DocsApp announces merger deal with healthtech platform MediBuddy

DocsApp, online doctor consultation app, announced a merger with Bengaluru-based healthcare platform MediBuddy, in early signs of consolidation in the online health care segment. Although not many details of the deal were disclosed by the company. It includes an exchange of both cash and stock.

It is expected to aid in expansion of business into new healthcare categories including online specialist doctor consultations, lab tests, preventive health checks, and delivery of medicines.

The app was launched in 2015 and help patients connect and talk to specialist doctors online using the app. It offers consultation with doctor over video calls, voice call and an in-built chat application.

MediBuddy was founded in 2000 and was initially launched as a tool to schedule hospital visits, raise, and track health insurance claims, search for insurance-covered network hospitals. The business was later expanded to doctor consultation and home-based blood tests.

It is estimated that the merged entity will serve the healthcare needs of over 3 crore Indians, with a partner network of over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres and 2,500 pharmacies covering over 95 per cent of pincodes in India, according to a press statement.

“This combined entity will offer a comprehensive platform to our customers that delivers on the promise of a digital healthcare future," said Mr Satish Kannan, chief executive of the merged entity.

Since its launch in 2015, DocsApp has raised close to US$ 19 million in venture capital and debt funding. Its merger with MediBuddy is important considering that many consumer-facing startups are facing bankruptcy due to COVID-19.

In India’s healthtech space, the last substantial merger and acquisition was in 2015 when Bengaluru-based doctor discovery platform Practo acquired smaller rival Qikwell.

Separately, DocsApp announced a US$ 20 million Series B round of funding led by Bessemer Venture Partners, Fusian Capital, Mitsui Sumitomo (MSIVC) & Beyond Next ventures. Existing investors including Milliways Ventures and Rebright Partners also participated in this round.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.