BUSINESS

Healthians, a diagnostic business, intends to expand internationally

This year, the diagnostics firm Healthians intends to expand its global capabilities. The firm partnered with local insurance companies and laboratories to extend its diagnostic services to many African nations in November 2023. These partners contract out complex and specialized testing that aren’t accessible in their regions. They also make sure that the pathology samples are sent, within 48 hours, to the laboratories of Healthians in India, who evaluate them and report back to these partners.

 

The demand for overseas services has increased by thirty percent for the healthtech firm since the debut of this service. In light of this, it now intends to launch its own laboratories by the end of this year in at least two nations. These will be areas where access to precise and cutting-edge diagnostic services is either limited or nonexistent.

Deepak Sahni, the CEO and creator of Healthians, said in a conversation with Fe that throughout his eighteen years in the medical field, he has seen several people go to India for operations and other consultations from nations such as Africa. However, 50% of individuals have an incorrect diagnosis. This motivated him to begin providing assistance to underprivileged nations outside of India.

“It is preferable to receive an accurate diagnosis in their home country rather than traveling here to receive a second opinion or treatment for unrelated conditions,” he said.

The business, which is sponsored by WestBridge Capital, also sees great growth potential in tiers two and three, which it attributes to unmet healthcare requirements, growing digital penetration, and growing healthcare awareness.

“Our objective is to expand our reach into additional underprivileged tier 2 and tier 3 cities, guaranteeing that high-quality healthcare services are accessible to all individuals, irrespective of their location,” said Sahni.

Currently, tiers 2 and 3 account for between 30 and 40 percent of the company’s income. Within the next year and a half, it expects the number to double. “Since COVID, the transition from unbranded to branded diagnostics, like ours, has accelerated and will only become stronger. We are certain that we will win a sizable portion of the market for the branded play since we recognize the trend in non-metros as well,” he said.

There are 131 clinical laboratory chain firms in India, including Dr Lal PathLabs, Redcliffe Labs, Thyrocare, Orchard Healthcare, and Metropolis India, according to Tracxn statistics.

Additionally, in May 2022, Healthians launched a mobile healthcare program dubbed “Health on Wheels,” which has reportedly witnessed a significant increase. Thus far, the mobile service has covered around 26,000 miles and organized more than 300 camps throughout the nation.

Healthians receives 90% of its income from diagnostic services; the remaining 10% comes from the sale of additional services and supplements. “Our goal is to develop into a comprehensive platform for preventive healthcare, going beyond diagnostics.” Our objective is to provide comprehensive health solutions that address people’s diagnostic requirements as well as assist them in managing and preserving their health via lifestyle advice, according to Sahni.

Healthians was founded in 2014 and started off as an aggregator working with several laboratories. It changed its business model in 2015 and became a pure-play diagnostics firm, setting up its own NABL and CAP-accredited laboratories. In addition, the corporation employs 1,200 phlebotomists and an ebotomy team, enabling it to strictly regulate the caliber of sample collection. Additionally, it employs more than thirty physicians and health coaches.

By the conclusion of fiscal year twenty-three, the firm broke even. As per the financial records submitted to the Registrar of Companies, the company’s operating income climbed by 34.13% from Rs 167 crore in FY22 to Rs 224 crore in FY23. When the firm started the previous fiscal year, its goal was to achieve an average revenue run rate of between Rs 450 and Rs 500 crore. “As we ended the year, our overall revenue was aligned remarkably close to our initial projections,” Sahni said when asked why it had fallen short of the goal. Nevertheless, our goals for this voyage extended beyond just meeting a revenue target.

He continued by saying that during the last 12 to 15 months, the team has focused its efforts on getting the business into a profitable position. With almost 5.5 million users, the diagnostics business has raised over 110 million in total over the course of eight fundraising rounds. When sales reach around Rs 800 crore, the healthtech business also plans to apply for an IPO.

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