MediBuddy secures USD 18M funding; eyes acquisitions in mental health sector

Leading telehealth player MediBuddy is actively pursuing acquisitions in the chronic and mental health sectors.

In a conversation with Moneycontrol, MediBuddy Co-founder and CEO Satish Kannan talked about the scope of telemedicine in India and the company’s strategic focus.

“Our areas of interest encompass mental health, obesity, weight management, and women’s health,” Kannan said. He added that the company is evaluating companies in the segment currently.

He expects the company’s core business to turn profitable by March 2024. “We will then reach EBITDA neutrality while sustaining our growth trajectory,” he said.

MediBuddy secured an additional $18 million in funding from existing investors, including Quadria Capital, Lightrock, and TEAMFund in August. The company earmarked these funds for acquisitions, redirecting them toward relevant segments as their core business achieves profitability. In recent years, MediBuddy acquired Clinix, an online doctor consultation platform in 2022, and vHealth in 2023, to focus on serving rural India.

Post-Covid boom
The management has noted that telehealth has recovered from its post-Covid decline. “In Covid, people were forced to do medicines and tests online. After that went away, though it reduced a little, it has come back significantly and it has crossed Covid numbers today,” Kannan said. People have identified the time and effort which can be saved by online consultation and are preferring online consultations over offline, he said.

MediBuddy offers both online and offline services and has partnerships with over 90,000 doctors, 7,000 hospitals and clinics, 5,000 medical diagnostic laboratories, and 2,500 pharmaceutical stores.

Access to healthcare remains a significant challenge in India, and MediBuddy’s primary mission is to facilitate faster access to healthcare services. “We ran with the slogan ‘bade sheher ke doctor se baat karo’,” (talk to a doctor in the city) understanding this gap. He said that 60 percent of their current customers come from big cities and the rest come from very small towns. In bigger cities and towns, all services are strong. “The smaller the town you go to, online doctor services get stronger,” Kannan said.

Kannan said that the size and scope provide the edge for the company. He claimed that the second biggest player in the segment would be about a fifth the size in terms of revenues.

Kannan stressed the importance of an omni-channel approach for Indian telehealth services. Limiting services to online-only or appointment bookings restricts customer options. Embracing paperless patient records is also crucial for seamless service delivery, aligning with the central government’s Ayushman Bharat initiative, aimed at paperless and cashless healthcare services.

Regarding the role of AI in clinical processes, Kannan highlighted the potential for AI to streamline data collection and patient background creation. He underscored the benefits of reducing the time required for this critical phase of healthcare delivery by leveraging AI services. Moneycontrol