Healthcare startup Medikabazaar plans to clock $100M in revenues and close Series B by FY20
Medikabazaar, a Mumbai-based online B2B aggregator startup for medical supplies, in a statement said it is in talks to raise Rs 200 crore in Series B funding from a clutch of venture capital investors in Japan, Belgium, and Germany. This includes existing investors such as Delhi-based venture capital fund HealthQuad, Rebright Partners, Japan’s Mitsui Sumitomo Insurance’s VC arm, and Belgium-based Kois Invest. The round is expected to be closed in this financial year.
The company stated that it will use the capital for expansion of its fulfillment centres, strengthening the technology infrastructure, making last-mile delivery more efficient, and investing in logistics automation. A significant portion of the funds will go towards further penetrating Tier III and IV cities, as well as potential acquisitions for the company.
On the expansion plans, Vivek Tiwari, Founder, and CEO, Medikabazaar, said,
“India is the fourth largest healthcare provider market in Asia. However, it is also highly fragmented and unorganised to a large extent. At Medikabazaar, we are aiming to contribute significantly towards organising this market and are targeting 10 percent of the organised market share by the end of the next five years.”
With a digital catalogue of more than 2,50,000 products, Medikabazaar enables hospitals and medical establishments to search for their required supplies online, compare specifications and prices. Presently the company is catering to 20,000+ hospitals PAN India via a direct presence in 23 cities. Apart from India, it also provides services to the Middle East, Bangladesh, Indonesia, and Africa.
Medikabazaar, which currently has 12 fulfilment centres across the country, plans to increase this number substantially over the next two financial years.
Founded in 2014 by Vivek Tiwari, Medikabazaar plans to clock in $100 million in revenue and achieve a 5x growth by FY 2019-20. The company also aims to increase its current strength of 250 employees substantially by the end of Q2.
Last year, Medikabazaar secured $5 million in Series A funding led by healthcare venture capital fund HealthQuad.
Medikabazaar is one among of the B2B players that are attracting investors attention. Recently, B2B ecommerce startup Udaan received fresh funding of Rs 139.5 crore from its Singapore-based parent Trustroot Internet Pte, and PepperTap Co-founder Navneet Singh led B2B retail startup GramFactory raised $1 million led by Singapore-based venture fund BEENEXT.
New York-based Tiger Global, which has made significant B2C bets in the Indian startup ecosystem in the past, has also recently turned its focus on B2B startups. Since December, it had backed startups like facilities management startup Facilio, expense management startup Fyle and SaaS mobile analytics and marketing CleverTap, all of which operate in the B2B segment.
The number of B2B startups in India more than tripled from 900 to 3,200 between 2014 and 2018, reveals a joint study by NetApp and Zinnov. In 2018, overall investment in India’s B2B startups stood at $3.7 billion.