B2B medical supplies platform Medikabazaar has raised $15.8 million in a Series B round led by existing investor Healthquad, Belgium-based diversified group Ackermans & Van Haaren, venture capital firm Rebright Partners and Japan headquartered printing major Toppan Printing Co.
Existing investors CBC Co, Ireland-based Elan Corporation, Japan’s Mitsui Sumitomo Insurance Venture Capital, Belgium-based Kois Invest, and angel investors Sunil Kalra and Arun Venkatachalam participated in the round.
In October 2018, healthcare sector focused venture capital firm Healthquad invested $5 million in a Series A round in the healthcare startup along with the other returning investors. In 2017, the company raised $1 million in a seed round round from Kalra and Venkatachalam.
Medikabazaar, which is owned by Mumbai-based Boston Ivy Healthcare Solutions, will use the funds raised in the latest round to improve the platform, supply chain infrastructure and hire talent. The company also plans to diversify into categories such as devices for vascular surgery, laser devices for varicose veins, gynaecology, and interventional radiology.
It has set a target of $100 million in revenues and five-fold growth by the end of 2019-20 by focusing on optimising its delivery management, especially in the Bharat cities and rural areas. “We are aiming to secure 10% of the organized market share by 2025, and will continue to channel our efforts towards this goal, with a key focus on smaller cities and remote areas,” said Vivek Tiwari, founder of Medikabazaar.
Founded by Tiwari and Ketan Malkan in 2015, the platform claims to be a marketplace for over 300,000 products and 17 fulfilment centres with reach in last mile areas, through its suppliers and distributors. It claims to reduce price discovery costs of medical supplies for hospitals and medical establishments as they can avoid going through multiple channels to get quotes.
“The company has validated our strong use case hypothesis, which has translated into rapid business ramp-up and high repeatability. We remain committed to support the company’s robust future strategy of leveraging economies of scale, deriving data insights to automate inventory management and deepening market penetration,” said Charles-Antoine Janssen, CIO of Healthquad.