Doctor Anywhere, a Singapore-based online healthcare platform, has raised $27 million in a Series B funding round led by Square Peg Capital, EDBI and IHH Healthcare, Asia’s largest hospital operator. The round was also joined by Temasek subsidiary, Pavilion Capital and existing investor, Kamet Capital. The company last raised a $4.1 million in a Series A round in July 2018.
The close of Doctor Anywhere’s fundraise comes amidst spiking interest in online healthcare as researchers, doctors and entrepreneurs from around the world scramble to produce a vaccine for the deadly COVID-19 virus. Widespread coverage on the coronavirus has also triggered a sharp increase in demand for telehealth services.
Online engagement on Doctor Anywhere’s platform has risen by over 70 per cent, while overall sales have surged two to threefold since the COVID-19 outbreak began to intensify in January. However, the bleak fundraising climate is also forcing its CEO and founder, Lim Wai Mun, to strike an uneasy balance between cash conservation and aggressive growth.
“It’s something that is on my mind over the past few days,” shared Lim over the phone. “We are obviously experiencing very high growth right now, but unfortunately, the capital market is also shut. We shouldn’t be spending the money too quickly if we don’t know how quickly we can raise money again. We must be very focused on the unit economics at the operational level to make sure that whatever that we do, we are still making money.”
Lim continued: “It’s a very difficult and delicate balance between unit economics and aggressive growth, but I believe if we can prove this to our investors, I’m sure they will be prepared to go even longer with us.”
He added that while this is a full equity round, the company is open to raising debt in a few months to support its growth if required. Meanwhile, the fresh funds will be used to strengthen Doctor Anywhere’s presence in existing markets across Singapore, Vietnam and Thailand and invest in its growing technology and data team.
It is also eyeing expansion into Malaysia and the Philippines in Q2 this year. It has no plans to enter Indonesia, Southeast Asia’s most populous market, due to mix of factors including the presence of established competitors such as Halodoc and Alodokter.
Doctor Anywhere’s flagship product is telehealth, where patients are linked to its network of licensed doctors for an online consultation. Apart from this, the Singaporean company also operates a virtual clinic and an online marketplace where it sells everything from vitamin C tablets to traditional Chinese medicine (TCM) acupuncture consultations.
About 50 per cent of its revenues come from online sales across telehealth, virtual clinic and its online marketplace, while the remaining 50 per cent comes from its offline partnerships with other doctor networks.
Doctor Anywhere has over 1,300 general practitioners (GPs) and specialists on its network and serves over one million users across its online and offline platforms in Southeast Asia.