Diagnostics startup Healthians plans to ramp up its international offerings this year. 

In November 2023, the company expanded its diagnostics services to a few African countries through tie-ups with local partners such as insurance companies and labs. These partners outsource specialised and complicated tests that are unavailable in their geographies. They also ensure that the pathology samples are sent to Healthians’ labs in India within 48 hours, which then test and send the reports to these partners. 

Since the launch of this service, the healthtech startup has seen the demand for international services go up by 30%. It now plans to open its own labs in at least two countries by the end of this year. These will be territories with little or no access to accurate and advanced diagnostic care.

In an interaction with FE, Deepak Sahni, founder and CEO of Healthians said that in his 18-year-long career in healthcare he has seen many patients travel from countries like Africa to India for surgeries and other consultations. But, 50% of those come with a wrong diagnosis. This pushed him to start offering services to underserved countries outside India.

“It is better to get a correct diagnosis in their own country than to come here and get it done the second time or get treated for wrong ailments,” he said.

The WestBridge Capital-backed startup also anticipates significant growth opportunities in tier 2 and 3, driven by rising healthcare awareness, increasing digital penetration and unmet healthcare needs.

“We aim to extend our geographical footprint to more underserved markets of tier 2 and 3 cities, ensuring that quality healthcare services are within reach for everyone, regardless of their location,” Sahni said.

At present, 30-40% of the company’s revenue comes from tier 2 and 3. It anticipates the number to double in the next one-and-a-half years.  “The shift from unorganised to branded diagnostics like ours has become faster post-Covid and it will continue to increase. We see the trend in non-metros as well and we are confident that a significant market share in the branded play will come to us,” he added.

According to Tracxn data, there are 131 clinical laboratory chain companies in India, which include Dr Lal PathLabs, Redcliffe Labs, Thyrocare, Orchard Healthcare, Metropolis India.

Healthians also started a mobile healthcare service called ‘Health on Wheels’ in May 2022, which has seen a lot of uptick, it claims. The mobile service has so far travelled around 26,000 km and conducted over 300 camps across the country.

Healthians derive 90% of revenue from diagnostics services, complemented by 10% sales of supplements and other ancillary services. “Beyond diagnostics, we envision becoming a comprehensive preventive healthcare platform. Our goal is to offer holistic health solutions that cater to not just diagnostic needs, but also help individuals maintain and improve their health through lifestyle guidance and management,” Sahni said.

Founded in 2014, Healthians initially operated as an aggregator, partnering with various labs. In 2015, it pivoted to a pure-play diagnostics company establishing its self-owned NABL and CAP-accredited labs. The company also has its own phlebotomy team with 1,200 members and ebotomists which allows it to maintain stringent control over the quality of sample collection. It also has over 30 doctors and health coaches in its team.

The company achieved break-even by the end of FY23. According to its financial statements filed with the Registrar of Companies, the company’s revenue from operations increased 34.13% to `224 crore in FY23 from `167 crore in FY22. 

At the onset of the previous fiscal year, the startup had set its sights on an average revenue run rate hovering around Rs 450-500 crore. Talking about why it missed the target, Sahni said, “As we ended the year, our overall revenue was aligned remarkably close to our initial projections. However, our objectives throughout this journey were not confined to merely hitting a revenue target”.

He added that in the last 12-15 months the team has been channelling its efforts towards manoeuvring the company to a position of profitability.