Exclusive: MediBuddy To Raise $8.4 Mn Debt Funding To Fuel Expansion Plans

Bengaluru-based healthtech startup MediBuddy is raising $8.4 Mn (about INR 70 Cr) debt funding from existing debt investors, including Innoven Capital and Alteria Capital, Inc42 has learnt.

Confirming the development, the startup told Inc42 that the funds would be used for sustained growth and potential acquisitions. 

“MediBuddy is strategically raising INR 70 Cr in debt from our trusted existing debt partners. Our core business remains financially robust and does not require immediate capital, this initiative is a vital component of our comprehensive business strategy to further fuel expansion,” a MediBuddy spokesperson said in a statement. 

The spokesperson added that the debt funding will enhance its cash reserves for new strategic priorities. 

MediBuddy also claimed in the statement that it closed FY24 with a marginal loss and approached EBITDA neutrality. Now, it is focussed on acquiring companies within key healthcare sectors, including women’s health, mental health, diabetes, and chronic disease management. 

“… To enhance our cash reserves for new strategic priorities, we are undertaking this debt raise, which is non-dilutive to our equity… This infusion of capital will enable us to continue investing in innovative healthcare solutions, expanding our reach, and enhancing the quality of our services,” the statement added.

The fresh debt infusion comes almost nine months after the startup bagged $18 Mn from its existing investors, including Qadaria Capital, Lightrock, and TEAMFund, for expansion and strategic acquisitions. 

Founded in 2015 by Satish Kannan and Enbasekar Dinadayalane, MediBuddy offers doctor video consultations, end-to-end surgery care, online lab test booking and medicine ordering services. Besides this, the startup also offers insurance solutions with the help of Medi Assist.

MediBuddy claims to have a network of over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres, and 2,500 pharmacies, covering almost 96% of Indian pin codes. The startup currently claims to have a customer base of over 3 Cr. 

With the latest fundraise, the startup’s combined equity and debt funding would increase to about $218 Mn. The soonicorn startup counts the likes of Bessemer Venture Partners, India Life Sciences Fund III, Rebright Partners, JAFCO Asia, and TEAMFUND LP among its backers. 

MediBuddy directly competes against the likes of Tata-owned 1mg, Practo, and Reliance-owned Netmeds in the burgeoning Indian market. 

Telemedicine startups saw a stupendous increase in demand with the onset of the Covid-19 pandemic. On the back of this, a number of healthtech startups raised capital to expand their offerings and infrastructure.

However, these startups saw a sharp decline in their user base after the pandemic subsided, resulting in many healthtech startups shutting down. Manipal Group-backed Phable, and MojoCare were among the startups which shut operations. 

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