Venture capital-backed doctor consultation platform DocsApp has merged with the Bengaluru-based digital consumer health business of MediBuddy, according to a joint statement.
The merged firm has received $20 million (Rs 150 crore) as part of its Series B round of funding. However, the financial details of the merger per se were not disclosed.
The funding round in the merged company was led by Bessemer Venture Partners and new investors such as Fusian Capital, Japanese insurance giant Mitsui Sumitomo's VC arm Mitsui Sumitomo Insurance Venture Capital and Tokyo-based VC firm Beyond Next Ventures.
Other existing investors including Milliways Ventures and Rebright Partners also participated in this round.
The fresh capital will be used to strengthen its doctor base, patient reach, product and technology.
The merged company has a partner network of over 90,000 doctors, 7,000 hospitals, 3,000 diagnostic centres and 2,500 pharmacies covering over 95% of all pin codes in India.
Bengaluru-based DocsApp, operated by Phasorz Technologies Pvt. Ltd, was founded in 2015 by IIT Madras alumni Satish Kannan and Enbasekar Dinadayalane. MediBuddy is the technology platform of Medi Assist, which was founded in 2002.
In 2017, DocsApp had raised Series A funding from Bessemer Venture Partners, besides Japanese investors TechMatrix Corporation and DeNA networks. MediBuddy's parent Medi Assist Healthcare Services Ltd also counts Bessemer as one of its backers.
Online doctor consultation companies have seen a surge in traction during the lockdown imposed by the government to contain the spread of the coronavirus pandemic.
Investor-backed Practo and Lybrate said their traffic had increased during the lockdown multifold, according to a VCCircle analysis. Hospital chains such as Fortis, Wockhardt Hospital and Prime Hospitals, which has a joint venture with Aster DM Healthcare, had also commenced offering online consultations.
The recent guidelines on telemedicine practice issued by the ministry of health and family welfare on 25 March are expected to give a further boost to this segment.
The guidelines allow data analytics and tech startups to offer innovative features not just to assist the registered medical practitioners in providing consultation services but also to enhance user experience.
