Online doctor consultation app DocsApp on Thursday announced a merger with Bengaluru-based healthcare platform MediBuddy, in early signs of consolidation in the online health care segment. Though the company did not disclose details of the deal, it includes an exchange of both cash and stock.
The merger will help expansion of business into new healthcare categories including online specialist doctor consultations, lab tests, preventive health checks, and delivery of medicines.
Launched in 2015, patients connect and talk to specialist doctors online using the app. The startup offers over video calls, voice calls and an in-built chat application for consultations with a doctor.
MediBuddy, founded in 2000, was initially launched as a tool to schedule hospital visits, raise and track health insurance claims, search for insurance-covered network hospitals. It later branched into doctor consultation and home-based blood tests.
The merged entity will serve the healthcare needs of over 3 crore Indians, with a partner network of over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres and 2,500 pharmacies covering over 95% of pin codes in India, according to a press statement.
“This combined entity will offer a comprehensive platform to our customers that delivers on the promise of a digital healthcare future,” said Satish Kannan, chief executive of the merged entity, in the statement.
DocsApp has raised close to $19 million in venture capital and debt funding since its launch in 2015. Its merger with MediBuddy is significant considering that many consumer-facing startups are facing bankruptcy due to COVID-19.
The last substantial M&A in India’s health tech space was in 2015 when Bengaluru-based doctor discovery platform Practo acquired smaller rival Qikwell.
Separately, DocsApp announced a $20 million (150 crore) Series B round of funding led by Bessemer Venture Partners, Fusian Capital, Mitsui Sumitomo (MSIVC) & Beyond Next ventures. Existing investors including Milliways Ventures and Rebright Partners also participated in this round.