INDIA – Diagnostic chain Redcliffe Labs has initiated the process of raising US$200 million from private equity investors.
Last year, the company raised US$10 million in its Series A funding round.
Redcliffe Lab is a pathology solution provider. It has multiple testing facilities, including full-body check-ups, genomics, and specialized genetics, Covid tests, blood sugar, prescription-based tests among others.
The company expects to complete the fundraise by the end of this year. “We are at the start of the largest round of diagnostic financing of around US$200 million,” Dheeraj Jain, founder of Redcliffe Labs, told Economic Times.
Jain said the proceeds will be largely used for inorganic expansion into radiology testing.
“We are very keen to acquire regional (radiology testing) chains who already have a footprint, so that we can bring our quality, aggression and latest technology, to scale up the business,” Jain said, adding he had begun scouting for potential targets of acquisitions.
In May, Redcliffe announced it had raised US$61 million as part of series B led by LeapFrog Investments (LeapFrog), with participation from Healthquad, Schroders, LC Nueva, Growth Spark Ventures and existing investors Chiratae Ventures and Alkemi Venture Partners.
Jain said the investment will be used for pan-India expansion, providing low-cost but high quality direct-to-consumer (D2C) blood tests into tier 2, 3 and 4 towns and cities, along with scaling up Redcliffe’s platform and increasing its product offerings to radiology, disease data profiling and lifestyle management.
Redcliffe Lab is a pathology solution provider. It has multiple testing facilities, including full-body check-ups, genomics, and specialized genetics, Covid tests, blood sugar, prescription-based tests among others.
Founded in 2018, Redcliffe has a network of 22 labs across 14 cities. It also has a team of key opinion leaders in the pathology sector who oversee operations and quality.
In addition, the company has a fleet of 400 phlebotomists operating in more than 100 cities with home sample collection and offline network of 500 collection centers.
“There are at least 30-40 regional (radiology lab) assets in India,” Jain said and he expects his company would be closer to becoming a unicorn with the infusion.
According to Jain, the company’s annualized revenues run rate stands at around US$55-60 million.
Orange Health forays into New Delhi
Meanwhile, Orange Health, a leading health-tech start-up building India’s fastest diagnostic lab service has launched its services in New Delhi as part of its ambitious geographical expansion plan.
With this launch, customers across the NCR region including Gurgaon, Noida, Delhi, and Ghaziabad can now avail a wide range of diagnostic services in just 60 minutes from the comfort of their homes, with reports in six hours.
At Orange Health, customers can get tested for over 1,000 diagnostic tests comprising both routine and specialized ones ranging from biochemistry, serology, hematology, flow cytometry, and molecular biology to COVID RT-PCR will be part of Orange Health’s offerings in this region.
For catering to the people of New Delhi with the best quality diagnostics services at speed, Orange Health already has two operational labs in NCR with another one likely to be operational in the near future.
With an agile and efficient supply chain, customers will receive their test reports from the company’s state-of-the-art, NABL accredited labs in just 6 hours from the time of sample collection.
According to various industry estimates, NCR has been ranked as the biggest market for diagnostics services with US$450 million in annual value.
With Orange Health foraying into the Delhi-NCR market, the Bengaluru-headquartered healthtech startup is likely to see exponential growth in its customer base and top line in the coming months.
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