1mg Raises Additional $15M Funding Led by HBM Healthcare Investments With Participation from Existing Investors

1mg Technologies Pvt Ltd, India’s largest digital health platform which operates mobile app “1mg” on Android/ iOS and the web platform, today announced that it has closed a financing round of ~$15M, led by HBM Healthcare Investments with participation from other existing investors Maverick, Sequoia India, Omidyar & Kae Capital.

HBM had made its first investment in 1mg last year in May 2016, as a part of a top-up round following the Series B financing that was led by Maverick Capital Ventures.

HBM is among the global leaders in healthcare-focused investing with around USD 1.5 billion under management. HBM focuses on development stage, growth and buy-out financings of private companies, as well as investments in public companies.

Dr Andreas  Wicki, CEO of HBM Healthcare Investments said “1mg was HBM's first investment in a digital health platform in India and we are very encouraged about the prospects of the company given the tremendous progress across all dimensions over the last year. 1mg has cemented its clear market leadership in the Indian digital health space. HBM decided to lead the current round and double down on its investment in 1mg, pre-empting any need for the company to seek external capital and keeping the focus on continued growth. As a specialised healthcare investor, we have been monitoring the interesting impact that technology is having in the space of healthcare delivery. In our view 1mg has created a unique platform in one of the fastest growing markets in the world, and this platform can be the foundation of India’s leading healthcare services business in the years ahead. All companies in the healthcare domain are looking for innovative platforms to partner with to connect better with their consumers – very few platforms have managed to achieve the consumer engagement at scale like 1mg has done.”

Existing investors including Maverick Capital Ventures, Sequoia India, Omidyar Network & Kae Capital also participated in the financing round. Matthew Kinsella, Partner at Maverick commented “Digital health is coming of age globally, and Maverick is extremely excited by this space with over 30 investments. 1mg is clearly leading the charge in India, and Maverick along with the rest of the internal investors are keen to ensure the company has sufficient firepower to consolidate its leadership in this large market. This opportunity is a rare combination of being part of a venture that has leadership in the right market, at the right time, and with the right team to build a solid business.”

Prashant Tandon, CEO & co-founder 1mg said, “I am really glad that our investors have chosen to re-affirm their faith in the potential of 1mg. We are truly excited by the opportunity to make a meaningful impact on how healthcare is delivered in India, and we believe that we are on the right path. Making healthcare transparent, understandable, accessible and affordable for consumers is a very important need of the ecosystem and also a huge opportunity to build a strong and sustainable business. Healthcare in India is going through profound changes, and we aspire to be the trusted partner of consumers as they navigate this space.”

The company has previously raised funding from Maverick Capital Ventures, HBM Healthcare Investments, Sequoia Capital India, Omidyar Network, Kae Capital etc.

1mg Raises Additional $15M Funding Led by HBM Healthcare Investments With Participation from Existing Investors

1mg Technologies Pvt Ltd, India’s largest digital health platform which operates mobile app “1mg” on Android/ iOS and the web platform, today announced that it has closed a financing round of ~$15M, led by HBM Healthcare Investments with participation from other existing investors Maverick, Sequoia India, Omidyar & Kae Capital.

HBM had made its first investment in 1mg last year in May 2016, as a part of a top-up round following the Series B financing that was led by Maverick Capital Ventures.

HBM is among the global leaders in healthcare-focused investing with around USD 1.5 billion under management. HBM focuses on development stage, growth and buy-out financings of private companies, as well as investments in public companies.

Dr Andreas  Wicki, CEO of HBM Healthcare Investments said “1mg was HBM's first investment in a digital health platform in India and we are very encouraged about the prospects of the company given the tremendous progress across all dimensions over the last year. 1mg has cemented its clear market leadership in the Indian digital health space. HBM decided to lead the current round and double down on its investment in 1mg, pre-empting any need for the company to seek external capital and keeping the focus on continued growth. As a specialised healthcare investor, we have been monitoring the interesting impact that technology is having in the space of healthcare delivery. In our view 1mg has created a unique platform in one of the fastest growing markets in the world, and this platform can be the foundation of India’s leading healthcare services business in the years ahead. All companies in the healthcare domain are looking for innovative platforms to partner with to connect better with their consumers – very few platforms have managed to achieve the consumer engagement at scale like 1mg has done.”

Existing investors including Maverick Capital Ventures, Sequoia India, Omidyar Network & Kae Capital also participated in the financing round. Matthew Kinsella, Partner at Maverick commented “Digital health is coming of age globally, and Maverick is extremely excited by this space with over 30 investments. 1mg is clearly leading the charge in India, and Maverick along with the rest of the internal investors are keen to ensure the company has sufficient firepower to consolidate its leadership in this large market. This opportunity is a rare combination of being part of a venture that has leadership in the right market, at the right time, and with the right team to build a solid business.”

Prashant Tandon, CEO & co-founder 1mg said, “I am really glad that our investors have chosen to re-affirm their faith in the potential of 1mg. We are truly excited by the opportunity to make a meaningful impact on how healthcare is delivered in India, and we believe that we are on the right path. Making healthcare transparent, understandable, accessible and affordable for consumers is a very important need of the ecosystem and also a huge opportunity to build a strong and sustainable business. Healthcare in India is going through profound changes, and we aspire to be the trusted partner of consumers as they navigate this space.”

The company has previously raised funding from Maverick Capital Ventures, HBM Healthcare Investments, Sequoia Capital India, Omidyar Network, Kae Capital etc.

Coverfox Raises $15M in Series C Round Led by US Insurer Transamerica & Others

Glitterbug Technologies, which owns and operates online insurance brokerage Coverfox, has raised about 96 crore ($15 million) in its series-C round. The funding was led by US insurer Transamerica, with participation from existing investors. The company is also in discussions with Fosun Kinzon Capital, the VC unit of Chinese conglomerate Fosun International, to raise about $5-10 million that could be an extension of the latest round.

The latest round of equity financing values Coverfox between $70 million and $100 million, reported ET. Its current list of investors include SAIF Partners, Accel India and Catamaran Ventures - the family office of Infosys co-founder, NR Narayana Murthy.

Separately, according to the sources familiar with the development, Fosun, along with other investors, could also invest in Acko General Insurance, the company launched by Coverfox cofounder Varun Dua last year.

Last month, Acko raised a $30-million funding in seed round from a clutch of investors, including SAIF Partners, Accel Partners, Catamaran Ventures, former Infosys chief executive Kris Gopalakrishnan and Hemendra Kothari, chairman of DSP Blackrock.

Coverfox, which has largely kept away from the life insurance segment, barring a listings-based model, is now actively considering its entry into the space. The fresh funding raised by the company is likely to hasten its entry into the segment.

So far, Coverfox primarily focuses on the bike and automobile insurance segment, which contributes over 50% of its overall revenue. It clocked premiums of Rs 140-150 crores for the financial year 2016-17.

Cloud Telephony Company Knowlarity Raises $20M in Series C Round Led by Delta Partners

Knowlarity, the leading cloud communications platform in emerging markets across Asia, has announced the successful raise of $20 million in its Series C funding round. The latest investment in Knowlarity, which is Asia’s largest cloud telephony company, was led by Dubai-based private equity firm Delta Partners. The round also saw participation from Knowlarity’s existing investors, Sequoia India and Mayfield, and included a small debt-based investment from Blacksoil and Trifecta Capital. Signal Hill, a leading independent M&A and private capital advisory firm was the exclusive financial advisor on this transaction. The latest investment takes the total funds raised by Knowlarity so far to $41 Million USD making it the most capitalised cloud telephony company in Asia.

The involvement of Delta Partners, which has a deep domain expertise in telecom technology in Africa and the Middle East, as well as its existing investors, underlines the trust that Knowlarity has generated in the global market. The funds raised would be used by Knowlarity to expand into other international markets, make acquisitions and invest in advanced technology products for its customers.

Speaking on the investment, Ambarish Gupta, Founder & CEO, Knowlarity, said, “The success of the latest funding round is a strong indication of the trust our investors have in our vision as well as in our strong focus on robust unit economics, which has seen us recently achieve EBITDA breakeven. We are excited about the investment and the quality of investors coming on board. With the domain expertise they bring on-board, we are confident that we will be able to provide even more innovative Consumer to Business Communication solutions to businesses around the world and establish ourselves as global leaders in the segment.”

Dominic Halfpenny, Partner at Delta Partners Capital, commented, “Knowlarity has established itself as the leading player in the Consumer to Business Communications industry in India, and is now exporting this expertise internationally, thanks to its superior product and relentless focus on customer service. The way customers and businesses communicate is in the midst of a profound transformation, enabled by new communication channels and the advent of Artificial Intelligence. In an age when customers’ demand for immediacy and first-class service is at an all-time high, those businesses with most efficient interactions with clients will benefit from unparalleled superiority in the market. We are excited to participate in this fascinating and fast-evolving industry and look forward to actively supporting the management team at Knowlarity reach the next level of growth both in India and internationally, in the Middle East, Africa and South-East Asia.”

Klaas Oskam, Managing Director of Signal Hill, commented, “We are excited to have acted as the financial advisor on this Series C round of financing for Knowlarity, after having worked with them for their earlier funding round as well. This transaction is testimony to the fact that quality businesses with strong underlying unit economics will continue to find growth capital even amidst more challenging funding environments. Kudos to Ambarish and his team on achieving this major milestone, which will enable Knowlarity to further cement its market leading position in the Indian cloud telephony market; as well as accelerate its international expansion.”

Having pioneered the technology of PSTN cloud telephony in India, Knowlarity currently serves more than 15,000 customers across several emerging markets. The company will look forward to keeping up its aggressive growth and expanding into more markets in the future as it sets its sights on becoming a leading global name in communications technology.