Startups race ahead as lab giants struggle: Thyrocare's Velumani on post-Covid diagnostics churn

Dr A. Velumani, founder of Thyrocare, shared how the Indian diagnostic industry has changed dramatically since the pandemic. Drawing from a recent conversation with Redcliffe Labs, he highlighted how the sector is caught between fierce price wars and unprecedented growth.

“There’s a lot of competition. Price war. So degrowing. Largely big ones,” Velumani observed. “And at the same time, a lot of opportunity. Aggressive pricing. So growing. Largely well-funded start-ups. Both are right.”

What struck him most was Redcliffe Labs’ pace. “Had an hour of interaction on how it is going for @Redcliffe Labs. I hear a growth in 3 years a turnover that I took 15 years to reach,” he wrote. That kind of acceleration, he said, is hard to ignore—especially when many established players today are struggling to grow even in single digits, while the new-age entrepreneurs are clocking “50+% CAGR.”

 

 

 

 

But it’s not just diagnostic chains. Velumani pointed to a similar story in the vendor space, especially in clinical chemistry. “Chinese vendors have made aggressive inroads in medium-sized and small laboratories with a CAGR that is double than that of European brands which had monopoly for 3 decades.” After three decades of dominance by European brands, the playing field is shifting rapidly.

Still, he sounded a note of cautious curiosity. “Will be very interesting to watch this fast growth—will be for how long—for new entrants,” he mused.

 “Indian Healthcare Market is an Ocean,” he wrote. “The more the competition it would be merrier for the consumer. High stamina will get higher returns.”

He ended the post by thanking Redcliffe Labs COMO Prashant Nag for the enriching conversation and wished him an “impactful journey.” Coming from someone who has seen the industry evolve over decades.