Accel India To Invest $2.5 Million In Healthcare Portal

14 February, 2009

Rx HealthCare Magic, which runs a healthcare portal , has raised Series A funding of $2.5 million from Accel India, VCCircle has learned. Kunal Sinha, founder and CEO of Rx HealthCare Magic, has confirmed the investment. The funding will be released in tranches as company meets its milestones.

Bangalore-based HealthcareMagic is a medical consultation and referral portal which allows users to interact live with doctors. It currently has around 50 employees, which include 34 doctors. While some of these doctors are full time employees, others are consultants on contract.  The company earns its revenues through medical consultations online and via telephone.

While payment for online consultations is done through credit cards, for telephone, it has signed up with network operators. The mobile phone consultations are done at charges of Rs 8-10 per minute, said Sinha. HealthcareMagic has tied up with five operators – Reliance Communications, Idea Cellular, Aircel, BPL Mobile and Tata Teleservices, while only BPL is live currently.

The company was providing its services free of cost for 10 months between January and October ’08, after which it wwent pay. “We would be cash flow positive in next 3-4 months,” said Sinha. It has clocked more than half a million medical interactions since its launch.

Sinha expects usage to rise once the agreements with operators are active. “When we signed up with BPL, there was a surge in mobile calls by more than 8-10%,” adds Sinha. 

It has also signed up with insurers like ICICI Lombard and Bajaj Allianz, under which policyholders can consult as part of their policy. HealthcareMagic is similar to US websites like WebMD and Revolution Health, which have gained significant traction. In October 2008, Revolution Health merged with Waterfront Media in a deal valued at $300 million.

Expansion Plans

HealthcareMagic plans to invest the funds on technical infrastructure, which involves expansion of internet servers, call centre, call recording etc. The company also plans to expand sales and marketing and invest in operations.

This is the second venture of  Sinha, an IIT Kanpur graduate. Sinha had earlier started Techunified, a software product firm, which was sold to Sarabhai Group firm ORG Informatics in 2007.

Accel India, which was known as Erasmic Venture Funds before merging with US-based venture capital firm Accel Partners last year, is investing out of its recently closed $60 million fund. Its portfolio companies include Chakpak, DoveTail, HolidayIQ, Inbiopro, Kaati Zone, Kirusa, MuSigma, Myntra, Perfint, Sconce and Virident.


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9 Comments
Namit Nangia . 5 years ago

Congratulations HealhCareMagic team!

I am sure Accel and HealhCareMagic will do wonders in improving health-care scenario in India.

Best wishes!

Namit

Vineeta Sharma . 5 years ago

This is great, I’ve used their Live Chat with Doctor, and the service is excellent and Doctors are well knowledgeable.

Babu Shwarma . 5 years ago

Fact check? 500,000 medical interactions in the last 12 months? That’s about 1400 per day…those 34 doctors must be very busy.

Rajan Gupta . 5 years ago

Kudos to the team. I am an annual subscriber of this service and I have been using this portal to ask questions directly to doctors ever since they first appeared in Times of India.good to see healthcare being accessible through phone and internet.

Rajeev Khetan . 5 years ago

Doctors took a long time trying to understand my health history but the effort was worth it.I have not seen a website doing the same thing in India or even US but I don’t know much about this area.If there’s a free one, let me do know.Good idea overall and that is what matters.Telemedicine is an upcoming area and they have made it very simple using Internet and mobile.

Raman Khatri . 5 years ago

Half a million interactions (500,000) is very high but I am sure this includes the usage of automated health tools for which Live doctors are not needed.Even if the real doctor and patient interaction was even 100,000 in 12 months, it is mind boggling.Best wishes to the team.

Manish Raitani . 5 years ago

Nice website and the utility value is high for common man, house wives, elderly people at home, NRIs traveling outside India where cost of meeting a doctor is high.My office is in the same building so I have seen them running around when Internet used to go down. Best wishes to them.

Ron Johnson . 5 years ago

Site like this will never work. Interaction between doctors are patients are private matter. In India there are hardly any systems that can protect privacy. Besides at the end of the day most people prefer to see their doctor in person. As far as I can see, it almost seems like an idea that will fizzle away in time and more importantly, even TODAY the internet penetration in India is miserable. In addition, there are doctors in India every 4th block. By the way, Web MD does not provide any live doctor’s opinion on their site. That would be illegal based on US laws. Certification of medical practices are quite tight in the U.S. I love when people compare knock off ideas to U.S. web sites. The dynamics of internet, payment systems, online shopping behavior, etc. in the US is FAR different from that in India. What is considered SCALABLE BUSINESS MODEL in India is far different than what is considered in the U.S. This business will never work.

Shekhar Sahu . 5 years ago

Such portal in India is unbelievable. This may take some time for people to be familiar to this kind of stuffs.

future is bright.

Accel India To Invest $2.5 Million In Healthcare Portal

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