homehealthcare NewsIndia's largest healthcare services provider is looking to raise funds for its digital business
India's largest healthcare services provider is looking to raise funds for its digital business
The digital transformation of healthcare has become a crucial aspect of the industry, and companies like Apollo Hospitals are making significant investments to enhance their digital capabilities. With the support of non-strategic long-term investors, Apollo HealthCo is well-positioned to continue leading the way in digital healthcare in India and beyond.
Apollo Hospitals is firmly committed to driving innovation and growth in the digital healthcare space. By engaging non-strategic long-term investors, the company is well-placed to meet its investment requirements and drive further expansion in the digital health space.
In a recent interview with CNBC-TV18, Suneeta Reddy, the Managing Director of Apollo Hospitals, shared updates on the company's digital business. Reddy revealed that Apollo Hospitals is currently in discussions with non-strategic long-term investors to raise capital and support their digital business initiatives.
“For the long-term we are talking to investors, they are not strategic in nature. The environment, at this time, is not appropriate environment for capital raise but we are working on a capital raise,” she said.
This move highlights the healthcare giant's commitment to expanding its digital presence and providing customers with more convenient and accessible healthcare services.
Despite the ongoing efforts to raise capital, Reddy expressed confidence that Apollo HealthCo's financial losses would not worsen.
“We don’t anticipate it will get worse over the next few quarters. We have come to a position where we have reached peak losses,” she said.
This is a positive sign for the company, which has been investing heavily in its digital healthcare solutions to improve patient outcomes and experiences.
In fact, Apollo Hospitals has earmarked a requirement of around Rs 200 crore in H1FY24 to further develop and expand their digital business.
“It will be a requirement of Rs 200 crore for the first half of next year and this is something that the parent company can definitely fund. So for the short-term Apollo Hospitals’ balance sheet is extremely strong,” she mentioned.
This investment will enable them to continue to build and scale their digital platforms, acquire new technology, and hire top talent to support their growth objectives.
Despite the significant investment requirement, Reddy stated that Apollo Hospitals' short-term balance sheet is strong. This means that the company has the necessary financial resources to meet its immediate obligations while also investing in its digital healthcare initiatives.
The Covid-19 pandemic has significantly accelerated the adoption of digital healthcare solutions worldwide. With telemedicine, online consultations, and remote patient monitoring, patients can access healthcare services from the comfort of their homes, reducing the risk of exposure to the virus. Apollo Hospitals' digital initiatives are poised to benefit from this trend, and the company's efforts to raise capital and expand their digital business capabilities should position them well for the future.
With a strong short-term balance sheet and a commitment to innovation, Apollo Hospitals is poised to remain at the forefront of digital healthcare in India and beyond.
The stock was up 0.76 percent in the last one week and 2.41 percent in the past month.
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