Bengaluru-based Phasorz Technologies, which operates online doctor consultation platform DocsApp, has merged with digital consumer health business MediBuddy in a mixed cash and equity deal.
The businesses will continue to run as separate entities post the merger, Satish Kannan, CEO of DocsApp, said during a virtual press conference. He did not respond to specific queries on the financials of the deal.
The merged entity has also raised $20 million in a Series B round of financing led by Bessemer Venture Partners, Fusian Capital, Mitsui Sumimoto (MSIVC) and Beyond Next Ventures. Returning investors Milliways Ventures and Rebright partners also participated in the round. Part of the round was reported in May with a corpus of $9.6 million. Bessemer is a common investor in both entities.
The entity will use the funds to strengthen the doctor base, patient reach, product and technology to expand its base of direct to consumer business, according to a statement issued by the company.
“This combined entity will offer a comprehensive platform to our customers that delivers on the promise of a digital healthcare future. As first-movers, we are confident that we will establish market leadership and fulfil our mission to provide quality healthcare to every Indian,” Kannan said in a statement.
DocsApp was founded in 2015 by IIT Madras alumni Kannan and D Enbasekar for online doctor consultation. With the merger, the entity will expand its customer base to three crores. It will also expand to a database of 90,000 doctors, 7000 hospitals, 3000 diagnostic centres and 2500 pharmacies according to the statement.
DocsApp had also acquired patient-doctor engagement platform DocWise in August 2019 to add more doctors to its database.
The company declined to comment on what will be the holding company of the merger. “At this point the information is confidential. Once the formalities and paperwork are done, we will disclose the information,” Kannan said in response to specific queries on email by TechCircle.
Medi Assist Healthcare Services, the holding company of MediBuddy, also operates a suite of products for enterprise customers including digital records, healthcare at home as well as inpatient and outpatient packages and medical reimbursements. The Bengaluru registered holding company also runs Medi Assist Insurance TPA as a subsidiary. Apart from this, Medi Assist Healthcare Services is an investor in fitness app MobieFit and online pharmacy, PharmEasy.
According to filings sourced from VCCEdge, investors in Medi Assist Healthcare Services include Bessemer Venture Partners, Investcorp Private Equity Fund I, Innoven Capital and angel investors have sold their stakes to DocsApp as part of the merger.
Investments and consolidation in the space have gained momentum since the announcement of guidelines by the Ministry of Health and Family Welfare’s guidelines on telemedicine and telehealth.