Elderly care startup Kites Senior Care raises Rs 45Cr in funding from Ranjan Pai

Kites Senior Care, an emerging leader in the provision of geriatric care services, has raised Rs 45 crore in a Series A funding round led by Ranjan Pai, the chairman of Manipal Education and Medical Group (MEMG), through his family office.

The startup will use the raised capital to expand its operations in existing cities like Bengaluru, Hyderabad, and Chennai and to venture into three new cities across Southern India.

Expansion and growth strategy

The company's ambitious expansion and growth strategy involves a total investment of Rs 65 crore. Of this, Rs 45 crore comes from Pai, with the remaining Rs 20 crore contributed by the company's promoters. 

Post-investment, Pai will hold a 44% stake in Kites Senior Care. The startup, founded in 2016 by Rajagopal and Reema, is known for its comprehensive range of services tailored for the elderly, including post-operative care, palliative care, and dementia care, offered both in care facilities and at home.

Scaling operations and revenue projections

With a current team of 400 care professionals, Kites Senior Care plans to expand its workforce to over 1,500. The startup aims to increase its bed capacity to over 1,000 within the next six quarters, up from 340.

The expansion is expected to quadruple the company's revenue to approximately Rs 175 crore upon achieving 80 to 85% occupancy in its facilities. Its economic model predicts a cash break-even point at 50% occupancy within 12 months of operation, with a unit-level EBITDA of 27 to 30% at peak occupancy levels.

Leveraging technology for enhanced care

In addition to physical expansion, Kites Senior Care intends to enhance its technological capabilities. The startup plans to complete the pilot expansion of its tech platform 'seniorshield,' which incorporates wearable technology from Titan Fastrack. 

The investment by Ranjan Pai, who has previously emphasized the role of private equity in boosting the healthcare sector, highlights the growing recognition of the geriatric care market's potential.

Valued at over $20 billion and growing at an annual rate of more than 10%, the geriatric care sector is poised for significant expansion, especially in India, where the elderly population is expected to double by 2050. Despite being in its nascent stages, the industry's growth is fueled by startups like Kites Senior Care, which are dedicated to addressing the complex needs of the ageing population.