Healthcare platform Red.Health has acquired $20 million in Series B funding, which is a combination of debt and equity, as per a report by the Economic Times. The funding round was led by Jungle Ventures, an independent venture capital firm in Singapore.
The round also saw the participation of other investors, including Alteria Capital, HealthQuad, and HealthX. Speaking to the Economic Times, founder and CEO Prabhdeep Singh said that 80 per cent of the raised amount was in the equity portion.
The new funds will be used by the company to advance its technology, improve its dispatch system, and innovate new products. In January 2022, the Hyderabad-based business raised $20 million in its Series A round, which was headed by Healthquad, HealthX, and Kalaari Capital. Since its founding in 2016, Red.Health has raised $43 million in funding from its Seed to Series B round.
The start-up is also working on a recommendation engine driven by artificial intelligence that would offer action suggestions in case of a medical emergency. The majority of the recently raised funds will be used to partner with more than 500 hospitals and extend RedHealth's services to 40–50 cities.
“Since our last fundraise, we've made substantial strides in technology development, particularly in refining our dispatch system to ensure seamless operations without delays or errors. With this round, we’re set to scale operations and become a leading integrated medical emergency response platform in India,” said Singh.
In September 2023, Morning Context reported, “RED Health’s ambulance business is struggling to scale.” As per the report, the Hyderabad-based firm increased its staff by three times in the last year to grow. However, after dealing with the harsh reality of the ground, it was now letting hundreds go. Denying any salary delay or layoff, Singh said, “We have only laid off two people in the last three months for ethical reasons. Nothing that is not usual, absolute reallocation of resources.”
Similarly, in February 2024, Mint reported that RedHealth was struggling to pay salaries. The report said that the company delayed its January salary by only 50 percent so far. However, Singh has repeatedly denied signs of any strain in the business. RedHealth states that it generated income of Rs 100 crore in FY24 and plans to double that amount in FY25. The revenue of Red Health's Indian subsidiary, which is registered in Singapore, increased by 45 per cent to Rs 67 crore in FY23 from Rs 46.13 crore in FY22.
