Bessemer Venture Partners-backed doctor consultation platform DocsApp has merged its services with cashless digital healthcare platform MediBuddy’s digital consumer health business to create an entity for end-to-end services in digital healthcare.
This merged entity has also raised a fund of $20 million, led by Bessemer Venture Partners, Fusian Capital, Mitsui Sumitomo (MSIVC) & Beyond Next ventures. Milliways Ventures and Rebright Partners also participated in this round.
“We are pleased to be a part of this growth journey and believe that the merger with MediBuddy is the boost it requires to provide quality healthcare to all. We will now be able to deliver services across the value chain and also have become the largest player in terms of the customer base,” said Vishal Gupta, MD, Bessemer Venture Partners said.
The combined entity will have over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres and 2,500 pharmacies covering over 95 per cent of all pin codes in India.
"The long-term vision is to be able to serve a billion Indians and ensure that high-quality healthcare is both accessible and affordable. To help achieve this faster, DocsApp merged with MediBuddy," said Satish Kannan, CEO of the merged entity. “This combined entity will offer a comprehensive platform to our customers that delivers on the promise of a digital healthcare future. Both the brands will adapt, incorporate & benefit from the strength of each other to provide high-quality healthcare to all,” he added.
Experts say mergers, acquisitions and consolidations are the way forward as several companies fail to raise funds while others have seen drop in valuations post the Covid-19 impact on the economy.
Most startups currently fall in 3 categories - companies which have been impacted by Covid-19 negatively and/or may not have been able to raise funds, those that have raised money but are seeing a 6-9 months business impact, and there are companies which are seeing a lot of growth.
“Companies in the first category are candidates for M&A. Those in the second and third category will always be looking out for opportunities to acquire or acqui-hire and expand their footprint. I further expect consolidation between large companies and startups too” said Sanjay Swamy, founding partners of Bengaluru-based Prime Venture Partners.