PC: ABP News
Already, Redcliffe Labs, an omnichannel diagnostics service provider based in Noida, has raised $42 million in its ongoing round of Series C funding. Denmark-based investment firm IFU will lead the investment with a contribution of $20 million. LeapFrog, the existing investor, injected $15 million into the funding round. HealthQuad and Spark Growth Ventures have also invested along with the other capital requirements.
Backed by these successful funding rounds, Redcliffe just raised a new investment – a significant $61 million in its Series B round last May 2022 and $10 million in Series A funding back from April 2021. Outstanding among Redcliffe Labs’ investor pool are Schroders, LC Nueva, Chiratae Ventures, and Alkemi Venture Partners as evidence that the company really has something promising to offer within the health and diagnostics sector.
It is fresh capital infusion that will spur its expansion plans more particularly in tier II and III cities across India, where it expects to set up more labs and collection centers and expand the home collection network for increased access to diagnostics services. That is in tandem with the direction laid out in the company’s recent press release.
Redcliffe Labs has a focused acquisition in the North-Western India region with more strategic alliances and acquisitions to PAN-India. The company’s growth track is also supported by its strategic endeavors that aim at broadening and consolidating market presence in the emerging healthcare scenario.
Apart from its financial growth, Redcliffe has strengthened its leadership team with recent key appointments. Ankur Shah formerly headed Careem, an Uber acquisition, as chief finance and strategy officer. He joins Redcliffe as an independent director, bringing valuable experience to the company. Alka Saxena was associated with Health Care at Home and Dr. Lal PathLabs and has been appointed as the Chief Financial Officer, thus adding more depth to Redcliffe’s leadership.
Currently, diagnostics services from Redcliffe Labs reach over 220 cities through a strong network of 80 labs along with more than 2,000 collection centers and efficient home collection services. The company has catered to over 7 million patients spread across tier I, II, and III cities with quality health solutions to a very vast customer base.
Despite the challenges from market dynamics, which is changing, the performance of Redcliffe Labs has been a commendable performance with operating revenue hitting Rs 347 crore in FY23 compared to Rs 130 crore in FY22. At the same time, the company suffered losses of fivefold at Rs 345.6 crore against Rs 67.7 crore in the same period. To that end, strategic financial management will be needed when speed reaches levels of growth at this pace.
Redcliffe Labs faces established players, such as those owned by PharmEasy Thyrocare, Healthians, 1mg, and Dr Lal Pathlabs, amounting to stiff competition within the competitive diagnostics landscape. Strategic funding and expansion moves put the company on a strong footing to move forward on a high growth curve and in commanding market leadership in the healthcare sector, opening bright prospects for diagnostics services.
