The pandemic has exponentially increased the importance of quality healthcare, physically as well as digitally according to an Inc42 Plus report. Amid the growing importance of healthcare infrastructure, Bengaluru-based healthcare startup Ayu Health, a hospital network, has raised $6.3 Mn in Series A round led by Vertex Ventures and Stellaris Venture Partners.
The round also saw participation from angel investors including Mamaearth’s Varun Alagh, Helion’s Ashish Gupta and EyeQ Hospitals’ Rajat Goel among others.
The startup plans to use the funds to expand its hospital network, build its tech solutions to enable insurance processing, procurement and clinical quality management. Ayu Health further aims to grow its business 10x in FY22 and expand its bed capacity to 5,000+ beds in 6 cities by December 2022.
Founded in 2020 by Himesh Joshi, Arjit Gupta and Karan Gupta, Ayu Health currently has a chain of 20 hospitals with 1000+ beds in Chandigarh and Bengaluru. Through its network of hospitals, it provides healthcare for patients ranging from multi-speciality, super-speciality, eye-clinic, among others. Through the aggregation of doctors, the startup provides an operating system to their hospitals including non-clinical services like marketing, patient management, insurance processing, procurement, etc.
Ayu Health founders have previously built the used-goods marketplace Zefo, which was acquired by Quikr in 2019.
The Indian healthtech market is estimated to touch $21 Bn by 2025, which is just 3.3% of the total addressable healthcare market pegged to reach $638 Bn in 2025.
Healthtech startup funding in FY 2020-21 went down by more than 43% ($443 Mn raised in FY 2020-21 compared to FY 2019-2020’s $790 Mn). But, with $689 Mn invested during the first four months of 2021, the sector has already raised 30% more funding than the entire 2020.
The lion’s share of this year’s healthtech funding was cornered by two unicorn rounds. Innovaccer got $105 Mn in February this year and PharmEasy raised $350 Mn in April to enter the coveted unicorn club.