This would be Lightspeed’s third major deal with its growth fund after investing in fast-trading company Zepto and education technology company PhysicsWallah. The deal with PhysicsWallah has not yet been formally announced. Qure.ai’s funding is likely to include a secondary sale of shares It is also being finalized and will close this month, people familiar with the matter told ET.
Qure.ai was nominated in the Best Innovator category in ET Startup Awards 2021.
“Lightspeed is investing between $20 million and $25 million and is also looking to buy some secondary equity. In total, the round could end up being $50 million to $60 million, depending on the final secondary component,” said a person familiar with the matter. “Existing investors will also provide primary capital.”In a secondary stock sale, the capital does not go into the company’s coffers, but rather changes hands between two investors.
Discover the stories that interest you
Qure.ai, which started operations in 2016, has made a significant shift in its approach to customers, with most of its revenue now coming from overseas, a person familiar with the matter said. Chest X-ray reports, tuberculosis treatment, lung nodule management and heart failure are some of the major areas where doctors are using its AI services to understand and finalize diagnosis and treatment for patients. It works with businesses and not directly with consumers.
Qure.ai CEO Prashant Warier and Lightspeed declined to comment on the deal.
Qure.ai, backed by Fractal Analytics, has raised about $60 million since inception and was last valued at about $233 million, according to Tracxn, which tracks startup funding data. It counts Peak XV Partners, Healthquad, Novo Holdings and MassMutual Ventures among its investors.
“The deal also marks increasing activity for Lightspeed, especially in the growth stages. It has been aggressively competing for many deals this year,” said another person familiar with the matter.
Lightspeed has backed startups like Razorpay, Udaan, Acko and Darwinbox. The fund invested in Sarvam AI in one of the largest seed-stage funding rounds in December last year.
Mumbai-based Qure.ai reported revenue of Rs 91.3 crore in fiscal 2023 along with a loss of close to Rs 78 crore, compared to Rs 39.3 crore and Rs 24 crore, respectively, in the previous fiscal.
Last month, Qure.ai claimed to have obtained its 12th patent in India from the Indian Patent Office for “a system and method for detecting lung abnormalities in a medical image.” Globally, it has 29 patents, the company said at the time.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.