How telemedicine startups are securing funds for healthcare innovation
What's the story
From a futuristic novelty to a lifeline of modern healthcare, telemedicine in India skyrocketed post-pandemic. But behind the screens of virtual consultations lies an untapped world of financing complexities. For startups diving into this tech-health revolution, it's more than stethoscopes and screens—it's about funding innovation, scaling solutions, and sustaining operations. As the nation races to digitise healthcare, exploring smart financing options could be the difference between thriving and surviving. Here's a deep dive into the telemedicine financing in India.
Support
Government grants and subsidies
The government of India provides numerous grants and subsidies to strengthen telemedicine services nationwide. These financial incentives assist startups and established healthcare providers in deploying telehealth solutions. For instance, under the Digital India initiative, eligible companies can secure funding up to ₹2 crore for software development or telemedicine service expansion.
Growth
Venture capital funding
Venture capital firms are eyeing India's telemedicine sector with great interest, recognizing its potential for exponential growth. These firms provide the financial fuel telehealth platforms need to expand operations, enhance technology, and reach more patients. Over the past few years, several Indian telemedicine startups have secured funding from such firms, with investments ranging from $1 million to well over $100 million.
Stability
Bank loans
Indian banks have special loan products for healthcare entrepreneurs who want to start or grow their telemedicine businesses. These loans have low interest rates and easy repayment options that can be adjusted based on the cash flow of the business. For instance, certain banks offer loans up to ₹50 crores with long repayment tenures of up to 15 years.
Community
Crowdfunding platforms
Crowdfunding is the new cool for Indian telemedicine startups. Instead of traditional fundraising, startups are now turning to platforms like Ketto or Milaap to connect directly with potential investors and the general public. This way, they can pitch their idea or project, raise funds, and build a community of supporters who are invested in the venture's success.
Collaboration
Public-private partnerships (PPP)
Public-private partnerships provide a collaborative framework for funding telemedicine initiatives in India. In these models, government agencies partner with private sector firms to deliver healthcare services through digital platforms. Partnerships involve shared contributions from both public and private sectors, leveraging private sector efficiency and innovation to achieve public health goals. This collaboration increases the accessibility and quality of healthcare services.