MFine Raises $16m From New & Existing Investors Led by Heritas Capital as Adoption of Digital Health Soars in India Amidst COVID-19 Pandemic
SINGAPORE and BENGALURU, India, Jan. 18, 2021 /PRNewswire/ -- India's leading Digital Health startup MFine has raised $16m in a new funding round led by Heritas Capital with participation from Singapore-based family office of Y'S Investment Pte Ltd. Existing MFine investors including SBI Investment, SBI Ven Capital, BEENEXT and Alteria Capital have also followed-on in the round. The oversubscribed round wraps up a strong year for MFine with the company achieving 10x growth amidst exponential adoption of telemedicine and digital health in India in 2020.
The COVID-19 pandemic, subsequent lockdown measures and the release of Telemedicine Guidelines by Government of India have led to the widespread adoption of telemedicine in India. A new standard for digital health services including health IDs, personal health records, Digi Doctor and a health facility registry has also been announced in August 2020 under the National Digital Health Mission (NDHM) to support universal health coverage for India's citizens.
With over 4,000 doctors including some of India's top doctors from 600 reputed hospitals covering 35 specialties on the platform, MFine provides users with on-demand access to quality medical care even as COVID-19 hindered delivery of routine healthcare to chronic patients from remote locations. Since COVID-19, more than one million users have utilized MFine's platform to teleconsult with doctors on chronic conditions such as diabetes and arthritis and acute illnesses including viral infections, and for varying services including diagnostics, health checks, radiology and e-pharmacy.
"The year 2020 has been very significant for us. During the pandemic, with the introduction of strict lockdowns and social distancing measures, we found ourselves in a unique position to help millions of people with access to essential healthcare services. We are seeing incredible traction on the provider and consumer side. Our vision of digital health as a solution to scale quality healthcare delivery has been accelerated by 2 years. The entire ecosystem is now on an accelerated transformation with the Indian government also introducing the National Health Stack. India is on the cusp of redefining healthcare delivery and we are actively engaged in shaping and leveraging this big shift," said Prasad Kompalli, Co-founder & CEO of MFine.
In 2020 MFine expanded its geographical coverage beyond physical boundaries of the cities to serve people from over 1,000 towns in India and launched several new services such as AI-based self-assessment of various health conditions, long term care programs for chronic conditions and membership to offer benefits on all the services for its direct consumers and also corporates.
"MFine has developed a compelling solution that has proven to be highly impactful during this pandemic to ensure continued and trusted access to quality and affordable healthcare services. We believe that MFine's collaborative partnership model with hospitals and doctors powered by the application of AI will enable smart optimization of limited healthcare resources to address unmet needs throughout India and beyond," said Chik Wai Chiew, CEO & Executive Director of Heritas Capital.
"This is a great example of how mobile connectivity and advances in technology can aid in providing primary health care to millions of people. We see huge potential MFine's state-of-the-art AI and mobile technology platform and its ability to scale beyond India as COVID-19 has accelerated the use of telemedicine and digital health in India and other regions in SEA," Yoshitaka Kitao, Representative Director & Chairman of SBI Investment.
"MFine has pioneered the access to top-class, trusted medical care in India. Despite 2020 being a difficult operating year, the MFine team has demonstrated its strong execution capability to add new capability, launch new offerings, accelerate traction while achieving strong economics. We are excited to continue backing the MFine team to create a large, world class healthcare company with deep positive impact," said Teruhide Sato, Founder & Managing Partner of BEENEXT.
The COVID-19 pandemic has supercharged global funding activity in digital health in 2020. In 2020, telemedicine was the top-funded category and led VC funding activity with $4.3 billion, a 139 % YoY increase compared to $1.8 billion in 2019. Global venture capital funding in digital health came to $14.8 billion, a 66% increase compared to $8.9 billion in 2019, according to Mercom Capital's annual report on funding and mergers and acquisitions (M&A) activity for the digital health sector for 2020.
With this fresh funding, MFine plans to reinforce its leading position in delivering an AI-driven, on-demand healthcare service across India, and aims to be one of the largest virtual hospitals in the world with services across primary care, secondary care and chronic care management in collaboration with its trusted partners. MFine will deploy the funds towards tripling its investments in AI, mobile engineering and device integration; expanding its hospital network across the country; scaling the recently launched services which include delivering medicines, preventive health screenings and diagnostic tests. The company will also initiate Series C fund raising in the coming months.
About MFine
MFine is an AI-driven, on-demand healthcare platform that provides its users access to virtual consultations and connected care programmes from the country's top hospitals. The app-based mhealth platform partners with leading and trusted hospitals instead of aggregating individual doctors. MFine users can consult doctors from their preferred hospitals via chat or video to get prescriptions and/or routine care. Users can also book routine lab tests, medicine delivery and access comprehensive health packages. MFine was founded in December 2017 by Ashutosh Lawania and Prasad Kompalli who were later joined by Ajit Narayanan and Arjun Choudhary. For more details, please visit: https://www.mfine.co/.
About Heritas Capital
Heritas Capital is a Singapore-based private equity and venture capital investment firm that invests in fast-growing companies across the healthcare, education and technology sectors. Guided by our investment philosophy, "Invest with Purpose, Impact Across Generations", Heritas Capital backs innovative companies to become emerging champions and drive inclusive growth that improves the lives of local communities while delivering sustainable returns to investors.
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