Ambulance service provider Red.Health raises $20M led by Jungle Ventures

Hyderadbad-based ambulance service provider Red.Health, formerly known as StanPlus, has recently raised $20 million in a Series B funding round. The funding was raised in a mix of debt and equity.

According to Founder and CEO Prabhdeep Singh, approximately 80% of the funds raised were equity, while the remaining was debt.

The funding is aimed at fueling the expansion and technological advancements.

Who are the investors?

The funding round was led by Jungle Ventures, with participation from Alteria Capital, HealthQuad, and HealthX.

“Since our last fundraise, we've made substantial strides in technology development, particularly in refining our dispatch system to ensure seamless operations without delays or errors. With this round, we’re set to scale operations and become a leading integrated medical emergency response platform in India,” said Singh.

Since its inception in 2016, The startup has raised $43 million across various funding stages from investors, including Pegasus FinInvest, Kalaari Capital, HealthXCapital, Hyderabad Angels, N+1 Capital, and a few individual investors.

What is the purpose of fundraising?

Founded in 2016, Red.Health plans to channel the freshly acquired capital into several key areas. Firstly, the startup aims to innovate its product offerings and advance its technology. 

A major focus will be on enhancing its dispatch system to minimize human errors and optimize response times. Additionally, the startup is developing an AI-powered recommendation engine to improve efficiency during medical emergencies.

The funds will predominantly support Red.Health's expansion across 40-50 cities and enable partnerships with over 500 hospitals.

What does Red.Health do?

Red.Health offers a comprehensive suite of services under four verticals: RED Ambulances, RED Assist, RED Priority Clinics, and RED Academy.

The startup is also exploring a subscription-based model that promises quick and accessible medical assistance, boasting a fleet that includes 450 managed ambulances, 6,000 ‘Saathi’ road ambulances, and 10 aircraft for air ambulance services.

The startup, which runs both air and road ambulance services, currently operates over 100 hospitals in 20 cities. 

How is Red.Health performing financially?

Red.Health has demonstrated significant financial growth. In the fiscal year ended March 2024, the company reported revenues of Rs 100 crore and anticipates doubling this figure by FY25.

The previous fiscal year saw a 45% revenue increase to Rs 67 crore from Rs 46.13 crore, although losses also escalated significantly.

“We foresee that in the long term, every Indian should be able to access emergency response via just a click of a button. Leveraging our deep healthcare experience and network, we are excited to partner with Red.Health to build the most reliable emergency platform and ecosystem in India,” Seemant Jauhari, Partner, Healthcare, at Jungle Ventures, said.