KK Fund has invested an undisclosed amount in Vietnam-based healthcare startup Med247, with participation from Dr Jin Hian Goh, a former senior executive of Singapore’s Parkway Healthcare Group, according to an announcement.
Med247 operates its own clinic and integrates its technology in helping patients manage their medical records and appointments with doctors, as well as get health consultation at ease.
The company aims to open up to 10 more clinics in Hanoi, Danang and Ho Chi Minh City within the next two years, CEO Tuan Truong told DealStreetAsia.
Med247 plans to optimise the technology so that it could become the standardised platform to connect with other healthcare services providers in the future, he added.
Tuan co-founded Med247 with Dr Phong Nguyen, who brings an advantage of his doctor network and a following of more than 16,000 young parents to the company.
“Med247 is one of the very few pre-launched startups KK Fund has invested in. Starting as an onsite business first and then onboard patients online makes a lot of sense and is much more effective in this particular industry. We are now proving this hypothesis,” said Koichi Saito, founding partner of KK Fund.
“The medical practice in Vietnam follows the traditional model where it’s doctor and hospital-centric. We want to re-imagine healthcare whereby it becomes patient-centric, empowering our patients to understand their health status, and the ease to receive healthcare delivery in a timely and efficient manner,” said Truong.
Vietnamese have little access to public healthcare for general diseases, so people in major cities are opting for the private system. Healthcare spending in the country is estimated to increase to $20 billion in 2020 from $16.1 billion in 2017, according to KPMG. However, Vietnam has only 72 doctors per 100,000 citizens, compared to Singapore’s 230, according to World Bank data.
“While the level of healthcare technologies and treatments is world-class in Japan, surprisingly, the healthcare industry’s practice is still quite traditional and has not made the digital transformation significantly, lagging far behind the US and China. I see similar situations in Vietnam, with so much room for improvement in terms of digitalisation,” said Saito.
Med247 is the second Vietnam-based investment KK Fund has announced, following a $710,000 seed round the firm led in recruitment startup Jobhop in late 2018.