Restructuring Exercise appeared first on Inc42 Media.