Diabetologist Dr V Mohan
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Healthcare provider Dr. Mohan’s Diabetes Specialities Centre, on Wednesday, said it had raised $10.23 million (Rs 66 crore) from impact fund Lok Capital and Evolvence India Fund, a private equity fund.
This is the Chennai-based company’s first institutional round of funding since it was founded in 1991 by diabetologist Dr V Mohan and his late wife Dr Rema Mohan.
Dr. Mohan’s is one of the earliest organised players in the diabetes care market in India having setup two hospitals and 23 clinics across seven states in India. The company said that it would use the funds to develop a pan-India presence and grow from a base of 25 healthcare centres to 100 (a combination of hospitals and clinics) in the next four years.
The International Diabetes Federation (IDF) estimates that India would become the diabetes capital of the world with the number of cases of diabetes expected to cross 100 million by 2030, from about 70 million today. The diabetes care market in the country is estimated to be about Rs 12,000 crore in size.
“The diabetes care market is still largely addressed by single doctor set-ups. There is a huge whitespace for an organised care provider to build a pan-India chain offering holistic care for diabetes,” says Venky Natarajan, Managing Partner, Lok Advisory Services. “The team at Dr. Mohan’s has built a scalable and asset light model that can now be rapidly deployed across India. Dr. Mohan’s is a unique asset today in the Indian healthcare landscape and has every chance to remain so.”
Various research has shown that diabetes is a significant cost burden for people at the bottom of the pyramid. “For a low-income Indian family with an adult suffering from diabetes, as much as 25 percent of the family income may be devoted to diabetes care,” read a statement from Dr. Mohan’s.
Ajit Kumar, MD, Evolvence India Fund says, “We believe Dr Mohan and the family has been at the forefront of diabetes care and research in India and have built an excellent network of state of the art centres to provide diabetes treatment and are now poised to further expand across India.”
Dr. Mohan’s Diabetes Specialities Centre is recognized as a WHO Collaborating Centre for non-communicable diseases prevention and control by the World Health Organization, Geneva.