Mumbai Ambulance Startup “Dial 1298″ Gets $1.5 Million From Acumen Fund
Mumbai-based ambulance startup - popularly known as DIAL 1298 FOR AMBULANCE - has received $1.5 million funding from New York’s Acumen Fund. Acumen is a nonprofit venture fund which invests in “sustainable, scalable solutions addressing poverty in South Asia and Africa”.
Acumen has made the investment in Ziqitza Healthcare Limited (ZHL), which owns the ambulance service. It plans to roll out a nationwide network of life support ambulance service, essentially filling in a gap in the emergency medical support in Indian cities. The investment will be used to scale from the 10 ambulances it currently operates (including 2 franchisee-based) up to 70 ambulances in Mumbai by March 2009. Once the expansion is complete, 1298 expects to be reaching patients in Mumbai within 15 minutes of receiving a call for an ambulance.
“Acumen Fund is committed to identifying and supporting local entrepreneurs who are focusing on bringing critical services to the world’s poor,” Acumen Fund CEO Jacqueline Novogratz said in a statement.
1298 is the probably the first for-profit, private sector ambulance service in India. In Mumbai, people can access ambulance services by dialing a common telephone no. 1298 from any telecom service provider. The services include 1) Basic Life Support (BLS) - to administer oxygen, treat splint fractures, control bleeding and perform CPR (cardiopulmonary resuscitation) in cases of cardiac arrest. 2) Advanced Life Support (ALS) - it has sophisticated equipment to monitor, shock and pace the patient’s heart. 3) Patient Transport Service (PTS) - provision of transport for the patient from hospital to hospital or other destinations in a non-emergency situation.
It has a unique business model. It employs a sliding scale pricing system based on the level of hospital to which a patient is taken. Those who go to free public hospitals do not pay, while those who ask to be taken to Mumbai’s more expensive hospitals pay accordingly.
1298 covers costs through a combination of the premium payments made by half its clients and by managing capital costs. ZHL also uses a mix of grants, equity and loans to grow its service. The company’s CEO is Shaffi Mather.
