Mumbai: Medikabazaar has raised $65 million in a new funding round led by Lighthouse India Fund, valuing the business-to-business (B2B) medical supply platform at $700 million.

Lighthouse, an investor in Nykaa, Bikaji Foods and Duroflex, has brought in $30 million, with the rest coming from existing investors such as Creaegis, Health Quad, Ackermans & van Haaren, British International Investment (formerly CDC) and KOIS Holdings.

In September 2021, the company raised $75 million in its Series C round led by Creaegis, along with CDC Group.

The company said it will use the funds to strengthen its technological capabilities, deepen the supply ecosystem and digital-driven distribution channels, bolster digital operating capabilities to help improve efficiency of the healthcare sector in India and expand its global operations.

“Revenue momentum continues to be very high and with the start of new international operations in the MENA (Middle East and North Africa) region in this quarter, the top line growth is looking robust for FY23 which would help us hit the unicorn valuation mark in the Series D round which we hope to conclude by end of ‘22,” Vivek Tiwari, founder and CEO of Medikabazaar told ET.

The Mumbai-based company’s focus on unit economics has helped it turn Ebitda-positive, he added.

Ebidta stands for earnings before interest, tax, depreciation and amortisation, positive

Founded in 2015 by Tiwari and Ketan Malkan, Medikabazaar is a digital health-tech platform for the medical supply needs of hospitals, nursing homes and clinics, and other medical institutions with categories like medical consumables, devices, equipment, and pharmaceuticals.

The company covers over 20,000 pin codes in India.

“Fuelled by the growing demand from healthcare delivery providers and partnerships with domestic and international medical device and consumable brands, our sales have grown by 25x over the last three years,” Tiwari said.

The company will look to scale up its existing product verticals and infrastructure with a technology interface and pursue domestic and international acquisition opportunities, he said.

“We continue to invest heavily in our tech capabilities and operations to make healthcare available, accessible, and affordable in India and replicate our success in international markets. The funding will enable us to expand and deepen our presence in the Indian health-tech sector and help power our global ambitions,” Tiwari added.

According to him, the company’s gross merchandise value, or GMV, for FY22 was $350 million. “We are expecting it to grow 2.5x in FY23,” he added.

“The highly fragmented and inefficient medical distribution industry gives Medikabazaar fertile conditions for growth and scale. Medikabazaar has proven to offer sustainable solutions to OEM and healthcare delivery partners, and we believe the company will continue to maintain its pole position in the industry,” said Rochelle D’ Souza, managing director at Lighthouse Advisors.

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