Practo to raise Rs. 60 Cr debt from Trifecta Venture Debt Fund II
Telemedicine startup Practo is looking to raise INR 60 Cr in debt from Trifecta Venture Debt Fund II, the company’s filing with the Ministry of Corporate Affairs revealed.
The filing said the company will raise the debt by issuing 600 unlisted, secured, redeemable, non-convertible debentures (NCDs) at a subscription price of INR 10 lakh each. The company will raise the funds in at least six parts.
So far, the Bengaluru-based startup has raised $228.2 Mn in seven funding rounds, with a $32 Mn Series D round in August last year.
The company had also raised venture debt in September 2019, to the extent of INR 120 Cr from Trifecta Capital and other investors.
Established in 2008 by Abhinav Lal and Shashank ND, Practo is a mobile-first health platform that connects patients with healthcare providers by booking appointments, checkups, and consultations.
Patients can also utilize the platform for booking diagnostic tests, obtaining medicines, and saving health records. The company also creates software products that enable healthcare providers ranging from clinics to hospitals to digitize and deliver more effective and higher quality healthcare to several patients around the globe every day.
In September last year, Practo cofounder and CEO Shashank claimed that the company had observed a 10x boost in teleconsultations on its platform. “About 80% of all our telemedicine customers were first-time users, while approximately 50% consultations were from non-metro cities. There are now over 25,000 verified doctors who provide online consultations on Practo. This is indicative of growth to the tune of over 1000% in just four months,” he said.
The startup claims to have catered to 17 Cr Indians so far but is looking to expand to tier 2 and 3 cities to reach another 20 Cr Indians soon. Earlier this month, it launched online doctor consultations in 15 Indian languages including Hindi, Marathi, Tamil, Kannada, and Bengali.
Some positives for the sector in 2020 included the government’s decision to launch the National Digital Health Mission and telemedicine guidelines which encouraged healthtech startups to come up with online accessibility of quality treatment for both Covid and non-Covid health issues.
The Insurance Regulatory and Development Authority (IRDAI) also published a notification prompting insurers to allow telemedicine to be covered under health insurance programmes. The telemedicine facility could help Indians save around $10 Bn by 2025.
With the second wave of the COVID pandemic in India, healthtech startups are observing an increase in demand. If Practo successfully raises the proposed funds, it would be able to get ahead of its competitors.Shishir Gupta, Founder and CEO, StartupLanes
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