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Exclusive: Redcliffe Labs acquires Celara Diagnostics for $7 Mn

EntrackrEntrackr · 10m ago
Exclusive: Redcliffe Labs acquires Celara Diagnostics for $7 Mn
Medial

Omnichannel diagnostics service provider Redcliffe Labs is set to acquire Celara Diagnostics, marking the company’s second acquisition in the diagnostics space this year. The board of Redcliffe Labs has passed a resolution of approval for the acquisition of shares of Celara Diagnostics Pvt Ltd for an amount not exceeding Rs 60 crore ($7 million). Bengaluru-based Celara Diagnostics offers comprehensive diagnostic services in radiology and pathology. Its advanced facilities include MRI, CT scans, ultrasonography, and specialty services in neurology, cardiology, and gastroenterology. The company reported Rs 25 crore revenue and Rs 1.5 crore profit in FY23. Its FY24 results are yet to come. In March, Redcliffe Labs’ founder Dheeraj Jain said that the company aims to acquire labs with strong financial performance to boost its cash flow and profitability. Earlier this year, Redcliffe Labs-owned Medicentre acquired Kota-based Prime Sonography & Diagnostic Centre for an undisclosed amount. The latest acquisition follows Redcliffe Labs’ recent $42 million Series C fundraise led by the Denmark-based investment firm IFU. The company plans to deploy the funds towards opening more labs and collection centers while expanding its presence in the tier II and III cities. The firm also roped in Ankur Shah, former CFO of Careem, as an independent director, and Alka Saxena, who previously worked with Health Care at Home and Dr. Lal PathLabs, as the new CFO. Redcliffe, a competitor to PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr. Lal PathLabs, recorded a revenue of Rs 347 crore in FY23, while incurring a loss of Rs 345.6 crore. It hasn’t filed FY24 financials yet.

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Redcliffe Labs posts Rs 419 Cr revenue in FY25; narrows EBITDA losses

EntrackrEntrackr · 29d ago
Redcliffe Labs posts Rs 419 Cr revenue in FY25; narrows EBITDA losses
Medial

Redcliffe Labs posts Rs 419 Cr revenue in FY25; narrows EBITDA losses Diagnostics platform Redcliffe Labs has posted a 20% increase in its operating revenue to Rs 419 crore in FY25 from Rs 350 crore in FY24 and managed to narrow its EBITDA losses, as per the company’s press release. Diagnostics platform Redcliffe Labs has posted a 20% increase in its operating revenue to Rs 419 crore in FY25 from Rs 350 crore in FY24, as per the company’s press release. The Gurugram-based firm also managed to reduce its EBITDA losses from -38% to -21% during the same period. Founded by Aditya Kandoi, Redcliffe operates a nationwide network of over 80 labs and claims to have the widest home sample collection footprint in the country. Diagnostic services contributed over 95% of the company’s revenue in FY25, with the rest coming from product sales and other operating income. The company said it diagnosed over 2.5 million cases last fiscal and continues to focus on expanding in underserved regions, with more than 70% of its testing volumes now coming from Tier II cities and beyond. On the profitability front, Redcliffe reported a gross margin of 70% in FY25 and is aiming to expand it to 74% in FY26. It has also set a revenue target of Rs 560 crore for the ongoing fiscal through organic growth and strategic acquisitions. “We are transforming lives and making diagnostics a first-line solution for millions who were previously underserved,” said Kandoi. The company plans to expand its presence to over 300 cities with 150 labs by FY28. According to startup data platform TheKredible, Redcliffe has raised $113 million to date, including a $42 million Series C round led by LeapFrog. It also acquired Bengaluru-based Celara Diagnostics in a $7 million deal. Redcliffe competes with players like PharmEasy-owned Thyrocare, Tata 1mg, and Healthians.

Redcliffe Labs raises $42 Mn in Series C round

EntrackrEntrackr · 10m ago
Redcliffe Labs raises $42 Mn in Series C round
Medial

Omnichannel diagnostics service provider Redcliffe Labs has raised $42 million in a Series C funding round led by Denmark-based investment firm IFU, which contributed $20 million. Existing investor LeapFrog added $15 million, while the remaining capital came from shareholders HealthQuad and Spark Growth Ventures. This new funding follows the Noida-based company’s previous rounds, including $61 million in its Series B in May 2022 and $10 million in Series A in April 2021. Other notable investors include Schroders, LC Nueva, Chiratae Ventures, and Alkemi Venture Partners. The fresh capital will fuel Redcliffe’s expansion plans, particularly in deepening its presence in tier II and III cities across India. The company plans to open more labs and collection centers and expand its home collection network, according to a press release. Redcliffe has executed strategic acquisitions in North-Western India and continues to pursue PAN-India expansion through partnerships and further acquisitions. In addition to its financial growth, Redcliffe has strengthened its leadership. Ankur Shah, former chief finance and strategy officer of Careem (acquired by Uber), has joined as an independent director. Alka Saxena, formerly of Health Care at Home and Dr. Lal PathLabs, has been appointed as CFO. Currently, Redcliffe Labs’ services are available in more than 220 cities across India through a network of 80 labs, over 2,000 collection centers, and home collection services. The company claims to have served more than 7 million patients across tier I, II, and III cities. Redcliffe Labs’ operating revenue surged 2.6 times to Rs 347 crore in FY23, up from Rs 130 crore in FY22. However, the company’s losses jumped fivefold to Rs 345.6 crore from Rs 67.7 crore over the same period. It competes with notable players such as PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr. Lal PathLabs.

Redcliffe Labs crosses Rs 350 Cr revenue in FY24, narrows losses significantly

EntrackrEntrackr · 7m ago
Redcliffe Labs crosses Rs 350 Cr revenue in FY24, narrows losses significantly
Medial

Online diagnostic platform Redcliffe, backed by Leapfrog Investments, reported modest growth during the fiscal year ending March 2024, achieving a 28% reduction in losses, largely attributed to a significant cut in advertising and material costs. Redcliffe’s revenue from operations grew by 11% to Rs 348.38 crore in FY24 from Rs 313.86 crore in FY23, as per its consolidated financial statements sourced from the Registrar of Companies (RoC). Redcliffe Labs operates a network of laboratories specializing in pathological testing across various branches of biochemistry and radiology. Around 98% of its operating revenue came from these services, contributing Rs 341.02 crore in FY24. The sale of products and other operating income accounted for Rs 2.16 crore and Rs 5.20 crore, respectively, during the last fiscal year. The company’s total income crossed Rs 353 crore in FY24 with other non-operating income worth Rs 5.3 crore including interest income and excess provisions written back. The Noida-based company’s advertising costs fell by 45% to Rs 65.38 crore, and material costs, which declined by 15% to Rs 106.31 crore in FY24. However, there was a notable increase in laboratory test charges and depreciation costs which grew by 62.2% and 3X respectively. Overall, the company successfully controlled its total expenses, which dropped 14% to Rs 556.16 crore in FY24 from Rs 647.30 crore in FY23. In the end, the company managed to decrease its losses by 28% to Rs 250 crore in FY24 from Rs 345 crore in FY23. Its ROCE and EBITDA margin stood at -544.68% and -57.55%, respectively. On a unit basis, Redcliffe Labs spent Rs 1.6 to earn a rupee in FY24. Redcliffe recorded cash and bank balances of Rs 15.87 crore and had current assets worth Rs 89.64 crore as of FY24. According to TheKredible, Redcliffe Labs has amassed total funding of $113 million to date, including investments from LeapFrog. The company recently secured $42 million in a Series C funding round and acquired Bengaluru-based Celara Diagnostics for approximately $7 million. Entrackr exclusively reported the development. Among venture-funded companies, Redcliffe competes with PharmEasy-owned Thyrocare, Healthians, and 1mg. Tata 1mg’s revenue from operations increased to Rs 1,968 crore in FY24 from Rs 1,627 crore in FY23 while Healthians achieved EBITDA profitability with Rs 243 crore revenue in FY24. Thyrocare, which is a public company, reported 20% jump in revenue to Rs 177.4 crore in Q2 FY25 with a profit after tax of Rs 26.4 crore. While founded in 2018, Redcliffe Labs saw real interest, and backing for its plans in the year after Covid struck, when diagnostic labs were considered as good as money printing machines by some investors. That has meant the usual spike in funding, followed by the struggle we are seeing in the past two years, as momentum has all but died out, and much like edtech, the legacy players including hospitals have fought back to reclaim their space. On a smaller base as compared to its peers, Redcliffe’s topline growth remains unimpressive, and the bottomline pressure will continue to hurt. While it has done its own share of acquisitions to buy its way out of stagnation, that has clearly not worked, to no one’s surprise. The whole category faces a challenge of growth today, even if the overall size is much much larger than pre-2020, and looks set to remain that way. The only issue is the scramble for share among many more players, including those who raised money at hefty post-covid valuations, making growth difficult. Despite many promises, no firm has stood out for a breakthrough offering like faster speed, lower costs or specialised accurate diagnosis, to stand out. Fy25 promises to be yet another year of attrition, and for Redcliffe, the best hope might yet remain a respectable acquisition by a larger player, than trying to cut its own pathway ahead.

Millions of Highly Sensitive Patient Records Exposed in Medical Diagnostic Company Data Breach

Startup News FYIStartup News FYI · 1y ago
Millions of Highly Sensitive Patient Records Exposed in Medical Diagnostic Company Data Breach
Medial

In a data breach discovered by cybersecurity researcher Jeremiah Fowler, over 12 million medical records containing diagnostic scans, test results, and other sensitive information were found in a non-password protected database. The records belonged to Redcliffe Labs, an India-based diagnostic center, and included information such as patient names, doctors, and testing locations. The database also exposed development files from Redcliffe Labs' mobile application, posing potential risks for application security and user data compromise. This incident highlights the cybersecurity challenges faced by healthcare organizations and the need for robust data protection measures.

Exclusive: Even Healthcare raises $20 Mn led by Khosla Venture

EntrackrEntrackr · 11m ago
Exclusive: Even Healthcare raises $20 Mn led by Khosla Venture
Medial

Healthcare company Even Healthcare has raised Rs 169 crore (approximately $20 million) in a new round led by Khosla Ventures. The fresh funding for the Bengaluru-based firm has come after a gap of 20 months. The board at Even has passed a resolution to issue 2,17,589 preference shares at an issue price of Rs 7,762 each to raise Rs 169 crore or $20 million, its filing sourced from the Registrar of Companies shows. Khosla Ventures led the round with Rs 83.4 crore or $10 million while Pathfinder and Mercury Fund invested Rs 21.3 crore and 26.9 crore, respectively. Simon Fiduciaria, DLB Ventures, Lex Italia, 8 VC, Rainmatter fintech, and others cumulatively injected the rest amount. Even Healthcare has also expanded its employee stock option (ESOP) pool, adding new options that bring the total pool size to 1,35,000, according to a separate resolution filed by the company. According to Entrackr’s estimates, its ESOP size is worth $12 million. As per startup data intelligence platform TheKredible, the company has been valued at around Rs 753 crore or $91 million post-allotment. Even offers subscription-based plans to cover diagnostics, consultations, and hospitalization costs of up to Rs 50 lakh. According to the company, it only partners with those hospitals that guarantee the care of its members in exchange for a recurring payment. Launched by Mayank Banerjee, Matilde Giglio and Alessandro Lalongo, Even also offers personalized managed care programs and provides Even cards which can be used to pay bills at its partner hospitals and labs. Even claims to have an advantage over medical insurance as it provides unlimited OPD consultations and diagnostics. The company has raised approximately $40 million to date, including $15 million from Alpha Wave and Aspada in November 2022, and an initial $5 million in seed capital led by Khosla Ventures in 2021. Entrackr exclusively reported about its seed funding in July 2021.

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