Health tech startups Multiplier Solutions and ABI Health have raised $1.5Mn each from Norwest Venture Partners. The primary objective of the investment is to merge the Hyderabad-based Multiplier Solutions and Bengaluru-headquartered ABI Health in the next 12-18 months.
It is a rare thing for VC firms in the country to scout for, and invest in, startups with the intent of merging them, as part of its long-term strategy, which typically begins with ticket sizes of $5-6 million
Mohan Kumar, partner at Norwest Venture Partners, said, “It’s already happening in the US, and the merger will be a definitive step in us pioneering this step in India. We can do much more together, as one single unit. There’s a much larger game to play, and a much larger problem can be solved.”
He also added, “Both, Multiplier and ABI provide innovative patient engagement and collaboration solutions to healthcare providers. Together, they provide a suite of products for connecting hospitals, laboratories, medical clinics, doctors and patients into a network.”
ABI Health , a Bengaluru-based startup and a SaaS based revenue model came in existence in 2013. It is a health exchange and image management cloud software provider, also operates in the US and in Peru. The startup has its own imaging suite, called Spectra, which connects all stakeholders — doctors, hospitals and patients.
On the other side, Multiplier Solutions was founded by Vikram Kumar and Saumya Prakash in the year 2013. It works with leading hospitals diagnostics chains, clinics, and offers a product platform that integrates artificial intelligence and machine learning that claims to provide improved diagnostics as well as predicting clinical outcomes.
Apart from top metro cities in India, the company also has foot print in UAE, Oman and Iraq. The company size comprises of 50 employees and earns revenue through a subscription-based model, based on the requirements of the customers.
“We are moving away from the traditional markets, where you have your films or CDs, to the cloud and web completely. There is no need for huge investments in hardware and software. We take care of the entire image management for a hospital or a network of hospitals,” said Ajit Veerappan, founder and managing director, ABI Health.
This merger can become a gateway for many budding start-ups in the health tech space. Competitors in the healthtech space include startups like Lybrate, Practo, DocEngage, LiveHealth, and Curofy.
Last year in August, healthcare analytics startup Tricog secured Series A funding from Blume Ventures, Inventus Capital Partners, and others. This year in March, home-based medical services provider HealthCare at HOME (HCAH) secured $38.5 mn from healthtech-focussed PE firm Quadria Capital.
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