Medical tourism market in India to reach USD 9B next year

Medical travel company Healthtrip, which aggregates hospitals, cosmetic, and wellness clinics in India, Turkey, UAE, and Thailand, has turned profitable, according to the company’s top official.

The company’s founder, Danish Ahmed, stated that there has been significant post-Covid demand in the medical tourism space, leading to profits in recent months after a lean business period during the pandemic.

Through the platform, travelers can book flights and hospitals based on their medical needs.

Ahmed mentioned that Healthtrip suffered a significant impact from Covid in 2020 and 2021. From March 2020 to June 2021, the company worked with a skeleton staff. However, they have experienced substantial growth since then, with their Gross Transaction Value (GTV) increasing from $50,000 in June 2021 to about a million dollars in June 2023. Ahmed stated that the company has grown 20x in the last two years.

Healthtrip is currently recording an average gross profit of Rs 35-40 lakh every month, with a net profit of Rs 3-4 lakh after all expenses.

The company aims to increase the number of surgical patients from 250-280 per month to 400 per month by the end of the year. They also expect to achieve a Gross Merchandise Value (GMV) of $25 million or Rs 200 crore this year and grow 3.5 times next year.

In 2023, Healthtrip plans to target 4,000 patients on their platform for medical travel needs, with an increase to 10,000 patients by 2024.

According to Ahmed, the quality of treatment in India is becoming comparable to countries like Singapore, where costs are 50 times more expensive. India’s reducing treatment costs, along with increased access to information and disposable incomes in developing countries, such as Africa and Bangladesh, are factors contributing to the company’s growth and the growth of medical tourism in India.

The company currently receives 90 percent of its business from India and 10 percent from Thailand. They are attracting patients from Southeast Asia, Bangladesh, and have a strong hold in Middle Eastern and Central Asian countries like Uzbekistan, Myanmar, and Indonesia. Healthtrip aims to onboard 1,000 hospitals across India, UAE, Turkey, and Thailand in the next two years.

Healthtrip is in the process of raising another round of funds to develop new verticals. They have already raised $3.2 million from investors in India and Singapore and plan to invest heavily in AI and Ayurveda. Additionally, they are looking to add more hospitals and wellness centers in developing geographies like Jaipur and Gujarat.

Ahmed also highlighted dental as a vertical with strong potential that is yet to be explored due to its fragmented nature in India.

As a member of the government’s committee on medical tourism, Ahmed mentioned that there are many initiatives by the government to boost medical tourism in the country. The “Heal in India” initiative and Niti Aayog’s focus on medical tourism demonstrate the government’s recognition of its potential to generate foreign exchange and develop India’s soft power. More initiatives are expected to come from the government this year.

Currently, the medical tourism market in India is valued at $6 billion, projected to reach $9 billion next year and $13 billion by 2025. Out of this, $4 billion is spent on treatment, while $2 billion is spent on hotels and flights.

Healthtrip also anticipates completing a partnership with the hospitality chain OYO. Discussions are ongoing, and CEO Ritesh Agarwal has shown interest in the partnership. Moneycontrol