Primary healthcare aggregator HealthAssure is planning to raise $4-5 million in the next three months to expand its business, launch more specialty products and digitise its operations. The seven-year old startup has raised three rounds of funding so far. In its latest round in March 2018, the company had raised $1 million pre-series A from the HR Fund.
The launch and business model
Founded in 2011 by Varun Gera, former CEO of United Healthcare, HealthAssure ties up with insurance companies to help their customers with pre-policy check-ups and other diagnosis. Customers need to download HealthAssure's app through which they can locate healthcare centres closer to them and can avail of the services. Similarly, it ties up with corporates to offer them subscription plans and flexi employee healthcare products. Gera had bootstrapped the venture with Rs 60-70 lakh.
"Healthcare sector is a wide field. Here, one doctor won't know the other. With our healthcare network, we make it easier for consumers to discover healthcare centres in their vicinity and get the services on discount. We get up to 50 per cent discount," Gera says.
Network and partners
The company currently operates a network of 3100 primary healthcare centres offering services such as dental, paediatric, ophthalmology and diagnostics across India.
HealthAssure has partnership with 70-odd corporate from Deloitte, FirstRand, Deutsche Bank to Yahoo, and 20-odd insurance companies that include Apollo Munich, ICICI Prudential, Religare, and Cigna etc. So far, it has served over 1.5 million customers and targets to service 3 million customers by 2020.
Growth so far
The start-up has turned profitable and is doubling its revenues year-on-year. It recorded revenues of Rs 30 crore in fiscal year 2018 and is well on track to hit Rs 50 crore in FY19. "We are investing more for future growth from our funding sources. Despite that, through all the years we have been more or less breaking even and last year we managed to record cash profits," he says.
Gera acknowledged that there are multiple players who connect doctors with patients, but most of them do not ensure quality, while insurance aggregators only sell policies that pay you when you get hospitalised. "They won't tell you where to get hospitalised. We, on the other hand, give consumers access to a high-quality, discounted medical network. All healthcare centres and doctors on our network are verified by us," he explains.Network is most important in the healthcare industry, points out Gera, because even in cities, one big hospital can't serve all the patients. Gera identified the need gap and decided to build an ecosystem where hospitals, doctors, and customers can come together. "As an aggregator, not only do we manage network, but also build products to suit customers' need," he says.