IPO-bound healthcare startup Portea Medical raises $20 million via rights issue: Report

Portea Medical, a Bangalore-based home healthcare provider, has raised $20 million through a rights issue. The raised capital is aimed at supporting the startup's growth initiatives, particularly as it prepares for an initial public offering (IPO). 

The board has approved the issuance of 69,206,452 Series D1 compulsory convertible preference shares (CCPS) at Rs 23.96 per share, totalling Rs 165.8 crore, Entrackr reported, citing the company's regulatory filings.

Accelerating hiring and expanding presence

The startup plans to use the raised capital for accelerating hiring across various departments, expanding its presence in both existing and new international markets, and enhancing its technological capabilities in artificial intelligence and machine learning.

The funding comes as Portea Medical gears up for its proposed IPO, which aims to raise up to Rs 1000 crore. Notably, Portea Medical has already received approval from the Securities and Exchange Board of India (SEBI).

What does Portea Medical do?

Portea Medical offers a wide range of services, including mother and child care, nutritional consultations, physiotherapy, nursing, lab tests, counselling, and elder care.

The startup boasts a significant operational scale, claiming over one million patient services and conducting 700,000 patient visits annually.

Despite its reach and services, Portea reported a decline in revenue from operations by 3.3% to Rs 145 crore in FY23 from Rs 150 crore in FY22 and recorded a loss of Rs 53 crore in FY23, up from a Rs 40 crore loss the previous year.

Leadership comments

Vaibhav Tewari, Co-Founder and CEO of Portea Medical highlighted the significance of the funding in light of the company's service milestones and future goals.

"Crossing the 1 crore appointment mark is a testament to the dedication and hard work of the entire Portea Medical team and our esteemed partners. We are proud to have played a vital role in supporting individuals through their toughest hours of recovery, care, and bonding," Tewari commented, reflecting on the company's achievements and its impact on patient care.