Healthcare firm AktivOrtho secures pre-Series A investment from Germany’s KfW—-VC Circle News
–BY Lohit Jagwani, VC Circle
Delhi-based International Orthopaedic Rehabilitation and Prevention Company (India) Pvt. Ltd, which provides services like orthopedic rehabilitation and medical fitness under the brand AktivOrtho™, is raising its pre-Series A investment from German development bank Kreditanstalt fur Wiederaufbau (KfW), a top company executive told VCCircle.
“KfW has done the due diligence and now investing just under a million euros (under Rs 8 crore) in AktivOrtho™ . This is our pre-Series A investment and in the next six months we will start looking for a much larger round,” Gerd Mueller, co-founder and chairman of the company said.
According to Mueller, the investment from KfW is a mix of debt and equity. With this, the company will look at scaling up its services in segments like sports medicine and metabolic balance® apart from setting up more centres.
“We plan to launch 15-20 centres in the next five years for which we plan to raise around $3-5 million in 6 to 12 months,” he said.
AktivOrtho, which Mueller started with his wife Gabrielle Seacy, runs two centres in Delhi NCR. It plans to expand further into cities like Bangalore, Hyderabad and Mumbai through hub and spoke model. In this, around six to eight centres would be hubs.
Each centre will be around 10,000 sq ft and house one orthopedic doctor and 30-40 physiotherapists. Currently, its centres clock around 100-130 patients visits every day.
The average spends for a patient per visit is Rs 2,000-10,000 and health plans taken by patients for three months are worth Rs 50,000-75,000. At present, AktivOrtho has a total manpower of around 80 people which will increase to around 250 in two years, according to Mueller.
German development bank KfW provides support to small and medium sized enterprises in sectors like healthcare, housing, infrastructure and environment protection.
In 2013, KfW invested $3.28 million in Invest India Micro Pension Services (IIMPS) which offers pension and insurance products to low income workers.
AktivOrtho is Gerd Mueller’s second venture who is a German national and an orthopedic surgeon. Earlier he co-founded Hanseatic Rueckenzentrum group with a fellow orthopedic doctor Joachim Mallwitz. The company runs six orthopedic rehabilitation centres in Germany. Before starting this venture, Mueller was deputy chairman of one of the largest orthopedic hospitals in Hamburg.