KASIKORNBANK (KBank) has assigned KASIKORN VISION Co., Ltd. (KVision) to jointly invest in Jio Health – a startup which provides one of the largest omnichannel healthcare services in Vietnam. Aiming to broaden its presence in payment services across all formats and penetrate SME and retail loan markets within the healthcare industry ecosystem, the Bank expects to achieve exponential growth in returns over a short period of time.
Pattarapong Kanhasuwan, KBank Executive Vice President and KVision Chairman, said that, according to the World Bank, Vietnam recorded GDP growth of around 6-7 percent prior to COVID-19. With its population of more than 97 million, Vietnam has the fastest-growing middle class in Southeast Asia and a rising internet penetration rate. All of these factors present a huge opportunity in the digital healthcare industry. The Vietnamese healthcare industry has posted a compound annual growth rate (CAGR) of 10.4 percent during the last decade.
However, there are several pain points in the national healthcare system, including a lack of medical talent, overcrowding and time lost while waiting in state hospitals. This has prompted innovators to disrupt the healthcare market, as evidenced by a proliferation of healthtech platforms in Vietnam to accommodate the digital demands of people seeking easier and faster access to healthcare service at more affordable prices compared to those of private hospitals.
Recently, KVision jointly invested in Jio Health, one of the leading omnichannel healthcare solution providers in Vietnam. Aside from its business capacity in terms of comprehensive online and offline business operating channels, Jio Health is a player with high potential as evidenced by the substantial growth seen in its service users every month along with a broad range of health check-up and healthcare services that can be easily accessed by working-age and middle-class Vietnamese. Jio Health’s management team has experience in the healthcare and pharmaceutical sector, plus business and technology expertise in running a startup business abroad.
The current investment will offer KBank an opportunity to work with Jio Health in the development of health care services in Vietnam while also offering local consumers easier access to such services via an advanced digital platform, including all types of transactions via payment points, and loan services for those in the healthcare sector. Jio Health aims to offer loan services to the working-age population, particularly middle-income earners who have sound financial records, and small business operators, such as pharmacies, in need of funding sources for running a business. KVision has made this investment via Beacon Venture Capital, the corporate venture capital arm of KBank.
Raghu Rai, Founder and Chief Executive Officer, Jio Health Company, added that Jio Health has operated its business for four years, with a steadily growing user base and service network. The company, as a key Vietnam-based healthtech startup, provides a full range of medical services through online channel i.e. telemedicine, electronic prescriptions available for convenient use via mobile application; offline matrix of its ecosystem, i.e., Smart Clinics, Jio-branded neighborhood pharmacies, on-demand home care; as well as other specialized health services.
This Series B fundraising round was joined by venture capital firms including Heritas Capital, a Singapore-based private equity firm; Monk’s Hill Ventures, a venture capital firm in Southeast Asia; Fuchsia Venture Capital, a venture capital arm of Muang Thai Life Assurance Public Company Limited; and Kasikorn Vision. Following this new funding, Jio Health aims to continually reinforce its status as the number-one player in the healthtech industry in Vietnam.