B2B online marketplace for medical equipment and supplies Medikabazaar has raised about $15.8 million (Rs 112 crore) in its Series B round of funding led by healthcare-centric VC firm HealthQuad, Belgium-based Ackermans & van Haaren, Rebright Partners & Toppan Printing Co limited from Japan.
Existing investors CBC co., ltd., Elan Corporation, Mitsui Sumitomo Insurance Venture Capital, Kois Invest from Belgium, angel investors Sunil Kalra and Arun Venkatachalam also participated in the round, along with a few other prominent angel investors.
The funding is in line with Medikabazaar’s plans for rapid expansion and product diversification, with a target to reach $100 million in revenue and 5X growth by the end of the current financial year, it said in a statement.
The funds from the current round will be used to augment its technology capabilities and supply chain infrastructure as well as building its team strength. The company’s current focus is on optimising its fulfillment capabilities for better delivery management, especially across tier 2, tier 3 cities and rural areas.
Vivek Tiwari, founder and CEO, Medikabazaar, said, “At present, Medikabazaar has 17 fulfillment centres pan-India, and the current investment will help us grow this number over the next few years by establishing a larger number of distribution hubs.”
“We are aiming to secure 10% of the organized market share by 2025, and will continue to channel our efforts towards this goal, with a key focus on smaller cities and remote areas,” he added.
Founded in 2015 by IIM alumnus Tiwari and serial entrepreneur KetanMalkan, Medikabazaar had earlier raised $5 million in a funding round led by Quadria Capital-backed HealthQuad, followed by an undisclosed amount of funding earlier this year from prominent industry leaders Karan Singh, MD, Bain & Co & Arpan Sheth, Partner Bain & other angel investors.
The company claims to have over 300,000 products on its platform relating to oncology, neurology, dentistry, minimally invasive diagnostics and other therapeutic areas. The company further plans to diversify into other categories such as devices for vascular surgery, ENT, laser devices for varicose veins, gynaecology, interventional radiology and OT environment safety.
The company also has plans to foray into pharma supplies in a large manner.
John-Eric Bertrand, a member of the executive committee of AvH: “Medikabazaar’s offering addresses the challenges currently faced by many Indian healthcare providers related to procurement and inventory management, such as ordering from multiple vendors, lack of adequate information on products and pricing, inventory shortages and inefficient logistics.”
