On May 19, 2022, a drone traveling from Gyansu in Uttarkashi, a small, hilly village in Uttarakhand, to Vivek Vihar in Dehradun, the state’s capital, transported a patient’s blood sample in a 5 kilogram temperature-controlled payload. The first commercial drone flight covered a 60-kilometer airborne route in 88 minutes, one battery change, as opposed to the six hours it would have taken by car. The sample was examined at the diagnostics facility of Redcliffe Lab in Dehradun, and the business provided the customer the results the same day. The endeavor was a result of Redcliffe Labs’ partnership with drone delivery business Skye Air Mobility. The project will include two daily flights from Uttarkashi to Dehradun. The partnership supports Dheeraj Jain’s vision for Redcliffe Labs, which calls for granting access to diagnostic medical services. Serial entrepreneur Dheeraj developed Redcliffe Capital, Peesafe, and Crysta, a platform for end-to-end prenatal diagnostic services, in addition to the investment firm. In 2018, he incorporated Redcliffe Labs, a division of Redcliffe Lifetech, a US-based company. Noida, Uttar Pradesh, serves as the startup’s administrative center.
The point of origin
The passing of two family members to cancer was a turning point in Dheeraj’s life. He was prompted by this to consider India’s healthcare system and the reasons why many people lack access to diagnostic facilities. Despite the existence of over one lakh labs, the Indian diagnostic business is highly fragmented and under-penetrated, according to a report by Edelweiss. Hospitals, independent businesses, and larger chains make up the industry’s ecology, which is still mostly unorganised. Additionally, according to the survey, structured diagnostic chains like SRL Diagnostics, Metropolis Labs, and Dr. Lal Path Labs only hold a 16 percent market share. About 55 percent of revenue is determined by recommendations from physicians and medical facilities, which ultimately results in higher rates. Due to the low test taker rate, the market also remains untapped. Dheeraj’s initial solution to the issue was to provide extremely specific tests at its labs. Genetic testing was the first of them. The business established a facility in Delhi, a clinical team, and a suite of tests in 2018, including genetic testing and diagnostics for maternal health. The firm entered the market towards the end of the year, focusing on Delhi-NCR, Hyderabad, and Pune. By sending samples to these labs for testing, scientists and physicians were able to guarantee quicker turnaround times and more reasonable costs for their patients. The firm eventually began providing semi-regular testing like thyroid and vitamin tests in addition to normal tests like blood, urine, liver, and kidney tests.
The crucial moment
The company has not been testing frequently until recently. Because we were primarily concerned with sequencing, we were still a pretty tiny team, according to Dheeraj. All of that, however, altered in 2020 when the COVID-19 pandemic occurred. The new virus’s genome needed to be sequenced, and Redcliffe was prepared to rely on its two-and-a-half years of experience. Redcliffe was able to carry out COVID-19 testing thanks to the pre-existing PCR (Polymerase Chain Reaction) infrastructure at the startup. Additionally, the epidemic changed consumer habits. Consumers were now undergoing their initial testing at home, according to Dheeraj. The organization was forced to reflect on its bigger testing portfolio as well as how the market was changing in response to home collection services, which were previously only used by a small number of clients. The team chose to modify its operations to this business line because it saw a tremendous possibility. He said that in 2020, the business put time and effort into creating the infrastructure needed to transport samples from homes to labs and deliver results on the same day. Redcliffe Lifetech received around $2 million in Pre-Series A fundraising in March 2021 from companies like Y Combinator, Alkemi Venture Partners, and LetsVenture, among others.
What services does it provide?
Straight-to-consumer, straight-to clinics and hospitals, specialty collection centers, radiological tests, and IVF are the five services that Redcliffe Lifetech provides. With 700+ walk-in wellness and collection centers across India and more than 30 labs, it offers a home sample collection service in more than 120 cities. Redcliffe Lifetech receives about 40% of its revenue from online test reservations. The business estimates that its current annual revenue rate is between $55 and $60 million, with a target growth rate of $100 million by September 2022. Information on income from January 30, 2021, to March 31, 2021, is shared in the most recent filings with the Registrar of Companies. Consumers still need to arrange testing, which is a task, even though many diagnostic labs provide home collection services. Phlebotomists at Redcliffe Labs use an app that instructs them on the most efficient approach to collect samples, which is completed by noon. Two samples are collected, then given to a rider who transports them to the lab in temperature-controlled containers that can be tracked in real-time. The startup’s staff of 2,500 individuals on the ground collects around 5,000 samples per day.
Funding and the future Path of Redcliffe
The firm raised $61 million in May 2022 with the help of LeapFrog Investments. It raised an additional $10 million in 2021, which according to Dheeraj helped construct the infrastructure. It has raised more than $73 million thus far. By focusing on Tier-III and Tier-IV cities, the corporation now intends to reach 500 million Indians in the following five years. A further 75 labs will be added, including ones in Kolkata and Chennai. He wants 15,000 home collections every day from 3,000 active collection centres by the end of 2023. According to research, the diagnostic labs market in India is a $12.3 billion business that is expanding at a CAGR of 11.65 percent. By 2027, it’s projected to increase to $25.7 billion.
Conclusion On Redcliffe
Redcliffe Labs uses its network of more than 400 off-line collection facilities in addition to other strategies to increase volume at its labs. Redcliffe makes it simple for emerging consumers to take control of their health by delivering tests that can be ordered via smartphones and have findings sent in 24-48 hours, which lowers the burden of non-communicable diseases.
FAQs About Redcliffe
Dheeraj Jain. Redcliffe Labs was founded by him with the goal of creating the most cutting-edge diagnostics platform that would be accessible to everyone. In just 4 years, it has grown to become one of India’s top diagnostic service providers.
The fastest-growing diagnostics service provider in India is Redcliffe Labs (a division of Redcliffe Lifetech Inc., located in the US), which offers home sample collection services in more than 60 cities and operates more than 20 labs around the country. Redcliffe Labs has processed more than 100,000 tests every day and has assisted over a million Indians.
An unlisted private company called Redcliffe Lifetech Private Limited was established on January 30, 2021. It is situated in Gautam Buddha Nagar, Uttar Pradesh, and is categorised as a private limited business. Its total paid-up capital is INR 3.56 million, compared to its authorised share capital of INR 10,000,000.
Redcliffe Labs, a provider of diagnostic services, has extended by two years its agreement with cricketer Gautam Gambhir to serve as its brand ambassador. Gambhir will continue to serve as Redcliffe Labs’ brand ambassador as part of the collaboration, promoting the business’ diagnostic services across India.
The companies that compete with Redcliffe Hygiene include Henkel, Dabur India, Godrej Consumer Products, and HUL.
