Diagnostics Platform Curelo Secures USD 1 Lakh Funding From IIMA’s CIIE.CO
Curelo, a platform that offers patients the convenience of scheduling at-home blood sample collection and receiving blood reports from their preferred labs, has secured funding of USD 1 lakh from CIIE.CO, the startup incubator at IIM Ahmedabad.
The diagnostic platform operates with a team of phlebotomists capable of collecting blood samples within an hour of booking and then delivering them to the chosen laboratory. Curelo also allows patients to select a lab based on factors such as test availability, pricing, and turnaround time.
Vipul Patel, Partner of Seed Investments at CIIE.CO, said, “The fragmented diagnostic market, commanding an 85 per cent market share, is composed of standalone and hospital-based labs. Whereas, the top four corporate diagnostics chains in India hold a mere 6 per cent share. Arpit’s experience in running a chain of multi-specialty hospitals and diagnostic labs gives him deep insights into the customer pain points. We are excited to partner with the Curelo team and look forward to helping them scale their business.”
During its ten months of operation, Curelo has established partnerships with over 1,350 laboratories, processed more than 1,25,000 orders, and is currently achieving a monthly revenue of INR 55 lakh, with a consistent month-on-month growth rate of 30 per cent. In addition to its existing services, Curelo has future plans to expand its presence in radiology and blood bank aggregation services.
Curelo Founder and CEO Arpit Jayswal said, “We are excited to have CIIE.CO back Curelo. Their conviction reflects the immense potential in our platform and the diagnostic aggregator sector. Our primary focus is scaling nationwide, optimizing user experience, and standardizing sample collection, aiming to serve 1000+ home samples daily by year-end. We are keen to have CIIE.CO support us in this journey with their exceptional sector understanding and network”
The investment marks a significant milestone for Curelo and positions the company to continue its growth trajectory in the highly competitive Indian healthcare market.
A recent industry research report indicates that the Indian diagnostics market, which reached a size of USD 10 billion in FY2021, is projected to grow at a compound annual growth rate (CAGR) of 14 per cent. This growth is expected to propel the market to a value of USD 20 billion by FY26.
The driving forces behind this growth are the increasing demographics, urbanization, enhanced penetration, and improved per-test earnings. The Indian diagnostic industry is characterized by a high level of fragmentation, with a presence of over 1,00,000 labs. Within this USD 10 billion market, standalone diagnostic centers hold a 48 per cent market share, followed by hospital-based labs at 37 per cent, with national chains representing a modest 5 per cent share.
The pathology segment contributes 57 per cent to the diagnostic market share, while radiology accounts for the remaining 43 per cent, comprising tests such as computed tomography (CT) scans, magnetic resonance imaging (MRI), and color Doppler ultrasound scans, among others.
While the fragmentation presents challenges related to lab capability, scalability, and quality, it also offers opportunities for the emergence of new business models and consolidation, as outlined in the report titled "Diagnostics: Unraveling the Future," published by Praxis Global Alliance, a management consulting and advisory firm.
Numerous factors contribute to the projected growth in the diagnostics market. These factors encompass the increasing prevalence of chronic diseases, the necessity for regular health monitoring, and a growing recognition of the advantages of self-testing. Furthermore, an aging population, a preference for home-based healthcare, and advancements in point-of-care diagnostics are anticipated to drive sales of various home diagnostic kits, such as cholesterol tests, fertility tests, allergy tests, and sleep apnea tests, from 2023 to 2033.