Notes from Pilani
Mobile Medics
By Sandpaper Pilani Team
Last year, a small idea born in Pilani took the world by storm. Weathering all odds, the team known simply as "Mobile Medics" romped home to victory at B-plan competitions from New York to Bangkok, thus emerging among the top social ventures in the world. Headquartered at BITS Pilani, this healthcare startup has faced umpteen challenges and hardships to get to their current position. However, as with any activity, sustainable success is rare and most exciting startups fizzle out after the initial brouhaha. The motive force behind Mobile Medics, Kavikrut, MSc. (Tech.) Finance '02, took the BITS Pilani Sandpaper 2.0 Team through the developments in the past year, most notable being their association with Piramal Enterprises Limited, whose flagship company Nicholas Piramal India Limited (NPIL) is the country's second largest pharmaceutical healthcare company.
"We officially launched on 28th February 2007 and began operations on 8th March. So, it’s now 'Mobile Medics Healthcare, Pvt. Ltd.’ " quips an enthusiastic, but weary Kavi. Among the hurdles they faced, finding qualified doctors, clearing legal issues involved in the drug supply chain and gaining the trust of villagers were the prominent ones. Currently serving 12 villages in Rajasthan with a total population of 40000, Mobile Medics has treated 1500 people since their launch. The pricing model revolves around a consultation fee of 30 rupees for a first visit and 20 rupees for subsequent visits and the cost of medicines at MRP (Maximum Retail Price). Speaking about the healthcare scenario in India, Kavikrut says, "Rural healthcare is a massive and profitable market waiting to be tapped. However, it is also among the most difficult to break into. We want to be the pioneers."
Mobile Medics Team Member with Dr. L. K. Maheshwari
Until now, Mobile Medics has been operating on the prize money won at various competitions, most notably the Global Social Venture Competition (GSVC), New York (USD 25000). They recently won the Indian leg of BiD Network’s prestigious Business in Development (BiD) International Challenge B-plan competition and will pack their bags for Amsterdam later this year for the finals as India’s official entry, competing with teams from 7 other developing countries for prize money of over USD 100,000. This year, he managed to set up Mobile Medics as a PS-1 station. Mobile Medics is also an industry collaborator for the new ‘MPhil, Public Health’ program offered by BITS, Pilani starting this year.
Starting your own company right out of college is not only rare, it’s also supremely difficult. Support and mentoring is vital as is self-motivation and patience – Mobile Medics TeamWhile everything appears rosy on the surface, Kavikrut lets us in on the real issues plaguing the future of Mobile Medics. "The current business model is not profitable due to low patient volume and is therefore unsustainable. This prompted us to waive the consultation charges altogether and expand our customer base over the past two months. Of course, our profits are nil from consultation, but we are working around making higher margins from drugs and exploring secondary sources of revenue. Until now, we were operating solely on our prize money, but as the funds dried up, times became difficult. At one point, we were even advised to become an NGO so that we could tap into donations and government funding” he says.
The situation was grave when the Piramal deal came to their rescue. “Piramal Enterprises (PEL) was also working on a rural healthcare project on the lines of Mobile Medics. They had the resources, capital and network to implement such an idea and the infrastructure to scale the business rapidly.” The missing link was a person with on-field experience, something which Kavikrut had in abundance. An offer was made and he is now Manager of Business Development at PEL. He will spearhead their efforts to get the idea up and running.
Mobile Medics after its inception in Pilani
So, does that bring down the curtains for Mobile Medics? “Certainly not, we are discussing a possible synergy with PEL by absorbing Mobile Medics through a merger, and still work on the mission of building a business model to deliver primary healthcare to rural India. Although there was lot of criticism from many quarters when I accepted the position, I saw it as a clean way out of the cash crunch we were facing. In the end, the idea wins and that is important.” While he is tight-lipped when it comes to discussing the details of PEL’s healthcare initiative, we surmise it is very much on the lines of the Mobile Medics model, at least at the conceptual level.
Starting up your own company right out of college is not only rare, it’s also supremely difficult. Support and mentoring is vital as is self-motivation and patience. “BITS was the pillar of strength throughout the journey. Right from the incubation at TBI to small issues, the administration was very supportive. As a mentor, Anupendra Sharma was invaluable. His inputs and guidance helped Mobile Medics sail through many rough times,” says Kavikrut. While Mobile Medics may not get the same recognition now that they are on the brink of a merger with a corporate giant, they have certainly avoided being obliterated by forces that threaten the survival of many startups.
