HealthKart, an online health care company, has raised $14 million in a Series B funding round from Sequoia Capital and Intel Capital, reports NextBigWhat. The report also states that Intel Capital invested about $8 million in the series B round, while Sequoia invested the rest. When we contacted, Mohit Bhatnagar of Sequoia Capital to comment on the investment, he said it is too early for them to comment on such a rumour. He did not deny the news either. Sameer Maheshwari, Co-Founder, HealthKart, has also not responded. We’ll update in case something is confirmed.
Post this investment, HealthKart’s total funding raised in last two years stands at $22.5 million. HealthKart had previously raised Rs. 27 crores from Sequoia Capital and Omidyar in a Series A funding round, according to a report by VCCircle. Prior to that, HealthKart raised $1 million from KAE Capital and Sequoia in its seed round. The company claims to have a database of 1,00,000 drugs in its new marketplace. It is worth noting that Healthkart had acquired its competitor MadeInHealth, a year ago in March 2012, eliminating competition.
Pivoted to Marketplace for an Investment?
Earlier this week, we had reported that HealthKart has pivoted its generic drug search engine, HealthkartPlus, to a marketplace that now offers prescribed drugs. It appears that the company changed its model due to the FDI regulations for ecommerce companies.
Funding Environment in Ecommerce Industry
HealthKart is not the first in the list of ecommerce companies that have been pivoting to become a marketplace. The ban by the Indian government on ecommerce companies with FDI to sell products online, has led several ecommerce companies including Snapdeal, Infibeam to pivot to become marketplace. In December 2012 we had reported that the Enforcement Directorate had raided Flipkart offices on November 30, to investigate alleged violation of FDI regulations. However, Flipkart claimed that no such raid took place.
Recently, speaking to Medianama on the funding environment in ecommerce companies, K.Vaitheeswaran, Founder & CEO of Indiaplaza -“Because of the outcome of these investigations, overall investors want to stay away. Even though we have a model which is above board, we are struggling to convince investors because many investors are saying that they want to see how the investigations play out before they start writing cheques.“