5C Network Secures $3 Million in Funding Round Led by Redwood India Healthcare Fund

• ByStartupStory     |    April 15, 2024

Bengaluru-based medical diagnostics platform, 5C Network, has successfully raised Rs 25.5 crore (approximately $3 million) in a fresh funding round led by Redwood India Healthcare Fund. This marks the first investment for the company in the current year.

The funding round saw the company issue 2,72,241 Cumulative Compulsorily Convertible Preference Shares (CCSPS) at an issue price of Rs 936.67 each, as revealed in its regulatory filing accessed from the Registrar of Companies.

Established in 2016 by Sivasailam and Syed Ahmed, 5C Network specializes in enabling users across India to store, create, and analyze radiology images. It plays a pivotal role in helping hospitals optimize their radiology infrastructure by granting access to radiologists.

The company’s valuation, according to estimates from startup data intelligence platform TheKredible, stands at approximately $30 million post-money.

Prior to this latest investment, 5C Network had previously secured $4.6 million in its Series A round led by Celesta Capital in October 2022.

Despite facing challenges in growth, with a reported 20% decrease in collections to Rs 18.75 crore during the fiscal year ending March 2023, and posting a loss of Rs 19.47 crore during the same period, the company remains optimistic about its future prospects.

With the support of notable investors such as Tata 1mg and Celesta Capital, 5C Network has cumulatively raised over Rs 80 crore to date. Unitus Capital held the largest external stake at 20.8%, followed by Celesta Capital and Tata 1mg. The co-founders, Kalyanasundaram S and Syed Sabbir Ahmed, together held a cumulative 33.9% stake in the company.

The latest funding injection is expected to fuel 5C Network’s expansion plans and bolster its position in the rapidly evolving medical diagnostics sector.

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