Redcliffe Labs, a pan-India omnichannel diagnostics service provider, has garnered as much as $42 million in its Series C round from a host of new and existing investors, per an announcement.
While the round has been led by new investor Investeringsfonden for Udviklingslande (IFU), which is Denmark’s Investment Fund for Developing Countries, its existing backer LeapFrog Investments pumped in another $15 million in the company.
The remaining capital has been committed by Redcliffe Labs’s other existing shareholders, namely HealthQuad and Spark Growth Ventures.
This fresh injection of capital will fuel Redcliffe’s expansion plans, focusing on deepening its presence in Tier II and III cities across India, it said in a statement.
Redcliffe plans to use the capital to open more labs and collection centres along with an expansion of its home collection network. The company has successfully executed strategic acquisitions in north-western India and continues to pursue a pan-India expansion through strategic partnerships and further acquisitions.
It is currently in advanced discussions with potential partner diagnostic chains to deepen the accessibility of quality diagnostics across India and ramp up its market share.
“The Indian healthcare industry, particularly the diagnostics sector, is at an inflection point, presenting growth opportunities,” said Biju Mohandas, Partner and Global Co-Lead for Health Investments, LeapFrog Investments. “Redcliffe Labs stands out in this landscape for its impressive growth trajectory and its commitment to customer-centricity and quality,” he added.
“Our aim is to democratise access to high-quality, affordable, accurate diagnostics for every Indian, with a particular focus on the underserved populations in Tier II and III cities. This funding round is not just a financial milestone; it’s a catalyst for transformative change in India’s healthcare landscape,” said Aditya Kandoi, founder & CEO at Redcliffe Labs.
Meanwhile, Emil Sierczynski, Investment Director & Co-lead for India health investments, IFU, added: “We view healthcare as more than just an investment sector – it’s a fundamental pillar in our strategy to drive meaningful social impact.”
Redcliffe, established in 2018, currently owns and operates over 80 state-of-the-art labs, processing tests from over 2,000 collection centres and home collection services powered by more than 1,000 phlebotomists across over 220 cities in India.
The diagnostics sector in India is increasingly evincing investor interest as firms operating in this sphere carve out their expansion plans. According to data from research firm Venture Intelligence, three private deals worth a total of $29 million have been made in the space so far this year.
Last year, private market players invested $35 million in this sector across seven deals. In 2022, a blockbuster year for dealmaking, $442 million was funnelled into diagnostic companies by private equity and venture capital investors across 14 deals.
The biggest deal in the diagnostics space, however, was recorded in 2021 when Comvest Partners injected $150 million into the Leixir Lab Group. Leixir operates five dental laboratories across the US and a digital design and manufacturing facility in Gurugram, India.
