CureBay, a hybrid healthcare platform from Odisha, secured US$21 million in a funding round led by Bertelsmann India Investments, with participation from British International Investment and Elevar Equity.

Founded in 2021, CureBay aims to improve healthcare access in rural India by expanding to Jharkhand, Bihar, Uttar Pradesh, and Madhya Pradesh. 

These e-clinics operate as satellite centers equipped with medical devices, pharmacists, nurses, and point-of-care tests to serve remote areas using an asset-light model. 

The new funds will also boost CureBay’s technology, focusing on AI and data tools for predictive care. 

The funding supports CureBay’s mission to bridge healthcare gaps in underserved regions through scalable tech-enabled clinics.

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🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Rural healthcare in India represents a massive underserved opportunity

India’s healthcare landscape shows a significant urban-rural divide, with 82% of outpatient visits occurring in the private sector despite public healthcare spending remaining low at only 0.9% of GDP 1.

This gap creates both a social need and business opportunity, as demonstrated by the healthcare technology segment doubling from $3 billion in FY2020 to $7 billion in FY2023 2.

CureBay’s focus on Odisha, one of India’s less developed states, before expanding to other rural-dominant states like Jharkhand and Bihar, represents a strategic approach to addressing this market inefficiency.

The COVID-19 pandemic has accelerated telemedicine adoption in rural areas, creating a more receptive environment for tech-enabled healthcare models like CureBay’s e-clinics 2.

With over 40% of patients admitted to hospitals forced to borrow money or sell assets to cover medical expenses, affordable models like CureBay’s address both accessibility and cost barriers simultaneously 1.

2️⃣ Tech-enabled hybrid healthcare models are showing early signs of commercial viability

CureBay’s revelation that clusters of 50 clinics break even in 18-20 months, with two of three clusters already profitable, demonstrates the potential sustainability of rural healthcare models when properly structured.

Their asset-light approach of e-clinics with Rs 8.5 lakh setup costs contrasts sharply with traditional healthcare infrastructure, allowing faster scaling and reduced capital requirements.

This reflects broader industry recognition that technology can overcome infrastructure limitations, as government initiatives are now promoting AI-driven digital health services with significant funding for broadband connectivity in rural health centers 3.

Solutions like Remidio’s portable AI platform for diagnosing eye diseases show how technology enables healthcare workers to deliver real-time diagnostic results in remote locations without specialist doctors present 4.

The transition from purely digital solutions to hybrid models with physical touchpoints addresses a key limitation of many healthtech ventures in rural contexts, where digital literacy and connectivity remain challenges.

3️⃣ Investment trends show growing confidence in healthtech solutions for underserved markets

CureBay’s $21 million funding round reflects a broader investment trend, with 40% of all healthcare deals in 2024 directed toward seed-stage companies, indicating strong early-stage momentum in healthtech 5.

The participation of both international investors (Bertelsmann, British International Investment) and domestic firms (Elevar Equity) signals growing global recognition of India’s rural healthcare market potential.

This investment pattern aligns with government priorities, as reflected in the significant allocation to the Ayushman Bharat scheme in the 2023-24 Union Budget, which aims to cover over 500 million economically disadvantaged people 2.

The overall healthtech startup ecosystem in India has grown to over 1,300 companies as of 2019, with the market expected to reach $10 billion by 2025, driven by increasing demand for affordable healthcare solutions 6.

With AI integration in healthcare projected to grow to a $1.6 billion market and contribute $25-30 billion to India’s GDP by 2025, investors are positioning themselves for substantial returns from companies addressing fundamental healthcare access issues 7.

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