Singapore-based MyDoc, a regional digital health startup, has raised $5.2 million in a Series A funding round led by UST Global, a provider of end-to-end IT services and solutions for Global 1000 companies. Other investors include cross-border early stage venture capital firm Wavemaker Partners.
Investment proceeds from the Series A round will fund the development of MyDoc@Work, a digital healthcare platform which provides corporate employees with a wide range of health services – video consultation with doctors, online prescriptions, online medical certificates (MyMC), on-site health screenings and a private care network.
The private care network provides access to dental, physiotherapy, eye health, and fitness services at no additional cost.
An additional focus will be on the continued development of health-focused insurtech solutions based on MyDoc’s proprietary technology. With the largest network of private insurers already secured, the focus is shifting towards improving and expanding services to benefit both policyholders and payors.
This will see the firm establish an insurance technology department with a dedicated technology solutions team focused on the automation of the health insurance process. This department will oversee comprehensive data analysis to enhance the delivery of personalised care.
Current clients include Asia’s largest insurers such as AIA, AXA and Aetna and other partners including the Health Promotion Board (HPB), Guardian Pharmacy, AcuMed Medical Group and Farrer Park Hospital.
In an official statement, Dr Snehal Patel, CEO and Co-Founder of MyDoc, said, “We see increasing corporate and insurer demand for digital health solutions like MyDoc. According to Accenture Consulting, as many as 63 per cent of consumers say technology plays an important role in healthcare. This funding is a strong boost for us to meet this demand by expanding our services throughout Asia and enter new markets.”
He told DEALSTREETASIA that at this time, the firm had “approached a stage where break-even is around the corner” but continued to emphasise growth over positive cash flow and profitability due to market conditions and to build a stable core business.
He explained: “We want to remain committed to accelerating our growth in the market, so we can capitalise and capture the market while there is the opportunity.”
Future growth & exit?
The partnership with UST Global will enable MyDoc to tap into the company’s technological capabilities and expertise, as well as grow the business through UST Global’s distribution channels.
Krishna Sudheendra, CFO of UST Global, commented: “MyDoc will complement our suite of digital offerings and we strongly believe that this investment and partnership with MyDoc will create significant value to our customers in their digital transformation journey.”
With regards to future financing, in an email exchange with this portal, Dr Patel said, “Based on our current growth and potential we see in the market, we don’t have a fixed number in mind. Even after 5 years, we’re seeing double-digit growth month-on-month, and are expanding our services into the rest of Asia. We’re fully aware that based on our rate of expansion, we’re likely to require more capital to fund our growth, so it isn’t possible to confidently predict how much funding we would need in the long term.”
According to Dr Patel, the Series B round will “depend on MyDoc’s traction in some of the larger growth markets” that the firm has identified, such as Malaysia, India and China. The value of the Series B will be dependent on our growth potential.”
With regards to an exit, Dr Patel explains: “We are open to several outcomes. This would include a potential IPO locally, trade sale to large healthcare groups, or by major private equity funds considering the healthcare industry. As mentioned earlier, ultimately the exit route is dependent on our growth and how we see the industry progress and evolve.”