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.

The post PharmEasy’s INR 3,500 Cr Rights Issue Oversubscribed, Claims Cofounder Dhaval Shah appeared first on Inc42 Media.

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. 

The post Troubled Mojocare Nears Judgement Day; Investor Refunds On The Cards appeared first on Inc42 Media.

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.

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.

The post The Rise And Fall Of Healthcare Startups: Learning From Mistakes appeared first on Inc42 Media.

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.

The post PharmEasy Plans To Raise INR 3,500 Cr Through Right Issue appeared first on Inc42 Media.

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.

The post What’s Inside The M&A Treasure Trove Of Indian Unicorns appeared first on Inc42 Media.

Bollywood singer Sukhbir Singh has invested an undisclosed amount in the Pre-Series A funding round of the vegan healthcare and personal care product startup Fitspire. 

The round also saw participation from Ashish Chand and Sohil Chand (LC Nueva), Ivor Braganza (Next5 Ventures Oman), Dheeraj Jain (Redcliffe London), the Family Office of Jaipurias (represented by Ruchirans Jaipuria and Anuraag Jaipuria) and existing investor Amit Singhal also participated in the round.

Founded in 2020 by Vipen Jain, Delhi-based Fitspire addresses contemporary lifestyle concerns and offers healthy nutrition supplements. It claims to have over 1 Mn customers, with a network of 10,000 fitness influencers. Previously, it had raised $1 Mn in seed and bridge rounds.

The startup has set a revenue target of INR 300 Cr within the next three years as it marked a sales increase by ten times each year.

The startup will use the funds to enhance the Health and Personal Care (HPC) ecosystem, expand its geographic reach in India and around the world, introduce additional products and establish new revenue streams.

After the pandemic, Indian customers have shown a heightened interest in choosing fitness and health supplements. This surge has led to substantial investor attention towards startups in this sector.

Earlier this year, HealthifyMe bagged $30 Mn in its pre-Series D funding round led by LeapFrog Investments and Khosla Ventures. In July, FMCG major Marico said that it is going to acquire a majority stake (58%) in D2C nutrition brand Plix for INR 369.01 Cr.

Last year, Wellbeing Nutrition raised $10 Mn in its Series B funding round led by Hindustan Unilever Limited and Fireside Ventures.

According to Fitspire, the market is valued at a staggering $140 Bn, while the nutraceuticals segment alone is valued at $39 Bn. Both segments are projected to grow at a compounded annual growth rate (CAGR) of 18%.

The post Bollywood Singer Sukhbir Singh Backs Vegan Wellness Brand Fitspire appeared first on Inc42 Media.

Healthtech unicorn Pristyn Care has commenced operations in Bangladesh, setting aside INR 100 Cr for the next two years of expansion in the neighbouring country.

The startup, which specialises in surgical treatments, plans to have five patient care centres in Dhaka and Chattogram (Chittagong) by the end of FY24. Pristyn Care also aims to hire 200 employees across various departments in Bangladesh as part of the plans.

“With the country’s (Bangladesh) healthcare market expected to reach $14 Bn by the end of 2023, we are committed to the growth of healthcare in Bangladesh. Over the next two years, we’ll invest INR 100 Cr to establish a robust healthcare infrastructure,” said Pristyn Care cofounder Harsimarbir Singh.

The startup also told Inc42 that it has been running a pilot in Dhaka for the past three months, having partnered with five hospitals in the Bangladeshi capital. The startup has a team of 35 care coordinators already working out of Dhaka, coordinating surgeries and primary care.

Founded by Singh, Dr Vaibhav Kapoor, and Dr Garima Sawhney in 2018, Pristyn Care offers advanced secondary care surgeries through its network of more than 800 hospitals, over 200 clinics, and 400+ in-house super-speciality surgeons. The startup claims that it provides treatment for over 50 diseases across 42 cities, having treated 150K+ patients so far.

Pristyn Care entered the 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 Gurugram-based startup has raised a total funding of over $177 Mn to date.

Last year, Pristyn Care acquired New Delhi-based healthcare startup Lybrate for an undisclosed amount. The healthtech unicorn competes against the likes of MediBuddy, Practo and PharmEasy. 

Trouble Simmering Underneath

The startup was shrouded in controversy in March this year as it fired 300-350 employees across departments, Inc42 had exclusively reported at the time. The layoffs impacted sales, tech and product teams, according to Inc42 sources.

Inc42 further learnt that GST officials visited Pristyn Care’s office a few months ago seeking clarifications about the startup’s operations. The healthtech startup said the department had some simple questions about its business model.

While the startup has not filed its financial statement for financial year 2021-22 (FY22) with the Ministry of Corporate Affairs (MCA), it reported a loss of INR 63.5 Cr in FY21 on operating revenue of INR 96 Cr. 

The healthtech unicorn was also shaken last month as it reportedly suspended the founders of Lybrate for filing a default notice against the startup. The cofounders – Rahul Narang and Saurabh Arora – were shown the door for filing a default notice against Pristyn Care for outstanding payments emanating out of the acquisition deal.

The post Healthtech Unicorn Pristyn Care Looks East, Launches Bangladesh Ops appeared first on Inc42 Media.

In another trouble brewing for Pristyn Care, the healthtech startup has reportedly suspended the founders of Lybrate, a primary-care company it acquired last year.

Sources told Livemint that the Lybrate’s cofounders Rahul Narang and Saurabh Arora were shown the door for filing a default notice against Pristyn Care for outstanding payments emanating out of the acquisition deal. 

Reacting to the reports, a Pristyn Care spokesperson told Livemint, “Pristyn Care has and shall continue to act in accordance with the contractual terms and conditions. Pristyn Care has not defaulted on any of its contractual obligations. At this point, it would be inappropriate to comment on the matter.”

The Tiger Global-backed healthtech startup acquired Lybrate last year for an undisclosed amount in a deal that saw the two cofounders – Narang and Arora – join Pristyn Care. As per reports, the deal was pegged in the range of $20 Mn to $30 Mn, including payments to existing investors such as Nexus Venture Partners and Tiger Global Management.

The drama erupted after the acquisition was executed. As per the report, the investors were paid their respective amounts while the cofounders received only a part of the proceeds. The duo were reportedly promised the remaining payments in two separate tranches – the first one on June 1, 2023 and the second one in 2024. 

However, a majority of the payments to Lybrate’s cofounders are yet to go through. “Nearly 60-80% of the payment owed to the founders has not yet been paid,” said a person privy to the development. 

After multiple delays, the duo served a notice to Pristyn Care’s operating entity GHV Advanced Care on Tuesday (July 18). In their notice, the Lybrate cofounders reportedly alleged that Pristyn Care ‘failed to acquire the second tranche of shares in Lybrate, as agreed in the original share-purchase agreement.’

The Saga Of Troubles

The new trouble has erupted at a time when Pristyn Care has bogged down by multiple challenges. Amid a full blown funding winter, the startup, in March this year, laid off 300-350 employees, while it claimed, on record, that it only fired 45 employees for performance-related issues.

Not just this, GST officials also visited the premises of Pristyn Care last year seeking clarifications about the startup’s operations. The healthtech platform has also been bogged down by heavy losses which stood at INR 64 Cr in the fiscal year 2020-21 (FY21) against a revenue of INR 64 Cr during the same period. 

The company is also yet to file its FY22 financials. With payments due and funding scarce across the ecosystem, it now seems that the acquisition deal has also waded into choppy waters. 

Founded in 2018 by Harsimarbir Singh, Vaibhav Kapoor, and Garima Sawhney,  Pristyn Care offers advanced secondary care surgeries through its chain of more than 800 hospitals, clinics, and in-house super-specialty surgeons. It claims to offer treatment for more than 50 diseases across 42 cities. 

Backed by marquee names such as Peak XV Partners (formerly Sequoia Capital India), Tiger Global, Winter Capital and Eriq Capital, Pristyn Care entered the unicorn club in 2021 after raising a mammoth $96 Mn as part of its Series E round at a valuation of $1.4 Bn.The Gurugram-based startup has raised a funding of more than $177 Mn since its inception.

Pristyn Care competes against the likes of MediBuddy, Practo, and PharmEasy across multiple offerings.

The development comes close on the heels of Inc42 reporting a similar story which elaborated how participants of the show Shark Tank India were facing deliberate delays in investments from sharks under various pretexts. 

The post Pristyn Care Suspends Lybrate Cofounders For Filing Default Notice Against The Healthtech Unicorn appeared first on Inc42 Media.

API Holdings, the parent entity of debt-laden PharmEasy, reportedly decided to raise INR 2,000 Cr-INR 3,000 Cr via a rights issue, during an all-investor meeting held on Monday (July 17), to repay the loan it took from Goldman Sachs.

The company has 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, CNBC TV18 reported citing sources.

Earlier this month, a report said that PharmEasy informed its board and investors about its plans to raise around INR 2,400 Cr through a rights issue, at a 90% discount, as the startup is in immediate need of money to pay off INR 2,280 Cr ($285 Mn) Term B loan, for which it had pledged shares of its subsidiary Thyrocare as collateral.

As per the latest report, Manipal Group’s family office has offered to invest up to INR 1,300 Cr in the epharmacy startup. 

A section of investors at PharmEasy had reservations on the sale of shares to the Manipal Group at low valuations. As a solution, the board came to a consensus decision to give the first chance to its existing shareholders to invest on a pro-rata basis, the report said. 

API Holdings’ board has reportedly approved Manipal Group’s binding offer but only to the tune of non-participation by the company’s existing shareholders. 

PharmEasy is also backed by the likes of Prosus Ventures, TPG, and Temasek.

The post-money valuation of PharmEasy, after this investment, is expected to be to the tune of INR 6,000 Cr-INR 7,000 Cr (about $730 Mn-$850 Mn), a major drop from a valuation of $2.8 Bn during its previous fund raise. 

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 a severe market downturn, PharmEasy also failed to launch its INR 6,250 Cr IPO, for which it had filed its DRHP in November 2021.

The post Debt-Laden PharmEasy To Raise INR 2,000 Cr-INR 3,000 Cr Via Right Issue appeared first on Inc42 Media.

Healthtech startup Fold Health has raised $6 Mn funding in a round led by Iron Pillar. The round also saw participation from Iora Health’s Dr. Rushika Fernandopulle, National Quality Forum’s Dr. Christine Cassel, Aetna’s Dr. Molly Coye, Cigna’s Sridhar Krishnan, and Perot Jain’s Anurag Jain.

Founded in 2021 by Abhijeet Gupta and Ram Sahasranam, Fold Health allows medical workers to integrate electronic health records and use software tools to automate tasks.

Fold Health aims to use the freshly raised funds for scaling business and hiring talent.

An Economic Times report quoted founder Gupta saying, “We have got nine customers with about 15,000 lives among them. This year, we should be at 10X or more of that in the next 12 months.”

Further commenting on the expertise of the founders, Mohanjit Jolly, partner at Iron Pillar, said, “Their domain expertise, combined with a massive US healthcare market ready for disruption, a unique built-from-scratch VBC technology stack, and strong endorsement by their early customers and prospects got the Iron Pillar team excited about backing Fold.”

The San Francisco-based startup has recently opened its research and development office in Pune which employs 40 people and is aiming to rapidly expand its employee count in the US office which employs nine employees currently. 

The new fund takes the overall capital raised by the startup to $12 Mn, as it raised $6 Mn earlier. 

Healthtech and its services have been redefined since the pandemic and the impact seemingly continues to prevail. 

Recently, healthtech startup HealthifyMe raised $30 Mn in its pre-Series D funding round to strengthen its AI capabilities, hiring, and global expansion. 

Earlier in March this year, SaaS healthtech startup HealthPlix raised $22 Mn in its Series C funding round to grow its doctor base and invest more in sales, product and engineering teams.

The post Fold Health Bags $6 Mn Investment To Help Professionals Integrate Electronic Health Records appeared first on Inc42 Media.

Caught in the middle of multiple financial troubles, epharmacy giant PharmEasy has set in motion the process to raise additional capital from investors. 

The board of API Holdings, the startup’s parent company, has reportedly approved a resolution to increase the company’s authorised share capital. A share capital increase is undertaken when a company wants to raise funds from new investors. 

The proposal is now pending before PharmEasy’s equity investors who will now vote on the proposal. The voting, which starts on July 8, will conclude on August 5.

As per The Economic Times, the company plans to increase its authorised share capital to INR 3,500 Cr (nearly $423 Mn). This will be divided into 3,000 Cr equity shares of INR 1 each and 500 Cr preference shares of INR 1 each. 

This comes close on the heels of the reports that the healthtech startup PharmEasy was looking to raise nearly INR 2,400 Cr through a rights issue at a 90% discount. The issue was reportedly initiated to repay the debt it took from Goldman Sachs after PharmEasy breached its loan covenants. 

Led by existing investors TPG and Temasek, the rights issue of API Holding is expected to be undertaken at a price of INR 5 per share. In contrast, the startup last raised capital at INR 50 apiece back in 2021. The new rights issue will peg the startup at $500-600 Mn, down from a record high of $5.6 Bn two years ago.

If the deal goes through, PharmEasy could very well become one of the first new-age tech companies to undergo a down round, emblematic of the valuation correction that has been the norm lately.

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. 

However, the startup has been mired in multiple troubles in the recent past, including ballooning losses, a debt crisis, shelved IPO plans and a funding drought. The company reported losses to the tune of INR 2,731 Cr in FY22, up from INR 641 Cr in FY21.

However, the trouble started when it breached the loan covenant terms of its Term Loan B (TLB) agreement with Goldman Sachs after it failed to raise an equity round of around INR 1,000 Cr despite trying for a year. The startup is especially concerned about wrapping up the debt as it has pledged the shares of its cash cow Thyrocare as collateral for the loan.

It has also faced valuation cuts in the books of many of its investors such as Janus Henderson and Neuberger Berman. Making matters worse have been reports that PharmEasy could be forced to compensate the founder of Thyrocare, Arokiaswamy Velumani, who had secured anti-dilution rights way back in 2021. 

With much at stake, it remains to be seen what next course of action the startup undertakes. As of now, the company is at crossroads as the future seems uncertain and full of challenges. 

The post PharmEasy Board Okays Plan To Raise Additional Capital, Ball In Investors’ Court appeared first on Inc42 Media.

Amid serious financial troubles, healthtech startup PharmEasy has reportedly informed its board and investors that it is planning to raise around INR 2,400 Cr through a rights issue at a 90% discount to repay the loan it took from Goldman Sachs.

As per a report by the Economic Times, PharmEasy’s existing shareholders TPG and Temasek are leading the rights issue. Besides, Ranjan Pai, chairman of the Manipal Group, is also expected to join the company board. 

The publication said PharmEasy parent’s API Holdings would issue new stock at INR 5 per share in its rights issue. This is in sharp contrast to the time when API Holdings raised funds at INR 50 per share value.

PharmEasy was not immediately available to respond to Inc42’s query on the matter.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy operates in the overarching healthtech domain, offering services from medicine deliveries to sample collections for diagnostic tests. PharmEasy’s parent company API Holdings has rapidly expanded on the back of venture capital and debt over the years and raised over $1.5 Bn, as per Inc42 data.

The Mumbai-based startup was last valued at $5.6 Bn in 2021.

As per the publication’s report, the rights issue will likely take place at a valuation of around $500 Mn-$600 Mn. A person in the know of the matter also said that PharmEasy’s previous valuation would be around $4.6 Bn, adjusted for the dollar-rupee rate.

Meanwhile, as per a report by Moneycontrol, API Holdings is under a lot of pressure to repay the Goldman Sachs loan as it had pledged shares of its subsidiary Thyrocare as collateral for the loan.

It must be noted that as per a recent report, PharmEasy breached its loan covenant terms in its INR 2,280 Cr ($285 Mn) Term B loan agreement with Goldman Sachs, within a year after raising the high-cost debt.

As per the loan terms, the epharmacy startup was supposed to raise an equity round of around INR 1,000 Cr ($120 Mn) but failed to do so despite trying for a year. The company had raised the debt to pay off a previous debt that it had taken from Kotak Mahindra Bank to buy Thyrocare.

“After the covenant breach, the board and shareholders wanted the loan to be repaid to Goldman Sachs. Also, the price of the share had to be readjusted as it was freely available for INR 20 in the grey market,” a person was quoted as saying by the Economic Times. Reportedly, he also said that PharmEasy had to choose between an outright distress sale or opt for a rights issue, which would also help current investors increase their stake in the company and bring down their cost of purchase.

Meanwhile, PharmEasy’s investors and the board have in-principle agreed to issue new employee stock options to the founders and the other employees in order to compensate for the massive value erosion.

PharmEasy cofounder and CEO Siddharth Shah will reportedly address the company’s staff on Wednesday (July 5) to explain the matter.

PharmEasy In Troubled Waters

From increasing debt to widening losses and delayed IPO, PharmEasy has been on a roller coaster ride over the last few years.

In FY22, PharmEasy’s consolidated loss widened to INR 2,731 Cr from INR 641 Cr in FY21, while its operating revenue grew to INR 5,729 Cr from INR 2,235 Cr in the previous fiscal. Meanwhile, the startup kept acquiring more companies that year and continued spending heavily towards employee benefits.

As troubles grew amid a severe funding crunch, PharmEasy laid off several employees in December 2022.

Meanwhile, the startup’s INR 6,250 Cr IPO plan also went haywire. PharmEasy filed its DRHP in November 2021 and received approval from SEBi in February 2022. However, it kept on delaying its IPO amid the downturn in the global market. 

Recently, a few of its investors also slashed the startup’s valuation. While Janus Henderson cut its valuation to about $2.8 Bn, Neuberger Berman trimmed the valuation of API Holdings to $4.4 Bn in March this year from $5.6 Bn earlier.

The post Debt-Laden PharmEasy To Raise INR 2,400 Cr Through Right Issue At A 90% Discount appeared first on Inc42 Media.

Update: After Inc42’s in-depth look at the problems at PharmEasy, reports emerged about the company raising INR 2,500 Cr from existing investors in a rights issue. The healthtech unicorn is said to be raising these funds at a 90% valuation cut.

Click here to see how PharmEasy is trying to free itself from its pile of debt.

Our original story follows

From high hopes of an INR 6,250 Cr IPO to its current beleaguered state — the fortunes of healthtech unicorn PharmEasy have swung wildly in less than a year.

Before we delve deeper, here’s a quick snapshot of what is ailing the company:

• A serious lapse in franchise operations that has left franchisees exasperated
• Mismanagement of the profitable Thyrocare business after acquisition
• A fast-brewing financial crisis around its own $300 Mn Term B Loan (BYJU’S is not alone)
• Layoffs and departures of key personnel, with the tech team reduced to 100 employees from around 500 last year
• Employees allege lapses in the leadership despite five cofounders leading the various verticals for PharmEasy

The franchise model challenges have also spilled over to social media, where several individuals have blamed PharmEasy for charging them high fees and not providing adequate support.

Sources close to the company, pharma sector experts and former employees claim these issues have been bubbling for a few months and now things have come to a boil for the Mumbai-based healthtech unicorn.

Inc42 has learnt that the company has reduced its workforce by over 500 employees through resignations or layoffs since last year. Inc42 has reported on some of these layoffs over the past year, including an exclusive on the situation at PharmEasy subsidiary Docon Technologies.

Former employees, some of whom have recently quit the company, allege that despite having five cofounders, PharmEasy has serious leadership gaps, adding to the chaos.

PharmEasy did not respond to requests for comments and responses to the allegations of mismanagement or the lack of a financial safety net.

PharmEasy’s Pandemic Swing

Any story about PharmEasy inevitably speaks about how the company was founded by five friends who grew up in pretty much the same neighbourhood in Mumbai.

Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia teamed up to take the pharma ecommerce plunge with PharmEasy in 2015. Since then, the parent company, API Holdings, has rapidly expanded on the back of venture capital and debt, raising more than $1.5 Bn, as per Inc42 data.

Today, the company has as many as 36 subsidiaries that operate the B2C epharmacy ops, B2B pharma supply, franchise stores, SaaS for pharmacy management, pathological testing and ancillary telemedicine services.

While other healthtech companies have stuck to one or two of these models as a core business, PharmEasy bullishly went after the entire stack. To get there, it went on an acquisition spree, spending more than $865 Mn in the process.

But acquisition does not equal success, and as we can see, Thyrocare’s profits have fallen to FY2019 levels after PharmEasy acquired the company in mid-2021.

In FY23, Thyrocare saw a major drop in revenue to INR 491 Cr from INR 568 Cr in FY22. Its profits plummeted in June 2021 (FY22). The deal coincided with the end of the second wave of Covid in India when testing numbers had peaked.

The diagnostics company reported profits of INR 34 Cr in the first six months of FY23, as opposed to INR 109 Cr in H1 FY22, just after the PharmEasy deal. A portion of these profits is also being used to pay the interest on the debt that PharmEasy had taken to buy the company.

Plus, PharmEasy’s parent API Holdings is deep in the red. 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.

The higher losses were a result of PharmEasy’s acquisitions in the year and its rampant marketing and salary spend. Employee benefit costs surged to INR 1,459 Cr from INR 270 Cr in FY21, while advertising and promotional activities accounted for INR 494 Cr, up from INR 134 Cr. Total expenses shot up to INR 8,492 Cr in FY22, nearly 3X higher than INR 2,981 Cr in FY21.

Without its FY23 numbers, we can’t say with any certainty that PharmEasy has managed to cut back the heavy spending. One way the company has looked to push revenue is through the franchise model for both PharmEasy-branded pharmacies as well as Thyrocare’s diagnostics biz, but these are fraught with major issues.

But the fact is that the company is faced with stiff competition in the epharmacy and diagnostics space, and employees allege that it continues to spend considerably on marketing and customer acquisition.

The shaky financial situation has created a host of problems for Thyrocare, which otherwise has a stellar reputation in the market. With Thyrocare’s profits also down, PharmEasy will have a tough time showing why investors should invest at a higher valuation.

Now that PharmEasy’s IPO ambitions have been put on hold, the company is still chasing a new funding round as it looks to get out of the debt hole.

Franchise Models Plagued By Issues

The franchise operations, like any other franchise model, hinge on PharmEasy attracting store owners and existing unorganised players in the diagnostics and pharmacy space. While theoretically it is a cost-effective way to expand and scale up, there are plenty of problems that have dogged this vertical.

Franchise owners are unhappy with the commission terms being changed mid-way through FY23 and then again earlier this year (in the ongoing FY24). This has left franchises with very thin margins. Further, on the pharmacy franchise side, store owners bemoan the lack of support from the company in handling operations.

Let’s dive into these issues separately:

Thyrocare Feels The Heat From Rivals 

“The franchise model is not unusual in the diagnostics business. Every major player wants a deeper presence in the major cities, but the likes of SRL and Lal Pathlabs offered better commissions for each walk-in or lead,” a former PharmEasy employee, who was working on the B2B and franchisee tech products, told Inc42.

Like any other franchise model, PharmEasy charged fees from pharmacists, store owners and merchants to open up new locations under the Thyrocare umbrella. In the initial days, the company took 10% as commission from a franchise store for each transaction until a certain fee ceiling was hit. For example, if the ceiling is INR 2 Lakh, PharmEasy would not charge any commission beyond this point.

This proposition appealed to several store owners. But the growing competition meant that PharmEasy could not afford to leave any revenue on the table when it came to the franchise model. In the diagnostics business, Thyrocare competes with the likes of Redcliffe, SRL, Abbott, Metropolis and many others. Almost all of these have heavy discounts for basic tests, which PharmEasy has to match to keep up pace, said one Thyrocare franchise owner based in Kalyan, near Mumbai.

Lately, PharmEasy has changed this structure, the franchise owner added. The company now charges a direct commission from each franchise for every test instead of the earlier model of charging commissions until a specific ceiling was hit. Moreover, franchises have to pay a small fee for each consumable (such as vials or collection kits) used in the collection process.

“If a test costs INR 150 for the patient, we are now being paid INR 60 instead of INR 80 earlier,” the franchise owner mentioned above told Inc42.

He also said that even though his Thyrocare outlet gets a lot of walk-ins, he is not empowered to offer the same discounts as the PharmEasy app where users can get offers such as buy-one-get-one offer for some tests. Customers who want to avail this offer cannot get it at a franchise location and have to use PharmEasy’s app with Thyrocare’s direct sample collection service, which bypasses franchises.

It’s no wonder that franchise owners claim the company is shortchanging them on commissions as well as potential new business.

Franchise owners also have to face the customer’s ire when it comes to delays from the PharmEasy/Thyrocare testing labs. Many franchise owners have taken to Twitter and other social media platforms to talk about the lack of support on the operations front from PharmEasy.

Besides diagnostics, the company also has a franchise arrangement for pharmacies under the PharmEasy brand. In this case, many store owners have complained that employees assigned as support personnel for franchisees have been withdrawn by the company in recent weeks.

Staff Crunch Hurts PharmEasy Franchise Ops 

One such franchise store owner claims there is a group of 400-500 PharmEasy franchises that is dissatisfied with the company for charging up to INR 4 Lakh up front but not providing the support that is expected in the early days.

“Within 15 days, PharmEasy withdrew many of the people it had assigned to help us manage operations. They said they would handle marketing and digital enablement, but most of the time we cannot get hold of anyone in the company,” the PharmEasy franchise store owner mentioned above said.

As per the terms of the agreement, PharmEasy says it would provide fulfilment, marketing and digital enablement for franchise pharmacies, but franchise owners say that the company has reneged on these services.

The retail franchise model has become the go-to-market strategy for all leading pharma chains. Apollo, MedPlus, Wellness Forever and others have expanded rapidly on the back of franchise models even during the peak Covid times. And now, franchises are trapped in PharmEasy’s terms and conditions since they have already paid a cost up front.

Medical stores and diagnostics centres are typically clustered around major hospitals. This means moving to a rival franchise is also not always possible since there is very little possibility of multiple outlets of the same brand in one area.

The lack of hands-on support for franchises, employees allege, is directly related to layoffs and resignations at PharmEasy.

In many ways, PharmEasy’s debt situation has forced it into a corner. The company has to chase revenue through every avenue and cut costs significantly to raise its next round and free itself from the chain of debt, which began with the Thyrocare acquisition in 2021.

PharmEasy’s Tech Platform On Life Support

The tech platform, which was seen as a competitive moat for PharmEasy when it came to the Thyrocare acquisition, is also fast eroding due to layoffs and exits of key tech leaders, sources said.

Sources and former employees told Inc42 that there are hardly any employees left in the tech team to build new products, and most products are in maintenance mode.

For one, the technology or product that helps read prescriptions does not always work. This means PharmEasy is processing orders for prescriptions it has no idea about. “You can add any prescription and it will usually be accepted. In case of rejection, a doctor will call and prescribe medicines.”

Speaking to Inc42, one retailer in South Delhi alleged that medicines are often prescribed on the phone by PharmEasy agents without any diagnosis, and at times, these tele-doctors also upsell products.

This Twitter thread by the well-regarded TheLiverDoc highlights how telecallers look to tack on herbal medicines to other orders; these herbal medicines are not always safe for general consumption.

Indeed, retailer associations have complained about the lack of due diligence and compliance by epharmacies, including improper storage of medicines and selling medicines without prescriptions.

Employees allege that the company is no longer able to compete with other epharmacies through discounting due to a funding crunch.

“Even though whatever we sell has high margins, the volumes are down. We are currently doing 50K orders per day from an average of 80K in FY22; orders mostly coming from metros,” one former employee claimed.

Employees also allege that despite the exits of key personnel and the restructuring of the managerial layer, PharmEasy’s founders are typically missing from day-to-day operations and only address town halls once every quarter.

PharmEasy On The Funding Trail

It doesn’t help PharmEasy that a significant portion of its monthly expenses go towards debt repayments. As per reports, PharmEasy has a monthly repayment outlay of INR 15 Cr, and its monthly cashburn is also around INR 15 Cr.

The company also claimed that it reached a positive EBITDA for the first time in April this year, with a net revenue of INR 600 Cr. These numbers could not be corroborated in any regulatory filings.

PharmEasy reached a valuation of $5.6 Bn with its last funding round of nearly $350 Mn in October 2021, which saw investments from Amansa Capital, ApaH Capital, Janus Henderson and others. Cut to June 2023 and Janus Henderson’s regulatory filings showed a markdown of its PharmEasy investment with a valuation of $2.7 Bn.

Plus, the online pharmacy has reportedly breached a loan covenant in its INR 2,280 Cr ($285 Mn) Term B loan agreement with Goldman Sachs in August 2022.

As per the loan covenant, PharmEasy had to raise an equity round of around INR 1,000 Cr ($120 Mn) to fund its monthly burn. However, it has failed to do so, and today, the company continues to repay the loan at an interest rate of up to 18% per annum.

PharmEasy raised INR 750 Cr through convertible notes in October last year from existing investors and also raised a debt round from Temasek’s EvolutionX, but a majority of this has gone in debt repayments.

The company was reported to be in the process of raising further equity funding to push for scale and growth on both epharmacy and diagnostics front. However, so far, there’s no official indication that PharmEasy has improved its financial position enough to attract investors.

Earlier this year, PharmEasy is said to have appointed Avendus Capital as advisors for fundraising, but there’s no certainty of the company actually raising any funds given its current situation. Avendus did not respond to a comment on the funding talks.

Given the global macroeconomic slowdown, investors are primarily looking to back companies that have made some meaningful progress in terms of sustainability.

PharmEasy hoped to pay off INR 2,000 Cr of its debt from the proposed IPO proceeds of INR 6,250 Cr. Having postponed its IPO plans to 2025, the epharmacy unicorn is looking to raise equity capital, but the healthtech and epharmacy landscape has changed drastically.

Two More Complications: Regulations & Competition

For PharmEasy, operational and executional challenges are compounded by the regulatory pressure on the epharmacy segment as well as growing competition. In April this year, it was reported that the government sought a report from epharmacies to understand what consumer benefits they were providing beyond discounts.

The lack of direct regulations pertaining to epharmacies in India has exposed startups such as PharmEasy to legal challenges from retailer associations and other bodies.

Delhi-based South Chemists and Distributors Association (SCDA) is one of the bodies that had moved the courts against epharmacies. SCDA’s legal and media head Yash Aggarwal believes authorities need to temporarily shut down epharmacy platforms until a full-fledged legislation is drafted.

“When things are against the law, especially with regard to the health of the public, follow court’s directions and shut these platforms till norms are promulgated in the matter,” SCDA’s Aggarwal told Inc42.

Indeed, many epharmacy platforms were pulled up by the Drugs Controller General of India (DCGI) in February for allegedly violating rules under the Drugs and Cosmetics Act, 1940.

The situation is particularly precarious given the high competition in epharmacies with players such as PharmEasy, Tata 1Mg, Flipkart Health+, Amazon, NetMeds and others. The entry of horizontal ecommerce marketplaces such as Jio, Tata, Flipkart and Amazon has certainly catalysed the regulatory crackdown on epharmacies.

Former employees managing PharmEasy’s online business told Inc42 that no player can afford to ignore the threat from Amazon, Flipkart, Tata (1Mg) and Reliance (NetMeds). The vertical integration and specialisation that epharmacies have built over the years can easily be nullified by the scale of these large players.

The likes of Reliance, Tata and Flipkart have taken the ‘super app’ route to compete with pure-play epharmacies such as PharmEasy. Reliance Retail-owned NetMeds has also entered the retail pharmacy space with physical stores in Chennai. Reliance Retail claims it will open 2,000 such stores in a year.

PharmEasy might have grabbed the healthcare industry’s eyeballs with its Thyrocare acquisition and rapidly building its telemedicine stack, but it’s looking more and more like the unicorn needs a bigger dose of funding to continue on this trajectory. Will the cost-cutting and changes in its franchise model be enough to bring in long-term sustainability and convince gun-shy investors amid this funding winter?

The post Is PharmEasy’s Debt-Laden Bubble About To Burst? appeared first on Inc42 Media.

Healthtech startup WatchYourHealth (WYH) has bagged $2.2 Mn from Conquest Global Ventures to drive innovation, foster global expansion, and revolutionise consumer engagement in the healthcare industry.

Launched in 2015 by Ratheesh Nair, WYH offers customer engagement services to the healthcare delivery and healthcare financing businesses by leveraging SaaS platform with a phygital approach. 

The startup will use the fresh funds to fuel the next phase of its growth and expansion plans. The funds will be allocated towards product development, geographic expansion, sales and marketing efforts, office spaces, and inventory enhancement.

The startup aims to shape the future of consumer engagement in the healthcare industry through its B2B integrated SaaS platform and B2C marketplace. 

WYH claims to have set a remarkable track record as a bootstrapped entity, achieving profitability in FY21 and FY22. 

Commenting on the startup’s growth plans, founder Nair said, “As we surpassed the milestone of 10 million users on our SaaS platform at the beginning of FY24, we recognised the need to strengthen our product offerings and expand into similar geographies worldwide.”

Further adding to this, he said that WYH intends to expand operations beyond India across key markets including Japan, Singapore, UAE, Indonesia and Bangladesh.

India’s population certainly makes the country’s healthcare market a big opportunity for the startups and other big existing players. Despite the funding crunch and regulatory measures by the government on e-pharmacies, the healthtech startups are on the rise.

Recently, one of the competitors of WYH, Mykare bagged $2.01 Mn seed funding to elevate patient experience. 

On Monday (June 26), another healthtech startup Karma Primary Healthcare bagged an undisclosed amount in a Series A funding to increase awareness, promote preventive healthcare, improve supply chain efficiencies, and improve curative service delivery. 

Another in the row, HealthifyMe has recently bagged $30 Mn in its Pre-Series D funding round.

The post Healthtech Startup WatchYourHealth Bags Funding To Improve Customer Engagement appeared first on Inc42 Media.

Healthtech startup Karma Primary Healthcare has bagged an undisclosed amount of Series A funding from Innospark Ventures, 1Crowd, Innovative Directions, Aanshi LLP, Social Innovation Circle, Sunil Mishra and other angel investors. The startup aims to use the funds for product development. 

Founded in 2014 by Jagdeep Gambhir, the Udaipur-based healthtech startup aims to bridge the prevailing gaps in the rural healthcare sector. It aims to increase awareness, promote preventive healthcare, improve supply chain efficiencies, and improve curative service delivery. 

Karma claims to have built a robust and comprehensive primary healthcare delivery solution to offer real-time online video consultations and deliver healthcare to users via its facility-based, paramedic-assisted clinics. According to Karma, this way it is developing a comprehensive ecosystem of clinical treatment, quality medicines and diagnostics. 

On the B2C front, Karma runs 25 clinics presently with consultations, diagnostics & pharmacy services across Rajasthan, Haryana, Gujarat, and Madhya Pradesh. 

For the B2B partners it offers a secured, cloud-based tech platform customised for public health partnerships. Karma’s B2B services are available across 300+ locations within India and the startup claims to have completed more than 1.5 Mn transactions.

Commenting on the expansion goals, the founder said, “We look to expand our clinic footprint to 80 clinics in 7 states. We also look to create linkages with secondary and tertiary players to create a seamless patient experience. We are thankful to our incoming and existing investors that have shown faith in our business model, its impact and potential.”

Further, Gambhir told Inc42 that Karma also intends to bolster its marketing and branding endeavours, with a specific emphasis on leveraging data, research and analytics.

In India, the e-pharmacies are going through several government intervention and regulations for selling medicines on their platforms. Recently, the Delhi High Court (HC) came down hard on the union government for failing to formulate rules to govern the country’s burgeoning epharmacy industry.

However, the healthtech industry continues to witness growth and bag investment. Last week, Bengaluru-based fitness startup HealthifyMe raised $30 Mn in its pre-Series D funding round led by LeapFrog Investments and Khosla Ventures.  

In addition, Pharmeasy aims to raise some fresh funds for which it has reportedly appointed Avendus Capital.

The post Karma Primary Health Bags Funding To Bridge Gaps In Rural Healthcare appeared first on Inc42 Media.