Digital healthcare platform Practo has secured as much as $32 million in a fresh round of funding led by Chinese life insurance conglomerate A1A Company, per a report by Entrackr.
The funding in the company has come in after a gap of three years with at least a 50 per cent haircut in its valuation, added the report.
A1A Company is understood to have pumped in $20 million in the company, while the remaining amount has been pumped in by a slew of investors namely Tencent, Sequoia Capital, Sofina Ventures, Matrix Partners, Google’s venture capital arm G Capital and RTP Global.
Paracto, established in 2008, is considered one of the early ones to have forayed into the burgeoning healthtech space in India. It helps consumers find doctors, book diagnostic tests, obtain medicines, store health records, besides enabling them to learn new ways to live healthier on its platform.
Practo last raised funding in its Series D round in January 2017 at a valuation of $620 million. In the current round, however, the company seems to have garnered a valuation of $300-$310 million, stated the report.
Even as startups have been garnering funding in hordes, a slew of them stares at challenges in terms of scaling up their operations. That results in a drop in their valuation.
Since the new investment has flown into the company at a heavily discounted valuation, “anti-dilution clauses have been put in place to protect the interests of its early-stage backers, stated the Entrackr report.
Of late, healthtech startups have been grabbing the attention of private equity investorsas social distancing norms have created a significant demand for them in the past few months.
Sectors that are witnessing traction are telehealth, e-pharmacies, B2B e-commerce, digital therapy, online fitness, clinical intelligence platforms, and patient triaging, among others.
Currently, the doctor-patient ratio in India is abysmally low, standing at 1:1400. “This is where home healthcare and telemedicine services have the potential to become force multipliers.
According to data available with research firm Venture Intelligence, private equity and venture capital firms have invested $1.14 billion in healthtech startups since 2018.
Practo, one of the well-funded start-ups in the online medical care space, competes with NetMeds and Portea, among others.