B2B medical supply platform has raised $65 million in a fresh round led by Lighthouse India Fund III.
Lighthouse has invested $30 million (Rs 225 crore) in Medikabazaar along with participation from existing investors Creaegis, Health Quad, Ackermans & van Haaren, British International Investment (formerly CDC) and KOIS Holdings.
The startup said the funding will be used to strengthen its technological capabilities, deepen the supply ecosystem and digital driven distribution channels, bolster digital operating capabilities to help improve efficiency of the healthcare sector in India and expand their global operations, the company said in a statement.
Founded in 2015 by Vivek Tiwari and Ketan Malkan, Mumbai-based Medikabazaar is an online B2B marketplace for medical devices and supplies. The company has presence in several smaller cities in India, covering over 20,000 pin codes.
“We continue to invest heavily in our tech capabilities and operations to make healthcare available, accessible, and affordable in India and replicate our success in international markets. The funding will enable us to expand and deepen our presence in the Indian health-tech sector and also help power our global ambitions” said Vivek Tiwari, Founder, Medikabazaar.
The startup said it has raised growth capital to scale up its existing product verticals and infrastructure with a technology interface and pursue domestic and international acquisition opportunities.
“The highly fragmented and inefficient medical distribution industry gives Medikabazaar fertile conditions for growth and scale. Medikabazaar has proven to offer sustainable solutions to OEM and healthcare delivery partners, and we believe the company will continue to maintain its pole position in the industry,” said Rochelle Dsouza, Managing Director at Lighthouse Advisors.
Fueled by the growing demand from healthcare delivery providers and partnerships with domestic and international medical device and consumable brands, Medikabazaar has grown its sales at a magnitude of 25x over the last three years, the startup said.
According to IBEF, India is among the top 20 markets for medical devices worldwide. The market is expected to increase at a CAGR of 37 percent to reach $50 billion in 2025 from $10.36 billion in 2020.
The healthcare and medical device sectors have grown significantly in the last decade. There is a huge gap in the current demand and supply of medical devices in India and this provides a significant opportunity for manufacturing devices in India, the report added.
Edited by Megha Reddy