Delhi NCR-based healthtech unicorn Pristyn Care’s operating revenue increased 45% in the financial year ended March 31, 2023. The Peak XV Partners-backed startup reported an operating revenue of INR 452.8 Cr in the financial year 2022-23 (FY23), an increase of 1.4X from INR 312.7 Cr in the previous fiscal year.

Founded by Harsimarbir Singh, Dr Vaibhav Kapoor, and Dr Garima Sawhney in 2018, Pristyn Care offers advanced secondary care surgeries through its network of more than 200 clinics, 700 hospitals, and a team of 400+ in-house super-speciality surgeons across 40 cities in India.

Including other income, the startup’s total revenue rose 45.6% to INR 493.7 Cr in FY23 from INR 338.9 Cr in the previous fiscal year.

Despite the increase in its top line, Pristyn Care’s net loss surged 38% to INR 382.5 Cr during the year under review from INR 277.1 Cr in FY22.

Where Did Pristyn Care Spend?

The startup’s total expenditure increased to INR 876.8 Cr in FY23, a rise of 42% from INR 616 Cr in the previous year.

Advertising Expenses: The startup’s advertising expenditure was one of the biggest expenses during the year under review. Pristyn Care spent INR 219.9 Cr under the head in FY23, an increase of 17% from INR 187.8 Cr it spent in the previous fiscal year.

Employee Benefit Expenses: Pristyn Care spent INR 198.5 Cr on employee salaries and other benefits during the year under review, up 36% from INR 146.3 Cr in FY22. 

Surgery Expenses: The startup’s expenses under the head grew 30% to INR 133.4 Cr in FY23 from INR 102.3 Cr in the previous fiscal year.

It is pertinent to note that Pristyn Care added new surgical categories, including dental procedures, knee replacement, and weight loss surgeries, in FY23. It also expanded the availability of some of its categories such as ophthalmology, gynecology and urology beyond the major metro markets.

Earlier this 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. The startup entered the coveted unicorn 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 Pristyn Care’s FY23 Revenue Inches Closer To INR 500 Cr Mark, Loss Jumps To INR 383 Cr appeared first on Inc42 Media.

Healthtech startup Healthify (formerly HealthifyMe) has partnered foodtech major Swiggy for delivery of meals and is looking to double down on its enterprise vertical. 

As part of the partnership, users will be able to order diet-aligned meals, recommended by Healthify’s AI coach Ria, from Swiggy. The customers will be able to order the meals within the Healthify app itself. 

“With Ria’s smart dietary recommendations, users can effortlessly order aligned meals through the Healthify app, simplifying sticking to a healthy diet,” the startup said in a statement. 

This feature will be rolled out for Healthify Smart subscribers beginning December 15. 

The partnership is commercial in nature, Healthify’s cofounder and chief executive officer (CEO) Tushar Vashisht said while speaking at the firm’s annual event ‘Ignite’ in Bengaluru. However, the startup didn’t disclose whether or not the offering is based on a revenue sharing model. 

“Our advancements in AI-powered photo-tracking with Snap and our strategic partnership with India’s top food delivery app, Swiggy, represent significant milestones in making healthy living accessible and actionable,” Vashisht added. 

At the same event, the startup also announced the launch of an AI-powered health platform Coach Co-Pilot to help users analyse and address their dietary, fitness, stress, and sleep patterns. The platform offers plans in accordance with each user’s specific needs. 

Healthify users will also be able to have conversations with AI coach Ria. The AI offering, in collaboration with Healthify’s other human coaches, will help users track nutrition through a picture of the food. 

On the scale of the company’s B2B vertical, Healthify said it already works with a number of companies, including AWS and HCL, and plans to forge ties with more enterprises. As part of its B2B play, the startup plans to double down on its corporate wellness programmes and apps to further deepen its presence in the enterprise sector.

Healthify recorded a 10% decline in loss to INR 42 Cr in FY23 from INR 157 Cr in FY22. During the same period, total revenue from operations surged to a record INR 228 Cr from INR 185.25 Cr in FY22. 

Vashisht said the startup is on track to achieve a ‘humble’ double-digit revenue growth in FY24. 

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

Catering to more than 40 Mn users across more than 300 cities, the startup has so far raised a total funding of $130 Mn from the likes of Khosla Ventures, Leapfrog and others. Among its 40 Mn users, 2.5 Lakh are paid users and the platform hosts more than 1,000 coaches.

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US-and India-based CareStack, a cloud-based dental practice management platform, has acquired Kerala-based artificial intelligence (AI) startup Waybeo to transform patient-practitioner communication into healthcare. 

However, the company did not disclose the financial terms of the deal.

Founded in 2009 by Krishnan R V, Manu Dev and Bijoy B S, Waybeo specialises in deep AI-based analytics for cloud telephony. It claims to be one of the pioneers in offering comprehensive solutions, including call tracking and analytics, lead response automation, sales call automation and automated voice alerts.

Waybeo claims to have witnessed an average year-on-year growth rate of around 39.42% in the last seven financial years. With a clientele of 56 enterprise customers nationwide, the company’s call-tracking product today serves about 22,000 locations across India.

Waybeo, which counts Airtel among its global investors, has delivered its deep intelligence services and optimising strategies for industry giants such as Royal Enfield, Tata Motors and Honda Cars India. 

“Integrating Waybeo’s advanced analytics into our platform is a game-changer. It aligns with our commitment to redefine dental care,” said Abhilash Krishna, chief executive of CareStack. 

Krishna added that CareStack is expanding its capabilities and reshaping patient communication, which will also help in transforming dental operations.

Prior to this acquisition, Waybeo had unveiled CS Conversations for CareStack, offering AI-powered call analysis and real-time transcriptions, which had significantly enhanced patient-practitioner communications.

“This acquisition is a strategic move that combines Waybeo’s tech proficiency with CareStack’s market reach,” said Krishnan R V, cofounder and chief executive of Waybeo. “It’s a leap toward advancing patient care standards. We are not just streamlining communication but helping elevate patient care experiences in healthcare facilities.”

Meanwhile, following the acquisition, Waybeo is also looking to expand its footprint in India and international markets. So far, the Thiruvananthapuram-headquartered startup also has a presence in Mumbai.

Besides, It is also eyeing sectors beyond healthcare, such as automobile, consumer durables, insurance, broking and real estate.

The 2015-founded CareStack is a cloud-based dental practice management software dedicated to meeting the comprehensive needs of dental offices, regardless of size. It aims to help grow the dental community including the private practitioners, dental support organisations (DSOs), and dental startups, with its software offerings.

In July last year, CareStack closed a strategic equity investment round from the Swiss dental devices manufacturer Straumann Group. The company had then told Inc42 that it was looking to foray into Singapore and Australia by the end of 2022 and expand further to New Zealand and Spain in 2023.

As per a report, the global dental practice management software market size is estimated to reach $3,455.40 Mn by 2032, growing at a CAGR of 9.7% between 2023 and 2032.

The post CareStack Buys Airtel-Backed Waybeo To Augment Patient-Practitioner Communication appeared first on Inc42 Media.

Bengaluru-based healthtech startup MediBuddy’s net loss widened 24% to INR 321.7 Cr in the financial year 2022-23 (FY23) from INR 259.3 Cr in the previous fiscal year, hurt by rising expenses.

MediBuddy’s operating revenue also grew 27.2% to INR 297.7 Cr during the year under review from INR 234.1 Cr in FY22.

Founded in 2015 by Satish Kannan and Enbasekar Dinadayalane, MediBuddy offers video consultations with doctors, and helps in booking lab tests and ordering medicines. In June 2020, doctor consulation platform DocsApp also merged with MediBuddy.

The startup earns a majority of its revenue from sale of services.

Including interest income and other non-operating income, MediBuddy’s total revenue stood at INR 327.2 Cr in FY23 as against INR 238.7 Cr in FY22.

Zooming Into Expenses

MediBuddy’s total expenses jumped over 30% to INR 648.9 Cr in FY23 from INR 497.4 Cr in the previous year, with the cost of materials consumed being the single biggest contributor at 35%.

Cost Of Materials Consumed: The startup’s spending in this bucket increased 16.4% to INR 227.2 Cr during the year under review from INR 195.2 Cr in FY22.

Employee Benefit Expenses: MediBuddy’s employee costs surged over 90% to INR 135.1 Cr in FY23 from INR 70.9 Cr a year ago.

In that, the startup spent INR 115 Cr towards salaries and wages. Its employee share-based payment (equity settled) also increased to INR 13 Cr from INR 7.2 Cr in FY22.

It is pertinent to note that employee costs increased despite the startup undertaking a restructuring exercise. In January 2023, Inc42 exclusively reported about MediBuddy laying off around 200 employees across departments.

Advertising Promotional Expenses: The startup’s ad expenses declined over 4% to INR 114.5 Cr in FY23 from INR 119.5 Cr in the prior year.

MediBuddy, backed by the likes of Quadria Capital, Lightrock India, and Bessemer Venture Partners, last raised a funding of $18 Mn from its existing investors, a majority portion of which was to be used for strategic acquisitions and fortifying its offerings. 

MediBuddy was on an acquisition spree during the year under review. In February this year, it acquired the Indian business of US-based Aetna Inc, vHealth by Aetna, to expand its footprint. It also acquired rural India-focused online consultation platform Clinix in July last year.

MediBuddy competes with the likes of Practo, PharmEasy, and Pristyn Care.

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Online pharmacy major PharmEasy was the biggest underperformer in the Indian portfolio of investment giant Prosus during the first half (H1) of the financial year 2023-24 (FY24).

According to Prosus’ financial statements, PharmEasy had an internal rate of return (IRR) of -41% in H1 FY24. In fact, the online pharmacy major was the second-biggest underperformer in Prosus’ global portfolio, with only Skillsoft reporting a worse IRR during the period under review.

A shareholder presentation shared by Prosus revealed that it held a 13% stake in PharmEasy at the end of September 2023. It also showed that the investment giant increased its stake in the online pharmacy unicorn during the period under review. 

However, Prosus marked down PharmEasy’s valuation amid the startup’s financial troubles. 

“Another is a write down in PharmEasy of about $118 Mn and that’s really driven by the need for PharmEasy to raise money to settle debt. We actually participated in that round which expresses our confidence in the business going forward,” a Prosus spokesperson said.

The startup recently raised INR 3,500 Cr (around $424 Mn) in a rights issue, in which Prosus also participated. The rights issue was oversubscribed, according to PharmEasy cofounder Dhaval Shah.

PharmEasy was looking to settle a portion of its debt from the proceeds of the rights issue.

Beyond PharmEasy, edtech decacorn BYJU’S was another big underperformer for Prosus, having reported an IRR of -24% during the six month period ended September 2023.

Meanwhile, Prosus earned profitable returns from other Indian firms in its portfolio, including Swiggy, Eruditus, PayU India, Meesho and Elastic Run. Prosus reported a profitable IRR of 7% for Swiggy, and 22% for Eruditus. It also earned 30% positive returns from PayU India, 32% from Meesho, and 31% from Elastic Run in H1 FY24.

Overall, the investment major’s operating loss rose to $415 Mn in H1 FY24 from $329 Mn in the year-ago quarter. The company attributed the surge in loss to an impairment loss recognised with respect to edtech investments.

Earlier today, Prosus also slashed BYJU’S valuation down to under $3 Bn, more than 85% lower than the edtech giant’s peak valuation of $22 Bn it commanded during its last funding round.

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Healthtech unicorn PharmEasy has named Yatharth Bhargova as the new group CFO of its parent entity – API Holdings Private Limited. Sources privy to the development told Inc42 that Bhargova was appointed in September.

A resolution passed by the PharmEasy board in July appointing Bhargova as the CFO of the company, further confirms this development. 

Meanwhile, email queries sent to PharmEasy and Bhargova did not elicit any response until the time of publishing this story. 

Bhargova was earlier the CEO and CFO of OLX Autos’ Indonesia business. His span with OLX lasted for almost eight years. Before joining OLX, he was the head of finance at Healthkart and 1mg. 

His appointment comes almost a year after the exit of CV Ram, who was the group CFO of API Holdings. Ram left PharmEasy in October of 2022 and joined as the group CFO of Enterio Healthcare in January. 

After Ram’s Exit and until the appointment of Bhargova, Abhinav Jain and Milind Pattarkine took care of the group’s activities and reported to the PharmEasy founders directly. 

However, Abhinav, too, stepped down in October after serving PharmEasy for almost seven years. Following his exit, Yathartha was appointed as the new full-time group CFO.

The fresh appointment of Bhargova comes at a crucial time when PharmEasy is trying to repay its debt taken from Goldman Sachs. 

Earlier, PharmEasy 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 had taken to buy Thyrocare.

Ever since withdrawing its IPO papers in mid 2022, the company has been looking to raise capital. In July this year, the startup decided to raise capital through rights issues. Last month, cofounder Dhaval Shah claimed that PharmEasy’s recently conducted INR 3,500 Cr rights issue was oversubscribed.

“We raised INR 3,500 Cr and there was more demand which we had to politely reject. Every single shareholder stood up and supported us, believed in our vision and saw value in what the team at API is building,” Shah wrote on Linkedin.

The primary goal was to pay a significant portion of its outstanding to Goldman Sachs. According to previous reports, Temasek Holdings, CDPQ, LGT, and the Abu Dhabi sovereign wealth fund ADQ committed to investing INR 2,000 Cr in the epharma startup.

Besides, Ranjan Pai of Manipal Health Enterprises, who is now deemed the white knight for the startup ecosystem, is planning to invest INR 1,200 Cr in PharmEasy. 

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 has raised capital worth $1 Bn and counts names such as B Capital, Temasek, Eight Roads Ventures, Prosus, and Bessemer Venture Partners as its backers. 

PharmEasy’s consolidated revenue from operations grew to INR 5,729 Cr in FY22 from INR 2,235 Cr in FY21. Despite this, its losses shot up 4X YoY to INR 2,731 Cr. PharmEasy competes with the likes of Tata-owned 1mg, Practo, and Flipkart in the Indian healthtech space. 

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Bengaluru-based fitness and healthtech platform Ultrahuman has been sued by Finnish health wearable startup Oura for alleged patents and copyright infringements.

In a lawsuit filed in a district court in Texas in September this year, Oura alleged that Ultrahuman copied the former’s technology rather than innovating and developing its own products or features. 

“Ultrahuman’s efforts to copy Oura do not stop at infringement, but have extended to hiring former Oura employees, soliciting current Oura engineers, and potentially benefiting from some of its primary investors gaining access to Oura’s proprietary and confidential information before the launch of the Ultrahuman Ring,” the lawsuit alleged.

Founded in 2019 by Mohit Kumar and Vatsal Singhal, Ultrahuman develops various health tracking and monitoring devices, including fitness rings. In June this year, it launched a new version of its fitness wearable, the Ultrahuman Ring Air, for better sleep tracking, heart rate and body temperature monitoring, among other things.

Ultrahuman has also built a subscription-based fitness platform for better monitoring of the data the devices collect while also offering a range of workout content.

In August 2021, the startup raised $17.5 Mn in a Series B funding round from the likes of Steadview Capital, Alpha Wave Incubation, Nexus Venture Partners, Blume Ventures, and Utsav Somani’s iSeed fund. 

Founded in 2013, Finland-based Oura is one of the major names in developing smart rings.

Oura said in its lawsuit that the Ultrahuman Ring was intended to be an imitation of the Oura Ring in appearance, structure, and functionalities, and the similarities are not a mere coincidence.

“While Ultrahuman presents as an innovative startup, upon information and belief, Ultrahuman is funded in part by a sovereign wealth fund, supported by an investor who gained access to confidential and proprietary information on the Oura Ring in or around December of 2021,” Oura has alleged.

The Finnish fitness startup also claimed that the selected material used for the Ultrahuman Ring is the same as the Oura Ring, which includes durable titanium with non-allergenic and non-metallic inner moulding. This gave the Ultrahuman Ring an identical look and feel to the Oura Ring. 

It is pertinent to note that in the app-based fitness segment, Ultrahuman also competes with Indian startups like Delhi NCR-based Zivov and Bengaluru-based HealthifyMe.

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Healthtech startup HealthifyMe saw its total loss fall by around 10% during the year ended March 31, 2023 (FY23), driven by improving revenue.

In FY23, the healthtech startup reported a total loss of INR 142 Cr, down from INR 157 Cr reported in the previous financial year, the startup’s filings with the Ministry of Corporate Affairs (MCA) showed.

Meanwhile, HealthifyMe’s total revenue from operations went from INR 185.25 Cr in the year ended March 31, 2022, to INR 228.76 Cr during the period under review, witnessing a jump of 23.49% year-on-year (YoY). That was the highest-ever revenue posted by the healthtech startup.

Nutrition & Wellness Coaching Shines: HealthifyMe, which primarily offers dietary and nutritional coaching, along with wellness coaching, reported strong growth from the business vertical. In FY23, the revenue from nutrition and wellbeing coaching stood at INR 139.24 Cr, a nearly 25% increase from INR 111.62 Cr reported a year ago.

Support Services Beef Up The Top Line: Meanwhile, the startup reported a revenue of INR 74.11 Cr from ‘support services’, up around 3% from INR 72.10 Cr a year ago. While HealthifyMe did not specify the exact details of these ‘support services’, these could include revenue from its pro subscription plan and other services.

Opening New Revenue Stream With Products: Interestingly, HealthifyMe also reported product sales of INR 13.90 Cr during the year. That was the first time the startup ever reported product sales, including sales of its smart scale and the continuous glucose monitor (CGM).

What Hurt HealthifyMe’s Bottom Line During FY23?

The startup reported a total expenditure of INR 371.72 Cr during FY23, up 8.23% compared to the INR 343.44 Cr reported during the year-ago period.

Ad Spends Cut Significantly: In FY23, HealthifyMe spent INR 115.90 Cr on advertising and other promotional activities. That was 13% less than the INR 133.19 Cr it had spent during the last financial year, signalling a reduced dependency on advertising to attract new customers.

Employee Benefits Expenses Rise: Even though the healthtech startup fired 150 people in a layoff exercise in December 2022, it reported a 23.7% YoY increase in employee benefit expenses. HealthifyMe spent INR 116.09 Cr paying its employees in FY23, compared to INR 93.85 Cr in FY22.

Big Spending On Healthcare Consultants: HealthifyMe works with healthcare professionals to offer its services. The healthtech startup spent INR 79.23 Cr paying these professionals in FY23, down slightly from INR 80.25 Cr in FY22.

New Entries On The Accounting Book: HealthifyMe reported several new expenses during FY23, mostly related to its line of products launched during the year. For instance, the startup reported spending INR 3.13 Cr on delivery charges and INR 2.21 Cr on packing charges and other device costs.

Founded in 2012 by Tushar Vashisht, HealthifyMe’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.

The healthtech startup raised $30 Mn in its pre-Series D funding round in June this year, led by LeapFrog Investments and Khosla Ventures. The round also saw participation from new investors FinnFund and Van Lanschot Kempen. The startup has raised around $130 Mn across multiple rounds.

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In recent years, the healthcare industry has witnessed a significant transformation, largely attributed to the emergence of artificial intelligence (AI) and machine learning technologies. 

AI has undeniably made noteworthy strides in healthcare, particularly in diagnostic processes. AI-powered solutions have revolutionised disease identification and treatment by rapidly and accurately analysing medical images such as X-rays and CT scans. 

These innovations have led to improved diagnostic speed and accuracy, which, in turn, have the potential to enhance patient outcomes and reduce healthcare costs.

However, it is essential to acknowledge that AI’s impact extends beyond diagnostics and is not without its challenges. While AI-powered solutions have demonstrated capabilities in detecting diseases in asymptomatic patients, questions regarding accuracy and reliability must be considered. 

The deployment of AI in healthcare also raises concerns about data privacy, security, and the potential for bias in algorithms, which require ongoing scrutiny and safeguards.

Moreover, the transformative potential of AI in healthcare is not evenly distributed. In regions with disparities in healthcare access, AI can indeed help level the playing field, but the implementation of such technology must be carefully managed to ensure it reaches those who need it most. 

Role Of AI-Powered Tools

Recent case studies have shown that this is possible. AI-powered tools have reduced reporting times in smaller healthcare facilities with limited specialist resources. This innovation has had a positive impact on stroke care, emphasising the importance of timely diagnosis and intervention. 

Beyond regional boundaries, AI has shown promise in improving lung health globally. Collaborations between AI providers and healthcare organisations have resulted in innovative solutions for pulmonary diseases, contributing to the early detection of lung cancer and chronic obstructive pulmonary disease (COPD), among other conditions.

Globally, AI healthcare applications have made significant strides in streamlining patient information access for healthcare professionals, thereby facilitating more informed and efficient decision-making. Among the notable advancements, the integration of AI-driven electronic health records (EHRs) has had a profound impact on patient care and healthcare delivery efficiency.

Traditionally, accessing and retrieving patient information from paper-based records or older digital systems could be time-consuming and, at times, cumbersome. However, with the incorporation of AI into EHRs, healthcare providers now have at their disposal a powerful tool that not only digitizes and organises patient data but also augments their decision-making capabilities.

One of the key advantages of AI-driven EHRs is their ability to streamline the process of retrieving patient information. Through natural language processing (NLP) algorithms, these systems can swiftly interpret and extract relevant data from a patient’s medical history, test results, and treatment plans. This means that healthcare professionals no longer need to sift through extensive records manually, saving valuable time that can be redirected toward patient care.

Moreover, AI-powered EHRs offer real-time updates and alerts. These alerts can notify healthcare providers of critical changes in a patient’s condition or lab results, ensuring that healthcare teams remain well-informed and can respond promptly to emerging medical issues. This real-time monitoring and notification system can be particularly vital in emergency situations or when patients require rapid intervention.

Another advantage lies in the ability of AI to identify patterns and trends within patient data. By analyzing vast datasets, AI algorithms can identify correlations that might not be immediately apparent to human practitioners. This analytical capability can assist healthcare professionals in making more accurate diagnoses, predicting disease progression, and tailoring treatment plans to individual patients.

In personalised medicine, AI has the potential to revolutionise treatment approaches by analyzing vast datasets of patient information and genetic profiles. This can lead to tailored treatments, optimizing therapeutic outcomes, and minimizing potential side effects. 

In Conclusion

While AI undoubtedly offers tremendous potential to enhance healthcare, it’s important to recognise that its integration into the industry is an ongoing journey filled with both promise and complexity. 

The rapid advancements in AI technology raise questions about the need for ongoing training and education for healthcare professionals to effectively utilise these tools. 

Additionally, the ethical considerations surrounding AI, such as data privacy and algorithm biases, must be addressed vigilantly. Striking the right balance between innovation and safeguarding patient interests remains a key challenge. 

Nonetheless, as we navigate these challenges, AI’s transformative role in healthcare continues to evolve, offering exciting opportunities for improving patient care and healthcare practices.

The post AI Advancements In Healthcare: Promise, Progress And Pitfalls appeared first on Inc42 Media.

Healthtech unicorn PharmEasy’s recently conducted INR 3,500 Cr rights issue has been over-subscribed, claimed cofounder Dhaval Shah.

“We raised INR 3,500 Cr and there was more demand which we had to politely reject. Every single shareholder stood up and supported us, believed in our vision and saw value in what the team at API is building,” PharmEasy cofounder Dhaval Shah wrote on Linkedin.

However, Shah did not disclose the name of investors.

In August, PharmEasy’s plans for a rights issue came to light. The primary goal was to pay down a significant portion of its outstanding debt to Goldman Sachs. According to previous reports, Temasek Holdings, CDPQ, LGT, and the Abu Dhabi sovereign wealth fund ADQ had already committed to invest INR 2,000 Cr.

Furthermore, an expected investment of INR 1,200 Cr was anticipated from the family office of Manipal Health Enterprises founder Ranjan Pai. Smaller investors such as B Capital, Everstone Capital, and JM Financial were set to join the rights issue.

Previously, PharmEasy encountered a violation of its loan covenant conditions with Goldman Sachs, less than a year after obtaining the debt. Per the terms of the loan, the startup had committed to raising an equity fund of about INR 1,000 Cr ($120 Mn), a milestone it was unable to achieve.

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.

In November 2022, the company set a goal to achieve profitability by April 2023, without merely aiming to move “towards” profitability. Not only for a single month or quarter, but when the first six months of April to September 2023 were considered together, API achieved a cumulative EBIDTA of INR 60 Cr, Shah claimed in his LinkedIn post.

In FY22, PharmEasy’s consolidated revenue from operations grew to INR 5,729 Cr from INR 2,235 Cr in FY21. Its losses also shot up to INR 2,731 Cr in FY22 from INR 641 Cr in FY21.

Last year, PharmEasy decided to halt its initial public offering (IPO) plans till 2025 and had withdrawn the draft red herring prospectus (DRHP) it submitted to the Securities and Exchange Board of India (SEBI).

PharmEasy also grappled with valuation markdowns by two of its investors, Janus Henderson and Neuberger Berman. In response to financial difficulties, the company implemented workforce reductions. According to the Inc42 layoff tracker, the company has let go of nearly 500 employees since last year.

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Troubled healthtech startup Mojocare’s board has finalised plans to shut down operations and return remaining capital to investors. 

Sources told The Economic Times that a resolution was finalised by shareholders at the company’s board meeting earlier this month. As per the report, the remaining capital would be returned to the shareholders fully after resolving certain outstanding vendor payments. 

A group of investors is in talks with vendors to settle the matter. The healthtech startup was said to have around $12 Mn (INR 100 Cr) in its bank account as of June, a person familiar with the development told ET. 

In a major controversy that erupted earlier this year, Mojocare’s founders admitted before the board that they inflated revenues and fudged other numbers during internal presentations. 

Founded in 2020 by ex-Chiratae executive Ashwin Swaminathan and former Mobile Premier League vice-president Rajat Gupta, Mojocare is a digital wellness platform that operates in areas such as sexual wellness, women’s wellness, mental wellness and hair loss. 

Mojocare Implodes 

Mojocare raised $20.6 Mn (INR 160 Cr) as part of its Series A funding round led by B Capital in August 2022 amid deepening funding winter. 

As all major angel investors in the country, from CRED CEO Kunal Shah to Curefoods’ Ankit Nagori, lined up to invest in the startup, all eyes were on Mojocare as to how it would scale up in a space over-populated by startups such as Misters, Good Health Company, Sirona, Mosaic Wellness, and BoldCare. 

Despite the intense competition, Mojocare saw an explosive 38X year-on-year (YoY) revenue growth to INR 12.12 Cr in FY22 compared to a mere INR 32 Lakh in FY21. During the same period, total expenditure soared from INR 1.83 Cr in FY21 to INR 19.46 Cr in FY22, resulting in a net loss of INR 5.5 Cr in the year ended March 2022 compared to INR 1.1 Cr in FY21.

It is on the back of these numbers, including the connections of founders within the startup ecosystem, that helped Mojocare a big-ticket funding round last year. However, it was a previous audit undertaken into the company’s finances by Deloitte that uncovered the misreporting of revenues. 

Subsequently, in May 2023, the two cofounders confessed before the board that they doctored numbers by indulging in round-tripping of funds via inventory sold to relatives, creating fake invoices and inflating revenue. Eventually, both the founders were directed to step down, and a new CFO took over the reins of the company. 

In July, it was reported that a clutch of investors were mulling a fire sale while others were looking at shutting down the company and returning the capital. It seems that the board has sided with the latter. Besides, the financial forensic report by Deloitte also found that both Gupta and Swaminathan allegedly misled investors and the board by inflating revenue.

Mojocare has once again brought to the fore the dilapidated state of governance among Indian startups. In the past year, a slew of startups including names such as GoMechanic, Trell, Zilingo, BharatPe and Rahul Yadav’s 4B Networks have also been embroiled in similar controversies, including misappropriation of funds. 

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In the realm of Indian healthcare, a significant number of patients fall within the middle income bracket. Yet, accessing transparent, affordable healthcare remains a distant dream for them, especially when it comes to surgeries. Alternatively, a large portion of advanced healthcare facilities is concentrated in Tier 1 regions, leaving those beyond the metros underserved. 

Nevertheless, there is a silver lining as the country’s more than 3,548 active healthtech startups are trying to fix this anomaly. Armed with cutting-edge technology, apps and accessories, they work on providing access to quality healthcare to people from Tier II and III locations and beyond. 

One of the latest entrants in this space is Mykare Health, a Kerala-based healthtech startup connecting patients looking for affordable healthcare regions with small and mid-sized hospitals for affordable elective surgeries. 

For context, these procedures are planned well in advance (hence, they don’t cover medical emergencies, but they may not be optional, either). 

Mykare Health, has already raised $2.1 Mn in funding from a clutch of investors, currently operates in Chennai, Bengaluru, Coimbatore, Madurai, Hyderabad, Visakhapatnam, Mysore, Pune, Kochi and Thiruvananthapuram and has an aggressive growth plan in place to emerge profitable within two years, said founder and CEO Senu Sam.   

What sets it apart from its ilk, is its thorough understanding of the healthcare hurdles that the middle class encounters across Tier II and III regions. 

In fact, Sam comes from a Tier III village and knows firsthand the hopes and hardships of the people at the grassroots. His journey from humble beginnings to creating Mykare Health has helped shape the startup’s vision and goals.

In an interaction with Sam, we delved into Mykare Health’s impact on the healthcare landscape, the intricate challenges the CEO navigated to launch the startup and his leadership style that propels it forward. Here are the edited excerpts. 

Inc42: You took a leap of faith from corporate leadership to the startup space and set up your healthtech business. What drove you to do this? 

Senu Sam: It was a big leap, but I was driven by huge challenges. I worked my way up from a Tier III village (that’s the term he used throughout the interview to underline its remoteness) to become a vice-president at an Indian hospital. Yet, when my father had to be taken for a surgery in a small-medium hospital in Kerala due to travel restrictions imposed due to Covid, I became aware of the hurdles patients faced in non-metro cities.

The hospital had inadequate facilities, untrained staff, communication gaps and an unresponsive approach to treatment. The most challenging part was the absence of surgeon counselling, forcing my family to make critical decisions without expert guidance. Also, my father received vague recovery instructions post-surgery, hindering his healing process.

Worse still, most hospitals lacked a comprehensive insurance process and the final bill rarely matched initial estimates. 

All these exposed the widespread healthcare issues in small and medium hospitals in India. I felt I had to address them and eventually I left my corporate role and moved to Kerala to launch Mykare Health in 2022. Our mission is to improve transparency and efficiency in healthcare delivery for the middle class in India. 

Inc42: As an entrepreneur-founder from a non-metro, what barriers did you face and how did you tackle them? 

Senu Sam: Entrepreneur is a fancy term in villages and the ecosystem is limited. People there focus on education and stable jobs to deal with financial hurdles. It does not mean they don’t have ambitions. However, most entrepreneurs fail due to a lack of awareness and financial resources.

It also took me 12 years to understand these challenges. I started my journey by saving my earnings and financial freedom came only after those years. While doing my post-graduation in Education, I realised that Apollo Hospitals would be one of the best workplaces. So, I joined and worked my way up to an executive role. But they were all deliberate steps to realise my vision. I kept moving forward, dealing with one challenge at a time. 

I liked my cushy corporate job but decided to leave my comfort zone and teamed up with a doctor in Hyderabad to run a fertility centre. So, Mykare Health is not my first venture. Eventually, I started it after looking at the ground-level issues in healthcare. I also know there will be numerous challenges to conquer in the next five to 10 years before fully achieving my goals. However, I also believe that entrepreneurship is an ongoing journey which could take an entrepreneur 50 years to overcome ongoing challenges.

Inc42: Can you tell us how your background and experiences shaped your decision-making and leadership style?

Senu Sam: My past experiences have deeply influenced how I work. I had struggled financially and often pawned or sold the little gold my family had to fund my education. And I vividly remember the hardships I faced while securing a job at Apollo in Delhi. When I travelled to Delhi for an interview, I just had INR 5,000 with me and no place to stay. Plus, I had to learn English to break the language barrier. Those were hard times, but I found purpose in my struggle, leading me to the point where I could start my venture.

I never forgot what I learnt in those days. So, I have fostered a culture of freedom and responsibility at Mykare Health and always respect what my team members are thinking. Colleagues who embrace this collaborative culture go above and beyond, and their dedication brings me the greatest joy. All of us are committed to Mykare Health’s vision and that’s the kind of leadership we are nurturing.   

Inc42: What were the biggest challenges you faced as a first-generation entrepreneur?

Senu Sam: There were plenty. I didn’t know how to create a pitch, set up a company or put together a team. These things hit me hard until I realised there wouldn’t be anyone to guide me and I must take the initiative to resolve these issues. At first, I was looking for mentors or some kind of handholding to help me navigate the challenges of starting a company. But it does not work that way. One has to hit the ground running. 

Generally speaking, for a first-time entrepreneur challenges also include onboarding a cofounder, finding a skilled chartered accountant for startup registration and financial projections, and connecting with incubators for financial assistance and mentorship.

Inc42: Is it easier to start up in small cities/towns nowadays? Do we see enough opportunities for incubation, mentoring and funding? What about your experience as an early-stage startup incubated at the Kerala Startup Mission (KSUM)?

Senu Sam: Institutions like KSUM (Kerala Startup Mission) and other state startup missions are actively reaching out to startups at the grassroots and the Indian government’s startup mission is no different. Their approach is commendable and the startup ecosystem has undergone a remarkable transformation in the past four years. 

But founders, too, need to understand their pivotal role in this process. They should proactively engage with mission desks, attend events and take part in mission programmes, regardless of the event’s size or scale. Such active involvement will enhance their industry knowledge and help build their companies.

What I mean to say is founders can’t afford to sit back and wait for a startup mission to come knocking on the door. The resources and support systems, including measures by state ministries, are readily available. But founders must take the initiative and reach out.

Inc42: What’s next on the cards in Mykare Health’s growth playbook after scaling the network of partner hospitals to 500+ in a year’s time?

Senu Sam: Our playbook is pretty straightforward – it is all about aggressive growth with profitability. We are in a critical space that involves patients and a network of standardised hospitals delivering quality healthcare at affordable cost. But we are dealing in surgical procedures and these do not typically lead to repeat customers. Even then, we have identified key performance indicators for every surgery and meet those criteria to ensure profitability and exceptional customer experience. 

Additionally, we have surpassed most of our competitors in various performance metrics on customer experience, quality care and standards, cash positive unit economics. This, too, helps us push profitability and achieve our mission. It has also led to successful partnerships with more than 100+ hospitals in just one year. Based on our projections, we are confident Mykare Health will be profitable within two years. 

Again, none of this would have been possible without the support of our investors like OnDeck ODX – US, Avaana Seed, Huddle, Endurance Capital, F Health, Stanford Angels and Phoenix Angels, who share our vision and strive to make it a reality. To date, we have raised $2.1 Mn from our investors.

Inc42: Mykare Health has a strong presence in small cities and towns throughout southern India. What are the specific challenges when you cater to Tier II and III consumers?

Senu Sam: First, it’s the language barrier. People residing in those areas prefer speaking their local language (in Kerala, Malayalam) rather than English. So, one has to offer products and services in the local language.

Next, comes the communication style. People there respond better to a friendly, informal approach instead of formal communication. It’s like making a new friend. You need to build a personal connection to earn their trust.

Another key challenge is the absence of user-friendly digital platforms. Middle income class or Tier II and III consumers prefer simple, easy-to-use platforms like WhatsApp, YouTube and Facebook because these are straightforward and don’t require much technical knowledge.

Finally, these people are price-conscious. They expect good value for their money, which means first-rate experience and convenience. For example, my father prefers to buy milk from the local stall because it’s part of his daily routine and social life. So, if you want to do business there, you must offer great service at a reasonable price.

Inc42: Can startups from non-metros drive innovation in the healthcare space? 

Senu Sam: Yes, they can definitely play a crucial role, as the potential is immense and there is significant room for growth. Most Indians reside in these areas, but we have only reached about 1% of this population. To meet the scale of the challenge, more businesses and individuals must find solutions across this critical field. For example, they can invest in data analytics and AI-driven solutions, leverage existing healthcare data to identify trends, allocate resources efficiently, and predict disease outbreaks. These solutions can significantly enhance the quality of care and response to healthcare needs in these areas. However, healthcare technology needs to be both innovative and financially viable.

Inc42: What’s your advice for potential founders keen to start up?

Senu Sam: Keep moving forward. Strive to enhance your product/service every day and focus on being better tomorrow than you are today. One must aim for continuous improvement to win this race. Also, young entrepreneurs should carefully seek guidance and partnerships to avoid unproductive or self-serving arrangements.

Secondly, understand that everything in the startup world takes time. Don’t be disheartened if you don’t get immediate results. Patience is your ally.

Finally, immerse yourself in the ecosystem to succeed. Forge connections with fellow entrepreneurs; participate in relevant conferences; listen to podcasts; watch informative videos and read industry-specific materials to stay ahead.

The post Startups From Tier II & III Cities To Drive Innovation In India’s Healthcare Space: Mykare Health’s Senu Sam appeared first on Inc42 Media.

The union health ministry has asserted that the possession of e-cigarettes in any form, quantity, or manner is in direct violation of the Prohibition of Electronic Cigarettes Act (PECA), 2019.

In a clarification issued to the Ministry of Civil Aviation (MCA) last month, the health ministry called for strict enforcement of the ban on e-cigarettes, news agency PTI reported.

Although PECA does not explicitly mention the prohibition of individual e-cigarette use, the law is designed to comprehensively prohibit all aspects of these products, the ministry said. This includes production, manufacturing, import, export, transport, sale, distribution, storage, and advertisement of e-cigarettes.

“Therefore, possession of e-cigarette within the country in any quantity is not possible without contravening the provisions of PECA, 2019,” said Dr Pulkesh Kumar, deputy secretary in the Ministry of Health.

The ban under PECA 2019 extends to include all types of electronic nicotine delivery systems, heat not burn products, e-hookah, and similar devices. The legislation was enacted with the primary objective of safeguarding public health and ensuring protection from potential harm, the health ministry said.

It must be noted that e-cigarettes continue to be readily accessible through various channels, including tobacco vendors, general stores, and online retailers despite being prohibited.

Earlier in July, the health ministry sent notices to 15 websites for selling e-cigarettes. The websites were asked to immediately cease all advertisements and sales of e-cigarette.

It was then reported that six more websites were under the lens of the ministry, while it was also monitoring advertising and sale of e-cigarettes on social media platforms.

PECA came into effect in 2019.

The health ministry has raised concerns over availability of e-cigarettes in the past as well. In February this year, it wrote to all states and Union Territories highlighting concerns over the availability of e-cigarettes through local vendors.

Later in May, it also issued a notice directing producers, manufacturers, importers, exporters, distributors, advertisers, transporters, social media websites, and online shopping platforms to refrain from producing, procuring, or selling e-cigarettes directly or indirectly.

The post Possession Of E-Cigarettes Is A Violation Of Law, Says Health Ministry appeared first on Inc42 Media.

Linen management startup Quick Smart Wash (QSW) has raised $5.15 Mn funding from Japan-based Elan Corporation. 

In a statement, QSW said that the latest funding will help the startup to expand its capacity to almost 55 tonnes (1,65,000) per day from 35 tonnes (1,00,000 clothes) per day.

Founded in 2013 by Rakesh Sharma, QSW offers self-service laundry and linen management to healthcare and hospitality industries. The startup claims it leverages high-end technology and services which help prevent healthcare-associated infections, a major health concern across hospitals. 

Commenting on the fund raise, founder Sharma said the partnership with Elan will further augment QSW’s strength in the areas of research and development, especially in catching future trends and delivering high and affordable quality services.

QSW is currently present across Jaipur, Manipal, Udupi, Delhi NCR, Hyderabad, Bengaluru, Jalandhar, and Amritsar. In the current fiscal year, the startup is planning to set up units in Kochi, Kannur, Chennai, and Ahmedabad, reaching 9 states across the country. 

QSW plans to further expand its services across India and enter at least 15 states in the coming years. It plans to capture a 10% share of the hospital linen management sector and increase its linen management capabilities to 200 tons a day. 

A study by Statista found that the Indian laundry care market value stood $5.46 Bn in 2023 which is expected to grow at 4.18% CAGR by 2028. As a result, the sector has been receiving a lot of interest from entrepreneurs and investors.

Laundry startup LaundryMate, cofounded by former BigBasket cofounder Abhinay Choudhari, raised $6.25 Mn in Pre-Series A funding from Blume Founders Fund and others earlier this year. 

Other than LaundryMate, QSW competes with Laundrywala, UClean and LaundryAnna.

The post Quick Smart Wash Bags $5.15 Mn To Offer Laundry Services To Healthcare, Hospitality Industries appeared first on Inc42 Media.

Healthtech SaaS startup Doceree has raised $35 Mn in its Series B funding round led by Creageis. The round also saw participation from existing investors Eight Roads Ventures, and F-Prime Capital. 

In a statement, the startup said it would utilise the fresh capital to accelerate product development, augment technologies, scale global expansion and increase employee headcount. 

Founded by Harshit Jain and Daleep Manhas in 2018, Doceree claims to simplify marketing for pharma and medical devices companies. The startup provides a platform for healthcare professionals (HCP) for programmatic messaging with data proprietary tools. This platform allows messaging between life sciences brands and HCPs through a global network of digital endemic and point-of-care platforms to programmatically deliver personalised communications to HCPs at scale. 

After offering its solutions in the US, India, and the European markets, Doceree has now expanded its operations to Africa, Southeast Asia, and the Gulf Cooperation Council (GCC). 

The startup said that a line-up of smart and connected solutions from Doceree’s product portfolio are awaiting launch in the months to come. It claimed these products will bring a transformational change to the entire ecosystem globally. 

Earlier, the startup raised $11 Mn in its Series A funding round, led by Eight Roads Ventures, in April last year. F-Prime Capital and Alkemi Growth Capital also participated in the round.

“Given we are a technology-driven platform, we will further invest on artificial intelligence and machine learning technologies to make the product even more intelligent,” Jain then told Inc42. 

Doceree has developed an identity resolution proprietary technology platform called ESPYIAN, which helps create a database of verified and authentic medical and healthcare professionals.  

Creagis, which led Doceree’s latest funding round, announced the final close of its maiden $425 Mn (INR 3,529 Cr) fund last week to invest in homegrown startups. 

The post Healthcare Professional Focused SaaS Startup Doceree Raises $35 Mn From Creaegis, Others appeared first on Inc42 Media.

As technology continues to permeate every aspect of our lives, a new era dawns upon the healthcare landscape of India. With a burgeoning population and evolving medical challenges, the nation is at the foothills of a healthcare revolution.

At the heart of this transformation stands artificial intelligence (AI), which has the potential to reimagine the way healthcare is delivered, accessed, and managed across the subcontinent.

AI In Healthcare: The Catalyst For Change

With its ability to analyse vast amounts of data and extract meaningful insights, here are some key areas where AI has the potential to make a significant impact on the future of healthcare in India:

Diagnostics

Unencumbered by traditional limitations such as human error and subjectivity, AI algorithms can analyse medical records, images, and genetic data to identify patterns and markers that might indicate the presence of diseases at an early stage.

This can lead to timely interventions and improved outcomes. For instance, AI-enabled tools can detect anomalies in medical imaging, aiding radiologists in the early diagnosis of conditions such as cancer or heart disease.

Predictive Analytics

By inferring vast amounts of data from demographic electronic health records, wearable devices, and even social media, AI can identify trends that might indicate an outbreak of diseases or the prevalence of certain health conditions. This early warning system equips healthcare authorities to respond proactively, potentially preventing the spread of diseases and saving countless lives.

Personalised Treatment

Every individual’s genetic makeup and health history are unique. By analysing genetic data, AI can identify genetic mutations that may predispose individuals to certain diseases. This combined with other patient data, including medical history and lifestyle factors, can help create personalised treatment plans to yield results that are more effective and tailored to an individual’s specific needs.

This approach would enhance the efficacy of medical interventions and minimise adverse effects, resulting in more patient-centric care.

Telemedicine

The COVID-19 pandemic accelerated the adoption of telemedicine, and AI is enhancing this shift. AI virtual health assistants can interact with patients, answer their queries, and even monitor vital signs remotely, ensuring continuous care without the need for long and arduous journeys to urban health centres.

This democratisation of medical expertise has the potential to save lives, especially in cases where timely intervention is critical.

Drug Discovery

Drug discovery is traditionally a time-consuming and resource-intensive process. AI algorithms can significantly expedite the drug discovery process by analysing vast databases of molecular structures by simulating the interaction between molecules and predicting potential drug candidates for new therapies. 

Resource Optimisation

AI can optimise resource allocation within healthcare facilities, forecasting patient admissions, identifying peak usage times, and streamlining staff scheduling. This not only enhances operational efficiency but also ensures better utilisation of limited resources whilst delivering patient satisfaction and reducing the strain on hospital staff.

Wearables

Wearable devices equipped with AI can continuously monitor health parameters such as heart rate, blood pressure, and sleep patterns. These devices provide users with real-time insights into their health, enabling a more proactive approach to their well-being.

AI In Healthcare: Key Challenges

Concerns around data privacy and security are paramount when dealing with sensitive medical information. Striking a balance between harnessing data for medical advancements and safeguarding patient confidentiality is a delicate task that requires stringent regulations and robust cybersecurity measures.

As AI algorithms become integral to clinical decision-making, concerns about accountability in case of errors, transparency in algorithmic decision-making, and potential biases embedded in the data used to train these algorithms, must be addressed.

There is also a need to strike a balance between the role of AI and the human touch in healthcare. While AI can enhance efficiency and accuracy, the empathy and intuition that human healthcare providers bring to the table cannot be replaced by technology.

The Path Ahead: Collaborative Transformation

To harness the full potential of AI, we will need to invest in technological infrastructure, especially in rural and underserved areas, and skill development; define and update regulatory standards for AI in healthcare; and educate the public about AI to allay anxieties around it. 

The integration of AI into healthcare necessitates a shift in roles, where doctors and nurses become adept at working alongside intelligent systems. Developing indigenous algorithms tailored to local medical nuances and bolstering data security through stringent measures will ensure patient trust and privacy. 

Equipping professionals with AI knowledge creates a skilled healthcare workforce, and nurturing startups drives innovation. These steps put the country on the path of achieving technological sovereignty in this field. 

In conclusion, through collaborative efforts and visionary leadership, India has the potential to shape a healthcare landscape that not only meets the challenges and needs of its diverse population but also sets a precedent for the world.

The post Healing Tomorrow: India’s AI Revolution In Healthcare appeared first on Inc42 Media.

Personal hygiene brand Pee Safe has raised $3 Mn as part of its $6 Mn Series B funding round. The funding round has been led by Natco Pharma and Zerodha founders Nithin and Nikhil Kamath led Rainmatter Health. Pee Safe’s existing investors, like Alkemi Growth Capital, also participated in this round of funding.

Owned by Redcliffe Hygiene, Pee Safe was launched in 2013 by Srijana Bagaria, and Vikas Bagaria. Later it elevated Rithish Kumar as one of its cofounders. 

Pee Safe was primarily launched as a toilet seat sanitiser aimed at addressing the pain points, especially urinary tract infections, faced by women across age groups while using public toilets. Later, it expanded its offerings to include products centred around hygiene, menstrual care, and grooming.

Pee Safe products are available at 15,000 physical retail stores across 70+ cities in India, ecommerce marketplaces, and its own website. The D2C brand claims to be exporting products to over 20 countries in 5 continents.

The funds will be used to expand its retail presence in India, expand overseas with an omnichannel approach and allocate additional resources to marketing and awareness initiatives. 

Commenting on the utility of the funding for the company, Bagaria said, “This funding will accelerate our expansion efforts and establish us as the leading brand in the rapidly growing intimate wellness sector, which boasts a remarkable CAGR of 16%. Over the past five years, Pee Safe has achieved a remarkable growth rate of 100% CAGR, surpassing market expectations.”

Pee Safe claims to have served over 6 Mn customers. It further said that it has impacted the lives of 200K menstruators from underprivileged backgrounds through awareness drives and donated over a million menstrual care products.

In 2021, the company raised funding of INR 25 Cr in a Pre-Series B round led by entrepreneur and investor Shaival Desai to expand its product range. 

In the toilet seat sanitiser segment, it competes directly with Safekind, a Mankind product. In other segments catering to menstrual health, it competes with the likes of i-active by Piramal, Wellify, Azah, Sirona, etc. 

The post Intimate Hygiene Brand Pee Safe Secures Funding To Expand Retail Presence appeared first on Inc42 Media.

Mental health platform LISSUN has raised $1.3 Mn in a seed funding round led by Inflection Point Ventures (IPV) & Rainmatter Capital. The round also saw participation from existing investors including IvyCap Ventures, WFC, GrowX Ventures and angel investors. 

Founded in 2021 by Krishna Veer Singh and Tarun Gupta, the Gurugram-based startup aims to address contemporary mental health issues by offering expert guidance, therapies, and comprehensive solutions for emotional and mental well-being.

LISSUN provides a full spectrum of mental health care, utilising technology for self-diagnosis and offering holistic treatments for patients. Commenting on the funding, cofounder Singh stated, “This investment validates LISSUN’s innovative approach to scalable solutions in the mental health sector.”

Singh further noted that the fresh capital will accelerate LISSUN’s journey toward fulfilling its vision of large-scale mental health solutions, ensuring accessibility for all in need. 

The funding will be used to enhance technological innovation, improve product offerings, introduce new services, and forge partnerships with healthcare institutions and other organisations.

The latest investment brings LISSUN’s total funding to $2.3 Mn. Currently, the startup has reach in over 40 cities in India and has recently launched a child healthcare program called ‘Sunshine by LISSUN.’

The startup aims to leverage the Business to Healthcare to Consumer (B2H2C) strategy, partnering with healthcare institutions to effectively address high-stress medical conditions including infertility, rehabilitation, nephrology, and oncology.

A study by UnivDatos Market Insights predicts that the Indian mental healthcare industry will grow at a CAGR of 15% from 2022 to 2028. Although the industry is still in its nascent stage, with societal taboos impacting its growth, more people are beginning to seek help.

Last month, actor and investor Suniel Shetty joined Manun Thakur, the founder and CEO of Veda Rehabilitation & Wellness, to launch a mental health app, Lets Get Happi, that will offer  24×7 access to real-time therapy. 

Last year, another mental healthcare startup Wysa bagged $20 Mn in its Series B funding round to venture into the markets of the US, UK, and other international markets, and further offer its services in vernacular languages.

The post LISSUN Bags Funding To Offer Full-Stack Emotional & Mental Health Solutions appeared first on Inc42 Media.

Bengaluru-based healthtech startup MediBuddy has raised an additional funding of $18 Mn from its existing investors Quadria Capital, Lightrock, and TEAMFund for expansion through strategic acquisitions.

The latest round comes more than a year after the startup raised $125 Mn in its Series C round in February last year. 

MediBuddy said the latest funding puts it in a “solid position” to navigate the current landscape and achieve its ambitious growth targets over the next three years.

A “formidable portion” of these funds will be channelled into strategic acquisitions and fortifying existing offerings, enabling exponential growth, the startup said in a statement.

“MediBuddy’s growth trajectory has consistently achieved a Compound Annual Growth Rate (CAGR) of 95.5% over the past three years. The additional funds will be critical in driving our strategic acquisition initiatives, further expanding our reach, and enhancing the depth and breadth of our services,” said Satish Kannan, cofounder and CEO of MediBuddy.

In February this year, the startup acquired vHealth by Aetna, the Indian business of US-based Aetna Inc, to expand its geographical footprint.

Prior to that, in July last year, MediBuddy acquired rural India-focused online consultation platform Clinix.

In its statement today, the startup said that both strategic acquisitions have further amplified its presence in the healthcare domain.

However, amid its aggressive growth plans, MediBuddy also took the layoff route earlier this year. Inc42 exclusively reported in January that the telemedicine startup laid off around 200 employees across departments.

The startup had attributed the restructuring exercise to re-alignment with its long-term stability and growth goals.

Founded in 2015 by Kannan and Enbasekar Dinadayalane, MediBuddy offers video consultations with doctors, surgicare consultations, and allows customers to book lab tests and order medicines. It claims to have a network of over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres, and 2,500 pharmacies covering 96% of pin-codes in India. 

MediBuddy claims to currently have a customer base of over 3 Cr Indians. The startup said its recent growth has been fuelled by its presence in both corporate and retail domains. 

While the healthtech ecosystem has been one of the worst-hit due to the ongoing funding winter, the Indian healthtech market is expected to reach a size of $25 Bn by 2025, as per a report by LoEstro Advisors.

The post MediBuddy Raises $18 Mn From Quadria, Lightrock, TEAMFund For Acquisitions appeared first on Inc42 Media.

The Delhi High Court has granted the Centre an extension of another six weeks to finalise and inform the court about its stance on draft epharmacy regulations.

The bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula, while hearing petitions seeking ban on sale of online drugs and against the 2018 draft rules released by the Ministry of Health and Family Welfare (MoHFW), said that the pending cases should not come in the way of the Centre taking steps against those violating the HC’s December 2018 order, news agency PTI reported.

The HC had in 2018 ordered a stay on online pharmacies selling drugs without valid licences.

Appearing for the government, Advocate Kirtiman Singh informed the court that deliberations on the draft regulations are still ongoing. 

Consequently, the court gave the Centre an additional time of another six weeks to inform it about the outcome of the consultations and deliberations and the final stand of the government.

The MoHFW in 2018 issued draft amendments to the Drugs and Cosmetics Rules, 1945 to regulate online sales of drugs. The ministry sought comments and suggestions on the rules, but the regulations have not been finalised yet. 

At the heart of the matter are two petitions. While the South Chemists and Distributors Association’s plea has challenged the ministry’s draft notification, another petition by pharmacist Zaheer Ahmed has sought contempt action against pharmacies for selling drugs online in violation of the court’s order.

Ahmed’s petition also seeks contempt action against the government for failing to ban unregulated online epharmacies. 

It must be noted that the Drugs Controller General of India (DCGI) recently conducted fresh consultations on draft regulations for epharmacies with industry stakeholders. The meeting was attended by the All India Organization of Chemists and Druggists (AIOCD), representatives from the Pharmacy Council of India, and online pharmacy platforms, including Tata 1mg, PharmEasy, Netmed, and Practo. 

The development came after the Delhi HC asked the government to take necessary actions against epharmacies. 

Earlier in February, the DCGI sent show cause notices to 20 epharmacies, including Tata 1mg, Amazon, and Flipkart, for selling and distributing drugs in contravention of provisions of the Drugs and Cosmetics Act, 1940. 

However, defending themselves, officials of the epharmacies reportedly approached the DCGI seeking an audience with the health ministry to clarify their position. 

Last year, the Centre also came out with the draft New Drugs, Medical Devices and Cosmetics Bill, 2022, which sought to bring epharmacies under its ambit. However, the health ministry is now working on a revised draft of the bill and has also sought inputs from other departments.

The post Delhi HC Grants Centre 6 More Weeks To Finalise Stance On Draft Epharmacy Rules appeared first on Inc42 Media.

PharmEasy is set to pay $100 Mn – $150 Mn of the $300 Mn debt to Goldman Sachs from the proceeds of the expected rights issue next week. 

The investment bank is also considering converting around $38 Mn – $40 Mn of the debt into equity at the $424 Mn (INR 3,500 Cr) rights issue. The rights issue will likely value PharmEasy at $500 Mn – $600 Mn, significantly below its peak valuation of $5.6 Bn.

In light of binding commitments from existing investors for the upcoming rights issue, PharmEasy is renegotiating its debt terms with Goldman, aiming for a reduced interest rate on the outstanding loan amount, ET reported, citing sources.

“The rights issue is slated to start September 4, and based on a commitment from existing investors, the cash position of the firm is looking better than six months ago. This has led to the (discussions about) restructuring debt terms and conversion to equity,” one person aware of the talks told the publication.

It is also likely that the payout to Goldman Sachs could reach $200 Mn, given that Manipal Group chairman Ranjan Pai is also interested in investing in the startup.

Pai is expected to invest up to $160 Mn (INR 1,300 Cr) in the epharmacy unicorn, contingent on the amount invested by existing shareholders such as Temasek, Prosus Ventures and CDPQ, who are likely to lead the rights issue.

PharmEasy raised the debt to settle an existing debt it secured from Kotak Mahindra Bank for financing the Thyrocare acquisition in 2021. The loan was structured as a five-year agreement with an annual interest rate of 17-18%.

Goldman Sachs had set a covenant in the loan agreement, which mandated the epharmacy unicorn to raise INR 1,000 Cr ($120 Mn) in funding within a year of raising the debt. The failure to do so triggered a breach of covenant in June this year.

PharmEasy is likely to pay back the remaining debt by March 2025.

The post PharmEasy To Restructure $300 Mn Goldman Debt, Might Convert Some Part Into Equity appeared first on Inc42 Media.

In recent years, the healthcare industry has witnessed an explosion of startups promising innovative solutions to revolutionise patient care, improve accessibility, and reduce costs. However, amid the buzz and excitement, many of these ventures failed to achieve their goals.

The reasons behind the downfall of these healthcare startups are multifaceted, but a critical analysis reveals common mistakes that can serve as valuable lessons for entrepreneurs and investors alike.

Typical Mistakes Healthcare Startups Make

While technology has the potential to transform healthcare, some startups have fallen into the trap of developing solutions solely for the sake of innovation, rather than addressing the needs of patients, providers and payers. 

Ignoring user-centric design principles and failing to conduct comprehensive market research often results in products and services that fail to gain traction or align with existing workflows, hindering adoption and scalability.

Healthcare startups also fail to comprehend the complexity of the industry and neglect establishing partnerships with established healthcare providers, regulatory bodies and medical professionals. Ignoring the valuable insights these stakeholders bring to the table often leads to a disconnect between the startup’s vision and the realities of healthcare delivery, resulting in unsustainable business models.

Further, many healthcare startups rely heavily on venture funding while innovating endlessly, without a clear path to profitability. Such startups struggle to identify and implement viable revenue models and are at a high risk of capitulating. Sustainable business models should consider factors such as reimbursement mechanisms, pricing structures and strategic partnerships to ensure long-term viability.

Healthcare is also a highly regulated industry and startups must navigate the complex legal frameworks to ensure compliance with privacy, security and data protection regulations. Neglecting these crucial aspects can lead to significant setbacks, loss of trust and even legal ramifications.

Further, ethical considerations, such as maintaining patient confidentiality, respecting consent and ensuring equitable access, must be ingrained in the startup’s core values.

Bouncing Back From Failure

The rise and fall of healthtech startups can be put down to any number of mistakes, but the lessons derived from these failures are invaluable. Entrepreneurs and investors must understand the intricacies of the healthcare industry, collaborate with established stakeholders and prioritise user needs and market research.

By doing so, they can foster a culture of innovation and build startups that truly transform healthcare, benefiting patients, providers, and the industry. The future of healthcare entrepreneurship depends on our ability to acknowledge past failures and embrace a more informed, collaborative and user-centric approach to building and scaling startups in the healthcare landscape.

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Amid serious financial troubles, healthtech unicorn PharmEasy will raise INR 3,500 Cr through a rights issue next week to repay a large portion of its debt to Goldman Sachs.

The troubled healthtech startup has received a commitment of INR 2,000 Cr from Temasek Holdings, CDPQ, LGT, Abu Dhabi sovereign wealth fund ADQ, among others, Mint reported.

Moreover, PharmEasy is likely to get INR 1,200 Cr investment from Manipal Health Enterprises founder Ranjan Pai’s family office.

Once the right issue opens next week, a few small investors, such as B Capital, Everstone Capital, and JM Financial, will confirm their participation in the round.

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 multiple subsidiaries.

The startup has so far raised more than $1.5 Bn across multiple rounds.

Last month, API Holdings, the parent entity of debt-laden PharmEasy, decided to raise INR 2,000 Cr-INR 3,000 Cr via a rights issue, during an all-investor meeting. The company also approved a proposal by the Manipal Group to invest any shortfall amount if all investors do not end up participating in the rights issue.

Earlier, PharmEasy 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 had taken to buy Thyrocare.

Amid its many troubles, PharmEasy also faced valuation markdowns by two of its investors — Janus Henderson and Neuberger Berman, respectively. Facing financial troubles, the company also resorted to layoffs. According to the Inc42 layoff tracker, it has laid off close to 500 employees since last year.

In FY22, PharmEasy’s consolidated revenue from operations grew to INR 5,729 Cr from INR 2,235 Cr in FY21. Its losses also shot up to INR 2,731 Cr in FY22 from INR 641 Cr in FY21.

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If there is one thing besides the investor dry powder that has fuelled the growth of the world’s third-largest startup economy, it is, without a doubt, consolidations, which have happened in the ecosystem over the last decade or so.

Embarking on their respective merger and acquisition (M&A) journeys, Indian startups have not only entered new markets but also fostered new technologies and widened their access to newer and bigger TAMs (total addressable markets). In this race to grow at a break-neck speed, bolstered by hand-holding, joint ventures, or even acquiring and merging with peers and rivals, Indian unicorns, too, seem to have aced the M&A game.

Consider this: Between 2014 and 2023, the Indian startup ecosystem witnessed 1.2K acquisitions by Indian startups. Of these, 110 unicorns led over 400-plus acquisitions, according to Inc42’s latest report on ‘Decoding India’s Unicorn Club’.

Further, of the total 110 unicorns in India, as of August 10, 2023, ecommerce unicorns have spearheaded the maximum acquisitions. In ecommerce, rollup unicorns together acquired more than 40 firms. In edtech too, BYJU’S and Unacademy acquired 30 companies – accounting for more than half of total M&As in the sector.

Cure.Fit, BYJU’S Lead The M&A Graph

Interestingly, 33% of the total acquisitions in the country’s startup space have been led by a handful of unicorns, with Cure.Fit, a fitness and health platform, at the helm.

Cure.Fit was launched in 2016, following the acquisition of two Bengaluru-based fitness studios, Cult and Tribe. Today, the unicorn has acquired a total of 28 startups.

Other prominent names leading the M&A charts are Mensa Brands with 21 acquisitions, Flipkart with 19 acquisitions, BYJU’S at 18, and Zomato and GlobalBees at 16 acquisitions each.

In terms of individual (disclosed) deal value, BYJU’S is an undisputed winner. Four of its biggest acquisitions include Aakash Educational Services Limited (at $1 Bn), Great Learning (at $600 Mn), Epic (at $500 Mn), and WhiteHat Jr (at $400 Mn).

The Saga Of Shaky Acquisitions

While acquisitions are certainly a great strategy for growth and scale, it can also create issues for a company. Overvaluation, incompatible cultures, failure to realise synergies, regulatory challenges as well as unrealistic expectations in terms of growth can put the acquirer company at risk.

For instance, BYJU’S acquisition spree has backfired by multiple degrees, and the company has been at a crossroads for the last two years. The edtech is already contemplating shutting down Whitehat Jr, while Aakash Educational Services Limited (AESL) has been cornered in a legal battle.

Similarly, Snapdeal acquired fintech startup Freecharge in 2015 for an estimated $400 Mn. However, as the talks regarding its merger with Flipkart failed to take off, the company sold the digital payment app to Axis Bank for mere $60 Mn in July 2017.

Another unicorn Unacademy, too, has experienced a series of downturns since it embarked on its acquisition journey in 2020. The Bengaluru-based company acquired more than ten startups, including Rheo TV, PrepLadder, Mastree, Spayee, CodeChef, SwifLearn, Kreatryx, and TapChief, and launched an array of products to serve the edtech space.

However, its journey is now fraught with challenges, be it exiting the K-12 segment, layoffs, or even unwinding its US operations, subjecting the company to some of the most turbulent times since its inception in 2015.

What’s Next?

With the ongoing funding winter and markets undergoing corrections, the overall M&A trend is expected to accelerate further in the Indian startup ecosystem.

With examples like Zomato turning profitable, it is anticipated that more unicorns will emerge in the black, triggered by a wave of M&A deals. Looking at the profitable ones, many other unicorns may find themselves on the acquisition route to strengthen their tech, teams, and product line or even expand their footprints into untapped geographies.

However, according to the managing partner at Orios Venture Partners, Anup Jain, most M&As will take place between Series A and C stages, where funding has slowed down, and many will choose to retain as much value as possible via the consolidation route.

He further predicts that startups operating in high-cash burn sectors such as ecommerce, edtech, content and media, healthtech, B2C lending, and fintech payments will see more M&A deals than others.

With the number of unicorns expected to cross the 280 mark in the next five years, there will be no dearth of startups taking the consolidation route. Amid this, various funds that have already started to explore secondary asset purchase opportunities at lower valuations will continue to strengthen their play. This will likely trigger investors to look for more merger and acquisition deals for their portfolio companies, thereby paving the way for more unicorns in the county.

Update – August 23, 2023: The table on biggest acquisitions has been updated with the logo for Leisure Group – a European vacation rental operator (that has been acquired by Oyo), which was earlier misrepresented with that of Leisure Hotels Group.

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