Update: May 7, 2020| 18:20 PM
After the story was published, DocsApp announced that it has raised $9.5 Mn (INR 72.5 Cr) from Bessemer Venture Partners India, Fusian Capital, Rebright Partners and Milliways Fund LLC. The company will utilize the funding in further strengthening its doctor base, patient reach and develop its product to move a step closer to its mission of providing
quality healthcare to all.
Bengaluru-based online doctor consultation platform DocsApp is raising a fresh round of funding as telemedicine and healthtech gain traction given the Covid-19 pandemic.
According to ministry of corporate affairs filings accessed by Inc42, the company, on April 30, approved and allotted the issue of 18,56,559 series E preference shares worth INR 72.5 Cr ($9.5 Mn). The company is issuing fresh shares at a face value of INR 15 with a final value of INR 391.03 per share.
The investors include:
- Bessemer India Capital Holdings, which is picking up 5,86,282 shares worth INR 22.92 Cr
- Rebright Partners, which will acquire 1,95,201 shares worth INR 7.59 Cr
- Milliways Fund LLC, which is picking up 1,95,427 shares worth INR 7.6 Cr
- Fusian Capital, which is picking up 8,79,423 shares worth INR 34.38Cr
However, it is to be noted that the company’s last announced fundraise was Series A, so the latest round is believed to be Series B funding. Prior to this, the company has raised $10.1 Mn from investors such as 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.
DocsApp was founded in 2015 by Satish Kannan and Enbasekar Dinadayalane. It offers an AI-powered platform to connect with more than 5000 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.
Telemedicine is expected to greatly reduce the friction in accessing healthcare services in rural areas and other parts of India that don’t have adequate infrastructure or healthcare specialists. According to DataLabs by Inc42, the telemedicine market in India is expected to reach $5.4 Bn by 2025 with a CAGR of 31%.
Given that the Covid-19 pandemic has made it impossible for many to travel to their nearest doctor, the Indian government launched guidelines for telemedicine solutions in March. Previously, telemedicine operations were governed by several statutory guidelines in India. The new telemedicine guidelines for India provide a more comprehensive framework for applications, mode of communication, medical ethics, data privacy and confidentiality, document requirements, fees, process, drug list, technological platforms and more.