Testing Lab Company Orange Health Labs Clocks In 100% Revenue Growth In Past 2 Years | CNBC TV18

Summary

Orange Health Labs, a diagnostic chain launched in January 2021, has grown rapidly with 100% revenue growth year-on-year, achieving a revenue run rate of ₹100 crore by September 2024. The company, backed by Axel India with a total investment of over $10 million, has expanded its at-home testing services across multiple cities. The co-founders attribute their success to focusing on consumer convenience, offering diagnostic services at home within 60 minutes. Orange Health aims to further expand geographically and possibly into other healthcare verticals, tapping into India's growing $15 billion diagnostics market.

Takeaways

• 🚀 Orange Health Labs launched in January 2021 and has achieved over 100% year-on-year revenue growth in two years.
• 💰 The company has raised a total of $35 million, with Accel India leading the $7 million Series A round and investing over $10 million overall.
• 🏥 Orange Health Labs specializes in at-home diagnostic services, promising tests within 60 minutes and results within six hours.
• 🌍 Initially launched in Bangalore, Orange Health has expanded to multiple cities and captured significant market share.
• 📈 The diagnostics industry is valued at $15 billion in India, growing at 15% annually, and Orange Health aims to capitalize on this growth.
• 🔍 Accel India invested in Orange Health with the belief that the company has the potential to touch millions of lives and become a trusted household name.
• 🕒 Venture capital investments like Accel's typically have a horizon of 7-10 years, expecting large outcomes for companies like Orange Health.
• 📊 Orange Health plans to focus on expanding within the diagnostics sector before moving into other healthcare verticals.
• 🏙️ Currently operational in four cities, Orange Health plans to expand to more cities in India, including tier 2 and tier 3 markets.
• 🤖 While AI isn't a necessity, Orange Health may explore opportunities in technology-driven healthcare solutions as it grows.

Q & A

What is Orange Health Labs and when did they start operations?

Orange Health Labs is a diagnostic chain that started operations in January 2021.

What has been the revenue growth of Orange Health Labs over the past two years?

The company has seen a revenue growth of over 100% year-on-year in the past two years.

What is Orange Health Labs' current revenue run rate as of September 2024?

As of September 2024, Orange Health Labs has achieved a revenue run rate of approximately ₹100 crore.

How much funding has Orange Health Labs raised so far and who has been their main investor?

Orange Health Labs has raised a total of $35 million so far, with Accel India leading their Series A round and contributing over $10 million in total.

What unique service does Orange Health Labs offer that differentiates them from traditional diagnostic labs?

Orange Health Labs offers home-based diagnostic services, with the ability to test patients at home within 60 minutes and provide reports within six hours.

How has Orange Health Labs expanded since its launch in 2021?

Orange Health Labs has expanded from its initial operations in Bangalore to multiple cities across India, becoming the largest diagnostic lab in Bangalore within 12 months.

What is Accel's investment horizon for early-stage companies like Orange Health Labs?

Accel’s investment horizon for early-stage companies typically spans 7 to 10 years, allowing the companies time to grow and potentially touch millions of lives.

What market potential does Accel see in the diagnostic sector in India?

Accel sees significant potential in the diagnostic sector, noting that it is currently a $15 billion market growing at 15% year-on-year, with projections to reach $40 billion over the next decade.

Is Orange Health Labs considering expansion into other healthcare verticals?

Orange Health Labs is currently focused on the diagnostic market but is open to expanding into other healthcare verticals in the future to help doctors diagnose patients more effectively.

What is Accel's approach to investing in healthcare companies with respect to AI?

Accel does not require companies to use AI, but they focus on solving real consumer problems deeply using technology, with AI being a bonus if applicable.