Omnichannel diagnostics service provider Redcliffe Labs raises $42 million in a Series C round

Noida-based omnichannel diagnostics service provider Redcliffe Labs has raised $42 million in a Series C funding round led by Denmark’s Investment Fund for Developing Countries (IFU).

IFC invested $20 million, followed by LeapFrog Investments with $15 million. The remaining capital came from the existing investors HealthQuad and Spark Growth Ventures.

The company plans to use the raised capital for expansion, with a focus on increasing its presence in Tier II and Tier III cities across India.

“Our aim is to democratise access to high-quality, affordable, accurate diagnostics for every Indian, with a particular focus on the underserved populations in Tier II and III cities. This funding round is not just a financial milestone; it’s a catalyst for transformative change in India’s healthcare landscape," said Founder and CEO, Aditya Kandoi.

Expanding access to diagnostics in underserved areas

With this round of funding, Redcliffe Labs aims to enhance access to affordable and high-quality diagnostics, particularly in underserved areas of India.

The new funds will support the opening of additional labs and collection centers and the expansion of the company’s home collection network.

Redcliffe has made some strategic acquisitions in North-Western India and is actively exploring partnerships with other diagnostic chains to further strengthen its market position across the country.

"With this raise, we’re poised to increase accessibility to advanced diagnostic services across the nation with a commitment to empower individuals with the knowledge and tools they need to take charge of their health. By bringing cutting-edge diagnostics to the doorsteps of millions, we’re nurturing a healthier Bharat," Kandoi added.

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Strengthening leadership and governance

As part of its broader growth strategy, Redcliffe Labs has made key appointments to its leadership team.

Ankur Shah, who has over 27 years of experience and was previously the Chief Finance and Strategy Officer at Careem, has joined the board as an Independent Director.

Additionally, Alka Saxena, who has worked with companies like Health Care at Home and Dr. Lal PathLabs, has been appointed as Chief Financial Officer (CFO).

Redcliffe Labs' financial performance

Redcliffe Labs reported a revenue of Rs 347 crore for FY23, up from Rs 130 crore in FY22.

Despite the significant revenue growth, the company faced widening losses, with net losses increasing to Rs 345.6 crore from Rs 67.7 crore during the same period.

It's worth noting that the diagnostics sector in India is highly competitive, with major players like PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr Lal PathLabs. 

However, the Noida-based company has distinguished itself through its focus on expanding access to affordable diagnostics, particularly in smaller cities and rural areas.

Market presence

Founded by Aditya Kandoi and Dheeraj Jain, Redcliffe Labs claims to own and operate more than 80 state-of-the-art labs, processing tests from 2,000+ collection centres and home collection services powered by 1,000+ phlebotomists across 220+ cities in India.

Investors comment

Emil Sierczynski, Investment Director & Co-lead for India health investments, IFU, said, “We view healthcare as more than just an investment sector – it’s a fundamental pillar in our strategy to drive meaningful social impact. Redcliffe’s innovative approach to diagnostics has the potential to touch millions of lives, bringing essential health services to previously underserved communities. This aligns perfectly with our mission to support businesses that create lasting positive change."

Biju Mohandas, Partner and Global Co-Lead for Health Investments, LeapFrog Investments, said, “The Indian healthcare industry, particularly the diagnostics sector, is at an inflection point, presenting growth opportunities. Redcliffe Labs stands out in this landscape for its impressive growth trajectory and its commitment to customer-centricity and quality."

"Their NABL accreditation and adherence to Six Sigma practices showcase their dedication to excellence, creating a significant impact for millions of patients. Redcliffe’s rapid progress also underscores the drive, resilience and quality of their team," Mohandas added.