Redcliffe Labs, an omnichannel diagnostics service provider, has raised $42 million in its Series C funding round, with Denmark-based investment firm IFU leading the round by contributing $20 million. Existing investor LeapFrog added $15 million, while the remainder came from shareholders HealthQuad and Spark Growth Ventures.
This latest funding round follows the Noida-based company’s previous capital raises, including $61 million in its Series B round in May 2022 and $10 million in Series A in April 2021. Other prominent investors in Redcliffe Labs include Schroders, LC Nueva, Chiratae Ventures, and Alkemi Venture Partners.
Redcliffe Labs plans to use the fresh capital to strengthen its presence in tier II and III cities across India. The company is focused on expanding its network of diagnostic labs, collection centers, and home collection services, according to a press release.
To accelerate its growth, Redcliffe has been actively pursuing strategic acquisitions, particularly in North-Western India, and is targeting further expansion across the country through additional partnerships and acquisitions.
In terms of leadership, Redcliffe has bolstered its executive team. Ankur Shah, the former chief finance and strategy officer of Careem (acquired by Uber), has joined as an independent director, while Alka Saxena, formerly of Health Care at Home and Dr. Lal PathLabs, has been appointed CFO.
Currently, Redcliffe Labs operates in more than 220 cities across India through a network of 80 labs, over 2,000 collection centers, and home collection services. The company claims to have served over 7 million patients, spanning tier I, II, and III cities.
Financially, Redcliffe Labs saw its operating revenue surge 2.6 times to ₹347 crore in FY23, up from ₹130 crore in FY22. However, the company’s losses also increased fivefold to ₹345.6 crore from ₹67.7 crore during the same period.
Redcliffe Labs faces stiff competition in the diagnostics market from players like PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr. Lal PathLabs. Nonetheless, the company’s ongoing expansion and strategic moves are positioning it as a major player in India’s diagnostic services sector.
