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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
InthisfirstreportinourHealthcareTechStartupsinIndiaseries,welookattheemergingcategoriesinIndia’shealthcarestartupecosystemandnotablestartupsineachcategory.WenotethatthemajorityofstartupsintheIndianhealthcaresectorarefocusedonconvenienceorpreventiveapproachestohealthmanagement.
1) Indianhealthcaretechstartupshadreceived$200millionindisclosedfundingthisyear,asofJuly31.Thatfigureisalreadyaheadofthe$154.8millioninfundingthatIndianhealthcarestartupsreceivedin2016.
2) FivecategoriesinwhichIndianhealthcarestartupsareinnovatingareonlinepharmacyande-commerce;homehealthcare;telemedicine;onlinephysiciandirectories;andhealth,wellnessandlifestylemanagement.
3) Playersinthehomehealthcareandhealth,wellnessandlifestylemanagementcategoriesprimarilytargetmiddle-incomeorhigher-middle-incomeconsumers.
4) StartupsinotherhealthcarecategoriesarelargelyfocusedonthemassmarketandenablingaccesstosectionsoftheIndianpopulationthatareotherwisehardtoreach.
Healthcare Tech Startups in India,
Part 1: Bringing Digital
Health Services to an Underserved,
Dispersed Population
Deborah Weinswig
Managing Director
FGRT
[email protected]
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
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September13,2017
DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
TableofContentsExecutiveSummary.........................................................................................................................................3
Introduction:HealthcareTechnologyStartupsinIndia....................................................................................4
EmergingCategoriesinIndia’sHealthcareStartupEcosystem.........................................................................41.OnlinePharmacyandE-Commerce..............................................................................................................5
StartupProfile:Netmeds.........................................................................................................................62.HomeHealthcare.........................................................................................................................................6
StartupProfile:PorteaMedical...............................................................................................................73.Telemedicine................................................................................................................................................7
StartupProfile:DoctorInsta...................................................................................................................84.OnlinePhysicianDirectories.........................................................................................................................8
StartupProfile:Practo.............................................................................................................................95.Health,WellnessandLifestyleManagement...............................................................................................9
StartupProfile:GrowFit.......................................................................................................................10WrappingUp..................................................................................................................................................11
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
ExecutiveSummaryIndia’seconomyisgrowingrapidly,buttherearemanychallengesthatarehinderingprogressinvarioussectors,includinghealthcare.ThishasledtoariseinthenumberofstartupsseekingtocreatesolutionsforIndia’suniquehealthcaresectorproblems.
AccordingtodatafromIndianbusinessblogandstartuptrackerTrak.in,Indianhealthcaretechstartupshadreceived$200millionindisclosedfundingthisyearasofJuly31.Thatfigureisupfromtotalfundingof$154.8millionin2016,accordingtostartupplatformYourStory.
MostIndianhealthcarestartupsareinnovatinginoneoffivecategories:
1. Onlinepharmacyande-commerce
2. Homehealthcare
3. Telemedicine
4. Onlinephysiciandirectories
5. Health,wellnessandlifestylemanagement
Whileplayersinthehomehealthcareandhealth,wellnessandlifestylemanagementcategoriesprimarilytargetmiddle-incomeorhigher-middle-incomeconsumers,startupsinothercategoriesarelargelyfocusedonthemassmarketandenablingaccesstosectionsofthepopulationthatareotherwisehardtoreach.
Source:iStockphoto
Indianhealthcaretechstartupshadreceived$200millionindisclosedfundingthisyearasofJuly31,upfrom$154.8millioninallof2016.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Introduction:HealthcareTechnologyStartupsinIndiaAcommongoalformanygovernments,healthcareprovidersandhumanitarianorganizationsaroundtheworldistoprovideaffordablehealthcareforthoseinneedofit.India’sgovernmentandhealthcarestartupsectorsharethisgoalaswell,andtherearemanypromisinghomegrownstartupsthathavecreatedcutting-edgesolutionstohelpbridgethegapsintheIndianhealthcaresupplychain.
Source:iStockphoto
InthisfirstreportinourHealthcareTechStartupsinIndiaseries,welookattheemergingcategoriesinIndia’shealthcarestartupecosystemandnotablestartupsineachcategory.WenotethatthemajorityofstartupsintheIndianhealthcaresectorarefocusedonconvenienceorpreventiveapproachestohealthmanagement.
Insubsequentreports,weexploresomeofthechallengesthatareuniquetoIndia’shealthcaresector.WealsolookathowIndiacompareswithsomeofitsAsianpeers,itsBRICcohortsandothermajoreconomies,andexplorewhatitcanlearnfromthemintermsofdispensinghealthcare.
EmergingCategoriesinIndia’sHealthcareStartupEcosystemAccordingtodatafromTrak.in,Indianhealthcaretechstartupshadreceived$200millionindisclosedfundingthisyearasofJuly31.Thatfigureisalreadyaheadofthe$154.8millioninfundingthatIndianhealthcarestartupsreceivedin2016,asestimatedbystartuptrackerYourStory.
India’ssuccessfulhealthcarestartupshavegainedstrongfootingthankstothedisruptiveproductsandservicestheyhavebuilt.Thesebusinesseshaveconnectedconsumerswithprovidersinwaysthatwerepreviouslyunexploredorunviableduetoalackofawarenessandanabsenceofsufficienttechnology.Below,weexaminethetopfivecategoriesinwhichIndianhealthcarestartupsareinnovating:
1. Onlinepharmacyande-commerce
2. Homehealthcare
3. Telemedicine
4. Onlinephysiciandirectories
Inthisreport,welookattheemergingcategoriesinIndia’shealthcarestartupecosystemandnotablestartupsineachcategory.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
5. Health,wellnessandlifestylemanagement
ThetablebelowlistssomeofthehealthcarestartupsthathavegeneratedinnovativesolutionstoIndia’suniqueneeds.
Figure1.India:Top10HealthcareStartups,byFundingReceivedYeartoDateasofJuly31,2017
Startup Category Headquarters Investors Amount(USDMil.)
Practo Onlinehealthcareplatform
Bangalore Tencent,ru-Net,RSIFund,ThriveCapital $55.0
HealthCareatHome(HCAH)
Homehealthcareprovider
Noida QuadriaCapitalAdvisors $40.0
MedwellVentures
Homehealthcareprovider
Bangalore MahindraPartners,EightRoadsVentures,F-PrimeCapitalPartners
$21.0
iGeneticDiagnostics
Healthdiagnosticsolutions
Mumbai CDCGroup $19.5
PharmEasy Onlinepharmacy Mumbai BessemerVenturePartners,OriosVenturePartners,TrifectaCapital
$18.0
1mg Onlinepharmacy Gurgaon HBMHealthcareInvestments,MaverickCapitalVentures,SequoiaIndia,OmidyarNetwork,KaeCapital
$15.0
SigTuple Medicalautomationplatform
Bangalore AccelPartners,IDGVentures,EndiyaPartners,piVentures,VHCapital,AxilorPartners
$5.8
SastaSundar Onlinepharmacy Kolkata RohtoPharmaceutical $5.0
GrowFit Healthtechplatform Bangalore ManipalEducationandMedicalGroup(MEMG),SARGroup,TheGroverTrust
$4.5
CollateralMedical
Onlinemedicalequipmentsupplier
Mumbai CarpediemCapital $3.5
Source:Trak.in
1.OnlinePharmacyandE-CommerceTheIndianpharmacyretailmarketwasworthsome$15billionin2015andIndiansecuritiescompanyMicrosecFinancialServicespredictsitwillgrowataCAGRof14%to2020.Themarketisheavilyfragmented,withnumeroussmallpharmacies,mostofwhichareconcentratedinurbanareas.OnlineretailformsonlyatinypartoftheIndianpharmacymarket.In2016,onlinepharmaciesinthecountryreceivedabout$28.5millioninfunding,downfrom$62.2millionin2015,accordingtostartupdataaggregatorTracxn.
KeydriversforonlinepharmaciesinIndiaarethedearthofpharmaciesinruralareasandtier-2andtier-3cities,andtherelativeunavailabilityofmedicinesandmedicalproductsatphysicalstores.
ThreeofthemosthighlyfundedstartupsinthiscategoryareNetmeds,whichweprofilebelow,1mgandPharmEasy.
TheIndianpharmacyretailmarketwasworthsome$15billionin2015andisexpectedtogrowataCAGRof14%to2020.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
StartupProfile:Netmeds
Source:Netmeds.com
Businessbrief:Netmedsisanonlinepharmacythatsellsprescriptionmedicinesaswellasover-the-counterdrugs.
Competitiveadvantage:NetmedswasoneofthefirstonlinepharmaciestobeestablishedinIndia,andthough1mg,acompetingstartup,beganoperatingafewmonthsearlier,Netmedsmanagedtosecureahigheramountoffunding($50million)earlyon.1mg’stotalfundingsofar,acrossfiverounds,hasamountedtoonly$47million.
Traction:InFebruary2017,NetmedsfounderPradeepDadhatoldtheBusinessStandardnewspaperthatNetmedswillexpandoperations,movingfromservingretailcustomersonlytoalsowholesalingtopharmacieslaterthisyear.DadhaalsomentionedthatNetmedswillservemoresmallercitiesthroughtheyear.
Funding:Netmedshasundertakenonlyasingleroundoffundingsofar—$50millioninOctober2015.
2.HomeHealthcareInIndia,thehomehealthcaremarket—whichconsistsofhealthcareservicesthatareprovidedwithintheconsumer’shome—wasworthanestimated$4.1billionin2016,accordingtoconsultancyfirmRedSeer.ThefirmexpectsthemarkettogrowataCAGRof40%to2018,to$8.1billion.
KeydriversinthiscategoryareIndia’sgrowingagingpopulation,consumers’increaseddisposableincomesandaculturalshiftthatisresultinginfewerjointfamiliesresidingtogetherinasinglehome.
PorteaMedicalisoneofthemostheavilyfundedstartupsinthiscategory.OthernotablenamesareHealthCareatHome(HCAH)andMedwellVentures.
ThehomehealthcaremarketinIndiawasworthanestimated$4.1billionin2016.
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StartupProfile:PorteaMedical
Source:Portea.com
Businessbrief:PorteaMedicalprovidesin-homemedicalservicesacross16citiesinIndia.Ithasabout4,500staff,includingphysiotherapists,nursingattendants,nursesanddoctors,whoundertakeatleast100,000homevisitspermonth.PorteaMedicalprovidesgeriatriccare,postoperativecare,palliativecareandphysiotherapy.Italsocollectslabsamplesfrompatients’homesfordiagnosticanalysisandrentsoutmedicalequipmentnecessaryforin-homecare.
Competitiveadvantage:PorteaMedicalhasafirst-moveradvantageandhasbuiltitsbrandinthissegment.ItispartofanentrepreneurshipplatformcalledGrowthStorythatfoundsandmentorsstartups,severalofwhichhaveturnedintosuccessfulventures.
Traction:Apartfromsteadilyexpandingitsofferingandavailabilityinmorecities,PorteaMedicalhasbeenmakingstrategicacquisitionsandinvestmentsinhealthcaretech.
Funding:PorteaMedicalhasraised$46.5millionsofarfromVentureast,QualcommVentures,InternationalFinanceCorporationandAccelPartners.FounderMeenaGaneshtoldreportersrecentlythatPorteaMedicalhopestoraisesome$25millionthisyear.
3.TelemedicineTelemedicineistheremotediagnosisandtreatmentofpatientsviaphoneortheInternet.TheIndiantelemedicinemarketwasworthabout$15millionin2016,accordingtotheAssociatedChambersofCommerceandIndustryofIndia(ASSOCHAM).ThetradeassociationestimatesthatthemarketwillgrowataCAGRof20%to2020,to$32million.
KeydriversfortelemedicineinIndiaareamajorityruralpopulationwithlittleornoaccesstoprimaryhealthcareandarelativeshortageofdoctorsandspecialists.
TopstartupsinthiscategoryincludeDoctorInstaandPracto.
TheIndiantelemedicinemarketwasworthabout$15millionin2016.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
StartupProfile:DoctorInsta
Source:DoctorInsta.com
Businessbrief:DoctorInstaenablespatientstohaveonlineconsultationswithdoctorsthroughitswebsiteandsmartphoneapp.
Marketopportunity:AmajorityofIndia’spopulationlivesinsmallercitiesandtownsthatmaynothaveaclinicoraspecialistdoctoravailablenearby.Telemedicinehelpspatientsinunderservedareasinstantlyconnectwithadoctortrainedinaparticularspecialty.
Competitiveadvantage:DoctorInstaprovidesonlytele-consultations.Itsbusinessmodelincludesrepresentativesworkinginvillagesthathelppatientsusetabletsandphonestoconsultwithdoctorsonline.OneofDoctorInsta’sinnovations,calledHealthATM,isaunitcomprisingascreenforvirtualconsultationandanetworkofhealthInternetofThings(IoT)devices.PatientscanwalkintoaHealthATMandhavesomeoftheirvitalsigns(suchasbloodpressure,heartrateandbloodsugarlevels)measured.Userscanalsoconsultdoctorsthroughthescreens.
Traction:DoctorInstawasestablishedinDecember2015andisstillintheearlystagesofgrowth.CEOAmitMunjaltoldnewspaperTheEconomicTimesinJune2017thatDoctorInstahopestocapture2%oftheIndianprimarycareconsultationsmarketintwoyears,whichtranslatestoamillionconsultationsperday.WhileallofDoctorInsta’scurrentcustomersarefromIndia,thecompanyhopestoexpandtootheremergingmarketssuchasBrunei,Nepal,BangladeshandthePhilippineslaterthisyear.
Financials:DoctorInstabeganwithseedfundingof$500,000andreceived$2.5millionfromUS-basedinvestorsRoundGlassPartnersandBrahmaXVentures.
4.OnlinePhysicianDirectoriesTherearemorethan900,000doctorsinIndia,butnosingle,comprehensiveonlinedatabasegroupsthembylocationandspecialty.Manydoctorsandclinicsarenotlistedonlineatall,andbookingappointmentswiththosethatdouseanappointment-bookingsystemisusuallydoneviatelephone.Atmostclinics,patientssimplyqueueupandarethenattendedtointurn.
Keydriversinthissectorareanincreasingonlinepopulationanddoctors’needforhighervisibility.
TopstartupsinthiscategoryarePractoandLybrate.
Therearemorethan900,000doctorsinIndia,butnosingle,comprehensiveonlinedatabasegroupsthembylocationandspecialty.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
StartupProfile:Practo
Source:Practo.com
Businessbrief:Practoofferstwoproducts,asubscription-basedpractice-managementsoftwaresolutionfordoctorsandclinicsandawebsitethatlistsdoctorsalongwiththeircontactdetailsandabriefprofileoftheirspecialtyandprofessionalexperience.Onthewebsite,patientscanlookupdoctorsbylocationandspecialtyandbookappointmentswiththem.Practoalsoallowspatientstoconsultwithdoctorsonlinethroughitswebsiteandapp,andordermedicinesonlineforhomedelivery.
Marketopportunity:AlargenumberofdoctorsinIndiaarenotlistedinanyonlinedatabaseanddonothaveasystemofmaintainingmedicalrecordselectronically.Practohopestosolvetheseproblemsandmakedoctorsmorevisibleandaccessible.
Competitiveadvantage:ThereareafewotherdatabasesthatlistIndiandoctors,butnoneappearstobeascomprehensiveasPracto’s.Practoalsooffersauser-friendlydesignandinterface.
Traction:Practosaysthatitfacilitatesmorethan50millionappointmentseveryyear(upfromthe7millionthatYourStoryreportedinAugust2014).ApartfromIndia,thepatient-facingwebsiteisavailableinBrazil,Indonesia,thePhilippinesandSingapore.Thedoctor-facingpracticemanagementsoftwareisavailablein10additionalcountries.
Funding:Practohasbeenthroughfourfundingrounds.Itraised$4millioninseriesAfundingin2012,accordingtostartupdatabaseCrunchbase.com.In2015,itraisedaseriesBroundof$30millionfromtwoinvestorsandaseriesCroundof$90millionfromseveninvestors.Initslatestround,itraised$55millionfromnineinvestors.
5.Health,WellnessandLifestyleManagementTheFederationofIndianChambersofCommerceandIndustry(FICCI)estimatedthattheIndianwellnesssectorwasworth$13.3billionin2015.Theorganization’sdefinitionofthewellnessmarketinIndiaincludedbeautyandpersonalcare,nutritionservices,fitnesscenters,andalternativetreatmentsandtherapy.FICCIexpectsthemarkettogrowataCAGRof12%,to$26.3billion,by2020.
Keydriversinthissectorarethelifestylediseasesthatareresultingfromconsumers’increasinglybusylives,growingawarenessofhealthcare
TheIndianwellnesssectorwasestimatedtobeworth$13.3billionin2015.
ManydoctorsinIndiaarenotlistedinanyonlinedatabaseanddonothaveasystemofmaintainingmedicalrecordselectronically.
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management,risingaffluenceandanincreasingcostburdenonthehealthcaresystem.
TopstartupsinthissegmentincludeGrowFit,Cure.FitandGympik.
StartupProfile:GrowFit
Source:GetGrowFit.com
Businessbrief:GrowFitisahealthandwellnesscompanythatprovidesadviceandcounselingonvariousaspectsofwellnessthroughitswebsiteandapp.GrowFitalsosellspackagedfoods—includingbreakfastitems,healthymixes,snacksandbeverages—andmealplansthatincludefreshfoodinthreepackages—theWholeGrainOfficeLunch,theStayFitDietandtheLeanMachineDiet.Consumerscanbuythesethroughasubscriptionprogram,basedontheirhealthneedsandfitnesslevels.
Competitiveadvantage:GrowFitisoneofthefewstartupsintheIndianhealthandwellnesssegmentthatenjoyshighvisibility.ItispartofGrowthStory,awell-reputedentrepreneurshipplatformthathasfoundedandmentoredseveralsuccessfulstartupsinIndia.Dr.RanjanPai,theCEOofManipalEducationandMedicalGroup(MEMG),isonthecompany’sboardofdirectors.MEMGistheprivateequityarmoftheManipalHospitalsgroup—oneofthetophospitalchainsinIndia.GrowFitusesacombinationofdatascience,medicalscienceandbehavioralinsightstocreatewell-researched,personalizedmealandfitnessplansforeachcustomer.
Traction:GrowFithasapproximately25,000customersforitspackagedfoodandmealplans,anditscustomerbasehasregisteredgrowthof30%everymonth.GrowFit’sfreshfoodplansarecurrentlyavailableonlytocustomersinBangalore,butwillbeavailableintwomorecitiesinthenextsixmonths.Thecompany’spackagedfoodsareavailableforpurchaseacrossthecountry.
GrowFit’schatservicessubscriptionrevenuehasbeendoublingeverymonthandfoodsubscriptionordershavegrownbyfivetimessinceMarch2017.Some60%oftheappusersarefromtier-2andtier-3citiesinIndia,andmorethan1,000chatsessionsareheldeveryday.Sofar,some200,000dietchartshavebeensharedandGrowFit’scustomershavelostover90,000kilograms(198,000lbs)intotal.
GrowFitintendstousethefundsitrecentlyraisedtoexpandto10morecitiesacrossIndia.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Funding:GrowFithasraised$4.5millioninseriesAfundingandisoneofthetop-fundedIndianhealthtechstartupsinitscategorysofarthisyear.
Mostofthesehealthcarestartups’solutionsarepositionedtobeaffordabletolower-andmiddle-incomeconsumersinIndia.Forexample,anyonewithasmartphonecanuseittoconsultwithdoctorsthroughtelemedicineappsorbookappointmentswithdoctorsintheirneighborhood,andthosewiththeabilitytoaffordmedicinescanbuythemthroughtheonlinepharmacies.
WrappingUpServicesthataremorenicheinnature,suchasthoseprovidedbyPorteaMedical,arepositionedforIndianconsumersinmiddle-incomeorhigher-middle-incomebrackets.GrowFitisalsotargetedtowardconsumersintheseincomegroups,butspecificallythosewho“havedonetheirhomework”—meaning,informedconsumerswithspecificresultstheywishtoachievebyusingGrowFit’soffering.
Butplayersintheonlinepharmacy,telemedicineandonlinephysiciandirectorycategoriesmainlytargetthemassmarketandenableaccesstounderservedsectionsoftheIndianpopulation.
HealthcareexpenditureinIndiahasbeengrowingsignificantly,butthesectorisvastandremainslargelyunorganized.Lookforournextreportinthisseries,inwhichwediscussthesizeandscaleoftheIndianhealthcaresector,identifythekeycharacteristicsofIndia’sconsumerhealthcareindustry,andexaminewhattheIndiangovernmentisdoingtodevelopthehealthcaresector.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comSwaroopraniMuralidharResearchAssistant
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