Vaatsalya, a healthcare services start-up, has received funding to the tune of Rs. 6 crore for its second phase of expansion. The funding is provided by two early stage venture capital firms namely Seedfund and Aavishkaar India (Micro Venture Capital Fund).
The hospital group, which already has three hospitals in Karnataka at Hubli, Gadag and Karwar of 20 beds each, is now gearing up to open another seven more facilities in the State. These seven facilities will also have 20 beds each taking the total strength to 200 beds and the number of hospitals to 10.
The new hospitals will come up in North Karnataka at Raichur, Gulbarga, Bijapur, Haveri, Rannebennur, Shimoga and Sindhanoor in Bagalkot district. The new medical centres, which will be commissioned by end of 2008, will help 2.5 million families in the region. The hospitals will focus on gynaecology, paediatrics, surgery and general medicine besides physiotherapy services.
The key objective of the Vaatsalya Hospital chain is to provide primary and secondary care services in the semi-urban areas, Dr. Ashwin Naik, founder and CEO, Vaatsalya Healthcare Solutions Pvt. Ltd, told Pharmabiz.
"There is a need for efficient and affordable healthcare for the rural population. Our effort to concentrate only in the semi urban regions is a first-of-a kind concept by a healthcare provider", he added.
For Aavishkaar, this is the second round of funds as it had extended Rs. 35 lakh angle assistance for the Vaatsalya project and for Seedfund it is the maiden initiative. Bharati Jacob from Seedfund and P. Pradeep of Aavishkaar will join the Vaatsalya Board.
Despite the presence of corporate healthcare chains, basic healthcare is elusive in semi-urban and rural India. Vaatsalya Hospital set-up in 2005 helped create a financially viable business model that was recognized through the Netherlands Business in Development Challenge India Award where Vaatsalya bagged the recognition under the 'Best Business in the Established Category' for 2007.
"The opportunity to provide high quality healthcare services led us to partner with Aavishkaar and Seedfund. Both the funding agencies have a track record in assisting innovative solution to companies in India," informed Dr. Veerendra Hiremath, co-founder & COO, Vaatsalya.
Vaatsalya's low cost model to deliver high quality healthcare network in small towns was the key factor for Seedfund to support the project," stated Bharati Jacob, partner, Seedfund
"The Vaatsalya model demonstrates commercial viability and we hope to work closely with the company to take their plans forward," stated P. Pradeep, Partner, Aavishkaar.