Healthcare start-up LifCare raises $1 million
New Delhi: Corner Store Technologies Pvt Ltd, which runs healthcare start-up LifCare, on Monday said it has raised $1 million in a round led by angel investor Rajul Garg.
Garg has invested in a handful of other healthcare start-ups, including Healthkart, Qikwell and HealthAssure.
Other investors who participated in this round are Kunal Shah, chief executive officer of Freecharge, Dheeraj Jain, partner at Redcliffe Capital, a UK-based hedge fund, Alok Mittal former managing director of venture capital firm Cannan Partners, Mohan Lakhamraju, former managing director of venture capital firm Tiger Global and Rishi Mandawat, principal at private equity firm Bain Capital.
The company will use the fund to expand to new cities, technology enhancement and team expansion.
“We intend to use the funds to go deeper into Jaipur and get product market fit completely solved in one city. We will look to expand in two other cities in next 2-3 months,” said Krishna Killa, co-founder of LifCare.
The company which currently had 45 employees, plans to double the strength during the same period.
LifCare was launched in September 2015 by Killa, a former associate at Bain Capital, Rohit Mohta, a former executive of pharma company Cipla and Deepesh, a former executive of Wipro Ltd.
The company delivers medicines to subscribed customers. Customers need to call on the service centre number. LifCare sends its pharmacist to the customer’s house who verifies the prescription of the doctor. The medicines are delivered by the delivery boys owned by the company.
The customers have to register themselves once and they are sent refills at constant intervals. It has a pharmacist licence and procures medicines from distributors. The delivery takes place from its warehouse.
However unlike the e-pharmacy startups present in the market such as Netmeds or Zigy, that deliver medicines across different segments LifCare is focussing only on the chronic medicines.
“We believe this business model is much more scalable as compared to e-pharmacies which most of our peers operate. It assures high repeat usage as compared to acute medicine,” said Killa. It claims to have over 3,000 subscribers already. However he declined to disclose the number of orders generated on a monthly basis.
The country is witnessing a growth in lifestyle ailments massively. Issues such as cardiac problems or diabetes, are rising sharply, thus entailing lifelong treatment. According to Killa, medicines is Rs.1 trillion market of which 50% currently comprise chronic medicine.