Noida, India – Redcliffe Labs, an omnichannel diagnostics service provider, has secured $42 million in a Series C funding round led by IFU, a Denmark-based investment firm, which contributed $20 million. The funding round also saw participation from existing investor LeapFrog, which added $15 million, and support from existing shareholders, including HealthQuad and Spark Growth Ventures.
This latest investment follows Redcliffe Labs’ previous funding rounds, including $61 million in Series B in May 2022 and $10 million in Series A in April 2021. Notable investors such as Schroders, LC Nueva, Chiratae Ventures, and Alkemi Venture Partners also participated in earlier rounds.
The fresh capital will enable Redcliffe Labs to drive its expansion plans, particularly in tier II and III cities across India. The company plans to establish more labs and collection centers and expand its home collection network, according to a press release. Redcliffe Labs has already executed strategic acquisitions in North-Western India and continues to pursue PAN-India expansion through partnerships and further acquisitions.
In addition to its financial growth, Redcliffe Labs has strengthened its leadership with the appointment of Ankur Shah, former Chief Finance and Strategy Officer of Careem (acquired by Uber), as an independent director. Alka Saxena, formerly of Health Care at Home and Dr. Lal PathLabs, has been appointed as the company’s new Chief Financial Officer.
Redcliffe Labs currently operates in over 220 cities across India, with a network of 80 labs, over 2,000 collection centers, and home collection services. The company claims to have served more than 7 million patients across tier I, II, and III cities.
The company’s operating revenue surged 2.6 times to Rs 347 crore in FY23, up from Rs 130 crore in FY22. However, Redcliffe Labs’ losses jumped fivefold to Rs 345.6 crore from Rs 67.7 crore over the same period.
With this new investment, Redcliffe Labs plans to strengthen its position in the diagnostics market in India, where it competes with notable players such as PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr. Lal PathLabs.