Bengaluru-based online doctor consultation platform DocsApp has acquired MediBuddy, a cashless digital healthcare platform for an undisclosed amount in a cash-and-stock deal. Both the brands will continue to exist independently, DocsApp CEO Satish Kannan said.
The joint entity will cater to the needs of 3 cr consumers with 90K registered doctors, 7K hospitals, 3K labs and 2.5K pharmacies on the platform. Kannan said that 50% of customers are from Tier 2 and small towns and remaining from top-tier cities.
Meddibuddy, which was founded in 2000, claims to have helped more than 5 Mn corporate employees make informed healthcare decisions.
Earlier in May, DocsApp raised $9.5 Mn (INR 72.5 Cr) from Bessemer Venture Partners India, Fusian Capital, Rebright Partners and Milliways Fund LLC. Prior to this, the company has raised $10.1 Mn from investors like InnoVen Capital, GSF Accelerator, IIT Madras Incubation Center, Paytm founder Vijay Shekhar Sharma, Shaadi.com founder Anupam Mittal and Srikanth Sundararajan of Helion Venture Partners.
The company has now announced that the joint entity has closed the round at $20 Mn Series B funding round led by Bessemer Venture Partners, Fusian Capital, Mitsui Sumitomo and Beyond Next Ventures. Existing investors Milliways Ventures and Rebrights Partners also participated in the round.
The joint entity will use the funding to strengthen the doctors’ network across the country and develop core technology products and services to provide high-quality healthcare.
DocsApp was founded in 2015 by Kannan and Enbasekar Dinadayalane. It offers an AI-powered platform to connect with more than 10K specialist doctors for consultations over video calls, voice calls and an in-built chat application.
DocsApp connects patients to specialist doctors across 20 departments such as dermatology, weight management, sexology and more. It also allows users to order medicines and book diagnostic tests online. DocsApp claims to have a user base of 10 Mn and provide 200K consultations per month across the country.
Talking about Covid-19 related journey, Kannan said that the company has grown 60% in the last two months. Kannan added that among daily users, 60%-70% are primarily for connecting with doctors and remaining are for ordering medicines and diagnostics.
Telemedicine is expected to greatly reduce the friction in accessing healthcare services in rural areas and other parts of India which lacks adequate infrastructure or healthcare specialists. Kannan said that the new telemedicine guidelines require a lot of clarification and the company is working with the government for the same. According to DataLabs by Inc42, the telemedicine market in India is expected to reach $5.4 Bn by 2025 with a CAGR of 31%.