CDC joins $75m round for India medical B2B marketplace
CDC Group has contributed $27.5 million to a $75 million Series C round for Medikabazaar, an Indian medical B2B marketplace and COVID-19 supply chain operator.
The UK development finance institution described the deal as an impact investment, contributing to UN sustainable development goals targeting improved access to medical supplies and economic opportunities. It comes as COVID-19 has exacerbated existing stresses on India’s fragmented healthcare system, causing a supply-demand crunch.
The investment will support delivery of masks, personal protection equipment kits, oxygen concentrators, and ventilators, as well as accelerate efforts to help the local medical establishment augment its critical care facilities in preparation for a third wave of infections. About 50% of Medikabazaar’s sales are to smaller hospitals and nursing homes, and around 60% of its customers live outside metro areas.
“Ever since the pandemic, the need for healthcare infrastructure services has grown exponentially,” Vivek Tiwari, Founder & CEO, Medikabazaar, said in a statement. “The last fiscal has seen a remarkable rise in our operations. With over 100,000 medical establishments, over 150,000 independent medical professionals and more than 15,000 seller partners already on board, we are aiming for a 300% growth through [financial 2022].”
The Series C was led by Creaegis, an Indian private equity firm set up in 2019 by Prakash Parthasarathy, previous CIO of tech-focused family office Premji Invest. Creaegis described the round as its first investment in a social media post.
Existing backers Rebright Partners and Mitsui Sumitomo Insurance Venture Capital of Japan, Ackermans & van Haaren and Kois Holdings of Belgium also participated, as did India’s HealthQuad Advisors. It brings funding in the past three years to more than $128 million, with recent investors also including strategic players such as Japan’s Toppan Printing and Sasaki Foods.
Medikabazaar is a comprehensive supplier to the sector with services spanning disposable items such as gloves and syringes to lab equipment, electronic devices such as x-rays and CT scanners, pharmaceuticals, dental tools, medical implants, surgical instruments, and physiotherapy aids. In addition to shoring up local infrastructure to stem COVID-19, it will pursue a global expansion.
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