Bengaluru-based Healthtech Startup: Portea Medical likely to raise up to INR 1,000 Cr Via IPO

• ByStartupStory     |    April 11, 2022

Portea Medical, the Bengaluru-based healthtech startup is likely to raise about INR 900-1,000 Cr through an initial public offering (IPO). For this, the healtech startup with SEBI in the next month may file the draft red herring prospectus (DRHP) or offer documents. 

A legal preliminary prospectus, DRHP, serves as an important communication link between the investors, the company, and stakeholders.

Shares worth INR 700 Cr might be sold by the existing shareholders of the startup and new shares of INR 200 Cr might be sold by Portea. 

With the market regulator Securities and Exchange Board of India (SEBI)it files and submits a DRHP or preliminary registration document, when a company plans to raise money from the public by selling its shares to the investors.

However, as per a report, the startup’s balance sheet is not in good shape. The reserves and surplus are in negative and to repay loans it has taken in the past, the funds raised would be used.   

Portea, founded in 2013 by Krishnan Ganesh and his wife Meena Ganesh, offers services, including mother and child care, nursing, lab tests, nutrition and diet consultation, physiotherapy, counselling, elder care for parents and critical care.

Across India, the startup is currently operational in 16 cities including Bengaluru, Chennai, Gurgaon, Ghaziabad, Chandigarh, Delhi, Faridabad, Hyderabad, Indore, Mumbai, Noida, Jaipur, Kolkata, Lucknow, Pune, and Vijayawada, as per its website. 

With 3.4 Mn patients visiting its centers across 16 cities, Portea claims to have served over 500,000 patients and worked with more than 70 hospital partners. 

Meanwhile, from the United States International Development Finance Corporation, Portea secured a commitment for a $7.7 Mn local currency guarantee facility in order to assure repayment of an INR-denominated loan, to be issued by a local commercial bank in India, states a report dated September 2021.

It was reported that in the expansion of the startup’s business by broadening service offerings, through digitalisation, increasing geographical coverage and also developing innovative delivery channels for home-based healthcare, the DFC-guaranteed loan would be utilised. 

Portea brought together more than 1,000 healthcare workers and 500 doctors, directly and via partnerships, during the pandemic in order to deliver home isolation for Covid-19 patients under agreements with the governments of Delhi, Punjab, Chennai, Karnataka, Haryana, and local administrations. 

A collection of lab samples are also provided by the startup and medical equipment for sale or on hire, as well as patient assistance programmes for chronic disease management is offered.

New services such as chemotherapy and dialysis at home in the wake of Covid-19 pandemic has been introduced by the medical platform.

Meanwhile, on the back of telemedicine and preventive healthcare growth, India’s healthtech market is estimated to reach $21 Bn in 2025 states a report. 

Further, the report showed that, primarily driven by fitness and wellness apps and diagnostics solutions, by 2025 preventive healthcare in the country is expected to reach a market size of $170 Bn. 

With more than 5,000 startups, the healthtech sector in India is all set to grow at a CAGR of 39% to touch $5 Bn by 2023, according to a report by RBSA Advisors. And by 2033, it is expected to reach $50 Bn.

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