Indonesian digital health startup Alodokter on Friday announced that it has raised $9 million led by SoftBank Group Corp’s Korean venture capital unit, SoftBank Ventures Korea. Existing backer Golden Gate Ventures and Feng He also participated in the round – the third after a US$2.5 million led by Golden Gate in 2016.
DEALSTREETASIA had on November 6 reported about the Indonesian startup’s expected fundraising led by SoftBank in an exclusive story.
Alodokter CEO and founder Nathanael Faibis said the startup will use the fresh funds to “consolidate its leading position”, and develop a fully integrated healthcare ecosystem for patients to manage their lifestyle, chat with doctors, handle their medical records, or book offline medical services.
“We want our app to become top of mind for patients when they have a medical issue. By managing so much information about patients, doctors and service providers, we are gradually building a much more efficient solution than traditional methods to find the right solution for patients,” Faibis said in a statement.
Alodokter has been developing its AI-assisted chat app with doctors, which it claimed had answered more than 250,000 patients every month in Indonesia. More than 350 doctors are available on the platform.
“Our big bet was that online market demand would go for chat interaction with doctors. User reception has been very impressive. We believe that a mix a AI and real doctor interaction is the future of healthcare online,” Faibis went on, adding that the company is now gathering one of the largest databases of patient-doctor interactions in the world.
Founded in 2014 by Faibis, Alodokter now boasts over 16 million monthly active users. It offers content about health, well-being and family. IT is also running a similar service in Thailand with pobpad.com.
Currently, Alodokter sees competition from local rivals Dokter.id, MeetDoctor, KlikDokter, and 1Health, apart from Halodoc.
This portal had in June reported that Alodokter and its competitor Halodoc were in talks with international players to secure Series B round of funding. Halodoc, whose series A round in 2017 was joined by ride-hailing giant Go-Jek, was said to be looking at raising over $15 million by early next year.
Indonesia’s healthcare expenditure is expected to grow from $26 billion in 2014 to $51 billion by 2020. The sector is currently dominated by out-of-pocket spending that constitutes about 75 per cent of total transactions. With such low insurance-covered expenditures, there is an opportunity for direct-to-consumer play to optimize the value chain in healthcare. Many international investors are excited at this opportunity, given that such problems could be solved through advances in technology.