SAMRIDH -Catalyzing Market-based Health Solutions in Emerging Markets through Blended Finance

Creating Agility through Blended Finance

India has a robust health technology and innovation ecosystem with over 7,400 registered startups in the health domain. However, they often face challenges, including lack of capital, market access, regulatory roadblocks and market inefficiencies. These hurdles limit the ability of impact-led businesses to scale-up their solutions and improve healthcare for historically underserved communities and regions.

Over the course of two years, SAMRIDH has secured a commitment of USD $300 million in grant and debt capital from philanthropy and financial institutions allowing for a rapid scaling of social and market-based health enterprises. As a blended finance facility, it offers a diverse range of financial instruments, including partial risk guarantees and interest subvention, enabling businesses to address their financial challenges.

Mr. Himanshu Sikka, Project Director at SAMRIDH and Chief Strategy Officer at IPE Global, reflected on SAMRIDH's strength in helping impact-led business. "SAMRIDH recognizes that not all enterprises have uniform needs, and therefore require customized financial solutions. Our agile structure enables us to navigate evolving regulatory landscapes and implement a result-oriented approach."

Karma Primary Healthcare

Karma Primary Healthcare, a healthcare enterprise, leverages technology to address the primary health needs of vulnerable populations in semi-urban and rural areas. Karma delivers a sustainable rural healthcare model that broadens the scope of primary healthcare services and reduces out-of-pocket health expenses. Through e-Doctor Clinics, supported by qualified medical professionals, Karma provides access to specialty care that is typically difficult to access in rural areas, helping to bridge the digital gap in primary healthcare.

Enterprises like Karma Primary Healthcare have low profit margins and rely on achieving economies of scale to make its services sustainable. They face many challenges, including raising funds and building a workforce. This is where innovative financing plays an important role, enabling impact-led businesses to access affordable capital.

In 2021, SAMRIDH provided Karma Primary Health with US$ 111,000 in result-based financing support. This enabled Karma to expand the continuum of care to low-income neighborhoods in Rajasthan, Madhya Pradesh, and Haryana. Karma was able to establish three additional primary healthcare clinics, resulting in a 45% increase in the number of covered districts and a remarkable 61% surge in patient visits.

Through strong partnerships and a wide network of stakeholders, SAMRIDH also provides healthcare enterprises with comprehensive support, from business advisory services to technical assistance, enabling them to create financially viable solutions that foster sustainable impact.

With USAID's support, Karma Primary Healthcare attracted other investment capital from international investors, donors, philanthropies, and multilateral agencies, to expand its services and improve business performance. Karma has demonstrated impressive results, with a revenue growth of 158% and a valuation increase of approximately 150%. Karma has now reached over 46,000 individuals through tele consultation and conducted over 33,000 e-clinic consultations. It has also expanded its operations into new geographic regions, including Rajasthan, Madhya Pradesh, and Haryana, reaching over 172,000 people annually in the catchment areas of its 25 clinics. Moreover, after receiving support from SAMRIDH, the clinics have experienced an annual increase in foot traffic by 61%.

Reflecting on USAID's partnership with SAMRIDH, Ms. Veena Reddy, Mission Director at USAID India, reiterated the importance of collaboration in making an impact. "By increasing researchers' and incubators' access to markets and funding streams, SAMRIDH helped to scale their life-saving initiatives. SAMRIDH is a story of collaboration and innovation in the face of adversity, and the solutions developed here in India have the potential to serve as best practices across the world."

SAMRIDH serves as a catalyst for the growth of impact-driven and locally-led businesses such as Karma Primary Healthcare. Its portfolio includes over 60+ healthcare solutions for health infrastructure, diagnostic services, medical devices, oxygen supply, vaccine distribution and supply chain management, as well as healthcare training and capacity building. SAMRIDH's unique multi-faceted approach enables healthcare enterprises to transition towards dynamic expansion, ultimately strengthening healthcare systems in India.