Redcliffe Labs, an omnichannel diagnostics provider, has successfully raised $42 million in its Series C funding round, led by Denmark-based IFU, which contributed $20 million. Existing investor LeapFrog added $15 million, while HealthQuad and Spark Growth Ventures also participated.
This funding follows Redcliffe’s previous rounds, including a $61 million Series B in May 2022 and a $10 million Series A in April 2021. Other key investors in Redcliffe Labs include Schroders, LC Nueva, Chiratae Ventures, and Alkemi Venture Partners.
The newly acquired funds will be utilized to support Redcliffe’s aggressive expansion plans, focusing on increasing its presence in Tier II and III cities across India. The company aims to expand its network of labs, collection centers, and home collection services to boost accessibility in underserved areas.
Redcliffe has also pursued growth through strategic acquisitions, particularly in North-Western India, and is looking to further expand PAN-India through similar partnerships and acquisitions. Strengthening its leadership team, Redcliffe has appointed Ankur Shah, the former Chief Finance and Strategy Officer at Careem, as an independent director, and Alka Saxena, formerly of Dr. Lal PathLabs, as Chief Financial Officer (CFO).
Currently, Redcliffe operates in over 220 cities across India, with 80 labs and more than 2,000 collection centers, offering home services as well. The company claims to have served over 7 million patients across Tier I, II, and III cities.
Financially, Redcliffe saw its operating revenue grow 2.6 times to ₹347 crore in FY23, compared to ₹130 crore in FY22. However, its losses increased fivefold to ₹345.6 crore, up from ₹67.7 crore in the previous fiscal year.
Redcliffe Labs faces strong competition in India’s diagnostics market, contending with key players like PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr. Lal PathLabs as it continues to expand and strengthen its market presence.
Summary:
- Redcliffe Labs raised $42 million in Series C funding, led by IFU with contributions from LeapFrog, HealthQuad, and Spark Growth Ventures, aiming to expand in Tier II and III cities.
- The company plans to expand its network of labs, collection centers, and home services, while pursuing acquisitions to grow its presence PAN-India.
- Redcliffe’s operating revenue surged 2.6 times in FY23, though its losses increased fivefold, highlighting challenges amidst expansion efforts in a competitive diagnostics market.