Update: Medikabazaar has announced that it has raised $75 million in Series C investment led by CREAEGIS, along with CDC Group, the UK’s development finance institution and existing investors.
Previous version: Medikabazaar, a business to business (b2b) marketplace for medical equipment, has raised nearly $60 million in its Series C round from ten new and existing investors. The Mumbai-based company had raised a $15.6 million Series B round in November 2019 and a small tranche in the same round in March last year.
Medikabazaar has allotted 638,357 Series C preference shares at an issue price of Rs 6788.22 per share to raise Rs 433.33 crore or $59 million, regulatory filings show.
UK-based CDC Group is the largest investor in this round which infused Rs 131.3 crore followed by Creaegis Limited, CIF and HealthQuad Fund who invested Rs 106.8 crore, Rs 58.2 crore and Rs 51 crore respectively.
Mitsui Sumitomo Insurance Venture Capital, KOIS Holdings, Ackermans & van Haaren, Rebright Partners and individuals including Arun Venkatchalam and Sunil Kalra have pumped in the remaining amount.
Following the fresh allotment of shares, the stake of promoters (co-founders) of Medikabazaar has been diluted from 40.88% to 28.59%.
As per Fintrackr’s estimates, Medikabazaar has raised the fresh round at a post-money valuation of Rs 1730- Rs 1,750 crore or $235-238 million.
Founded by Vivek Tiwari and Ketan Malkan in 2014, Medikabazaar’s platform enables hospitals and medical establishments to discover supplies, compare specifications and prices in real-time. The product on the B2B platform includes hospital devices, materials, medical consumables, dental tools among others.
According to the company, it works with about 100,000 B2B customers and has an active base of around 65,000-70,000. Currently, it is present in around 20,000 pin codes and has a significant presence in smaller cities.
Collateral Medical, PinkBlue, and Healthkart are its broad competitors. One of its peers Aknamed was recently sold out to PharmEasy. PharmEasy bought out the stake of five co-founders of Aknamed who collectively controlled a 50.67% stake. According to Fintrackr’s estimates, PharmEasy had valued Aknamed at an enterprise valuation of Rs 1,060 crore or $144 million.
While Medikabazaar is yet to file its annual financial report for the last two fiscal years, it claimed to have achieved an annualised GMV of around $100 million (over Rs 750 crore) in FY20 and had a target of $200 million (Rs 1,500 crore) for FY21.