Modern Family Doctor gets additional venture funding
Posted on Feb 22 2014 | IANS
Bangalore, Feb 21 : Primary care clinics chain Modern Family Doctor (MFD) Friday announced securing USD 4 million (Rs.24 crore) from Luxembourg-based Bamboo Finance and Silicon Vally-based investor Saama Capital in the second round of funding.
Set up here in 2011, MFD has now 25 clinics, including 22 across Bangalore and three at Pune with the promoter's seed capital and USD 2 million (Rs.10 crore) from first round of funding by the Saama Capital in its earlier avatar as Silicon Valley Bank.
"We plan to expand our operations by setting up an additional 75 clinics in Bangalore and Pune in the ratio of 60:40 over the next two years, as the response to our affordable healthcare has been overwhelming," MFD chief executive Naresh Malhotra told IANS here.
The hospital chain has treated about 100,000 patients so far with about 40 percent of them re-visiting its clinics for check-up and tests.
"We cater to the primary needs of a family due to lack of accessible and affordable healthcare in state-run hospitals where outpatient departments are unable to cope with the increasing flow of patients and diagnosis at private hospitals is expensive," Malhotra said.
With 30 fulltime doctors and 45 specialists, MFD clinics provide diagnostics and laboratory services to patients, as about 70 percent of them need primary healthcare, which is their fundamental right.
As a global private equity group, Bamboo Finance invests in business models that benefit low-income communities in emerging markets.
"Since our global equity group has been set up to back commercially viable businesses providing access to essential products and services to underserved communities, we find MFD eligible for funding to expand its healthcare network across the country," Bamboo chief investment officer Eric Berkowitz said in a statement.
Asserting that affordable primary healthcare segment in India was under-served, Saama Capital managing partner Ash Lilani said additional funding by Bamboo would help MFD expand its presence across the country through its next phase of growth.
"We believe that MFD will be able to scale its operations in Bangalore and Pune and other cities in view of their experience and knowledge of healthcare in the country," Lilani said.
The MFD's clinics are located in high street, gated residential communities and corporate campuses to provide one-stop healthcare to families with general practitioners and specialists in gynaecology, paediatrics, dermatology, orthopaedics, physiotherapy, psychology and ENT (ear, nose and throat) area.
Launched in 2007 to demonstrate that private capital can be profitably deployed as a tool for effective change, Bamboo manages USD 250 million in the form of two global funds and 46 portfolio investments operating in 25 countries the world over.