[Funding alert] Healthcare startup Medikabazaar raises $15.8M in Series B round
According to Medikabazaar, the funds will be used for expansion into Tier II and III cities, technology enhancement, last-mile supply chain efficiency, and building its employee base.
B2B platform for medical supplies Medikabazaar on Monday said it had raised Rs 112 crores ($15.8 million) in its Series B funding round, led by healthcare-centric VC firm Health Quad, Belgium-based Ackermans & van Haaren (AvH), and Rebright Partners and Toppan Printing Co Ltd from Japan.
Existing investors CBC Co Ltd, Elan Corporation, Mitsui Sumitomo Insurance Venture Capital, Kois Invest from Belgium, and angel investors Sunil Kalra and Arun Venkatachalam also participated in the round, along with a few other prominent angel investors.
According to the startup, it will use the funds from the current round to augment its technology capabilities, build supply chain infrastructure, and strengthen its team.
Speaking on the funding, Vivek Tiwari, Founder and CEO, Medikabazaar, said,
“At present, Medikabazaar has 17 fulfillment centres pan India, and the current investment will help us grow this number over the next few years by establishing a larger number of distribution hubs. So far, we have seen an extremely positive response to our efforts, and our growth over the past year is a testament to this. We are happy that HealthQuad, Ackermans & van Haaren, Rebright and Toppan, along with our existing investors, trusted us and have joined us on our journey.”
With the current investment, the company plans to diversify into categories such as devices for vascular surgery, ENT, laser devices for varicose veins, gynaecology, interventional radiology, and OT environment safety. The company also has plans to foray into pharma supplies on a large scale.
Commenting on the investment, Charles-Antoine Janssen, Chief Investment Officer, HealthQuad, said,
“Inefficiency in the supply chain continues to ail the ability of healthcare providers to deliver quality care at an affordable price. Medikabazaar has created a tech-enabled B2B medical supplies platform providing transparent and efficient supply chain management solution for healthcare providers in India. We remain committed to support the company’s robust future strategy of leveraging economies of scale, deriving data insights to automate inventory management, and deepening market penetration.”
Medikabazaar has leveraged its proprietary AI- and ML-based smart inventory tool, ‘VIZI’, to streamline inventory management for numerous healthcare providers across the country.
The company’s current focus is on optimising its fulfillment capabilities for better delivery management, especially across Tier II and III cities and rural areas.
John-Eric Bertrand, member of the executive committee of AvH, said,
“As a long-term investor, we, at Ackermans & van Haaren, look forward to supporting Medikabazaar’s outstanding management team in fulfilling its vision of making quality healthcare products more affordable and accessible in India. Medikabazaar’s offering addresses the challenges currently faced by many Indian healthcare providers related to procurement and inventory management, such as ordering from multiple vendors, lack of adequate information on products and pricing, inventory shortages, and inefficient logistics.”
In its Series A round in October 2018, Medikabazaar had previously raised funds from HealthQuad, Kois, Rebright, MSIVC, CBC Co Ltd, Elan Corporation, Sasaki Foods, Sunil Kalra, and Arun Venkatachalam. This investment amounting to $5 million was followed by an undisclosed amount of funding raised earlier this year from prominent industry leaders Karan Singh, MD, Bain & Co, and Arpan Sheth, Partner, Bain & Co, apart from other angel investors.
The startup is now targeting $100 million in revenue and 5X growth by the end of the current financial year.
(Edited by Athirupa Geetha Manichandar)