Affordable healthcare chain Glocal gets $4m from SIDBI VC

The investment was made from the INR3.5 billion Samridhi Fund, which is backed by the UK's Department for International Development in association with Small Industries Development Bank of India (SIDBI), and provides capital to social enterprises.

The funding will be used to help Glocal set up 50 more 100-bed secondary hospitals in the states of Uttar Pradesh, Bihar, West Bengal, Chattisgarh, Orissa and Jharkhand.

"We have already shortlisted 43 locations and have already registered five lands. Another 22 sites are being closed shortly. We expect all these hospital to become operational over a 24-month period," Dr. Sabahat S. Azim, CEO and founder of Glocal, said.

In 2011, the company raised INR140 million from Sequoia Capital and Elevar Equity Advisors. It currently operates five facilities in rural parts of West Bengal.

Glocal's "affordable" healthcare model needs INR80 million to set up a 100-bed facility and keeps costs low by cutting down on infrastructure needs. The hospitals do not have expensive intensive cardiac units and instead of having specialists in each facility, the chain uses remote patient diagnosis via telemedicine.

It also has a subsidiary, Indigram Skills and Knowledge Initiatives, to train nursing and paramedical staff which is supported by the government's skills development corporation.

Vaatsalya Healthcare, which is backed by Aavishkaar, Aquarius India Fund, Bamboo Finance and Seedfund also operates in the affordable healthcare segment in semi-urban and rural India. It leases existing hospitals and other buildings and upgrades them to high-quality hospitals.

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