E-Health on the cusp of exponential growth, to be $16 Bn opportunity by 2025
Bengaluru, India: Redseer recently launched its report on Indian e-Health opportunity. According to the report, the e-Health market in India is forecasted to be US $1.2 billion (Rs.8,400 Crores) in 2020 and is estimated to grow at a CAGR of 68% to reach US $15.8 billion (Rs.110,600 Crores) by 2025. The report further reveals that though the e-health segment is at its nascent stage in India, it has the potential to grow to a very large industry segment in the near future, catering to the healthcare needs of 57 million households.
Medlife is the largest e-Health platform as per the report. This is the 2nd year in a row that Medlife has been called out as the #1 player*. Ananth Narayanan, CEO & Co-founder of Medlife said, “Medlife is poised to end this year with a GMV run rate of $220 million. We believe E-health & not just e-pharmacy is the mantra for this sector. Our lab diagnostic business scale up, expansion of our private label portfolio and the e-consultation platform will allow us to achieve stellar growth from these additional areas. We target to be a $2+ Billion player by 2024.”
Medlife has the widest reach amongst all the e-Health players delivering medicines to 25,000+ pin codes and diagnostics in 400+ towns across the country. According to Ananth, “One of the biggest challenge is these fringe and small players who do not follow the laws and rules properly and cause a wrong perception of the industry as a whole. We are eagerly awaiting the legislation on e-pharmacy to continue scaling the business. We believe that technology is key to provide access & affordability in healthcare. We are committed to making this happen.”
The report also compares standalone e-Health service platforms to Integrated players acting as a ‘one stop shop’ for all healthcare needs. In the customer survey, promoters percentage for integrated players is marginally higher across all key criteria, which shows that the market is transitioning towards ‘Integrated’ players like Medlife. Speaking on this, Mr Ananth said “Higher customer stickiness & the ability to cross sell products & services will lead to higher LTVs from customers. This will drive better unit economics and help us get to operational breakeven this year.”
Medlife aims at simplifying the existing complexities associated with the traditional Indian healthcare supply chain, with focus on outpatient care services. It provides customers with a convenient healthcare experience, offering pharmacy, consultation and diagnostics services through its app & web. With an objective of improving health outcomes for its consumers by making healthcare simple, personal, accessible and affordable, Medlife has brought doctors, pharmacists, phlebotomists and consumers under one digital ambit, through its diverse portfolio of eHealth services.