Docmode Health Technologies
- Docmode Health Technologies is coming out with an initial public offering (IPO) of 8,49,600 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 79 per equity share.
- The issue will open on January 25, 2024 and will close on January 30, 2024.
- The shares will be listed on NSE Emerge platform.
- The share is priced at 7.90 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Fedex Securities.
- Compliance Officer for the issue is Reshma Susan.
Profile of the company
Docmode Health Technologies is engaged in the business of offering integrated learning solutions through online and offline learning model to health care professionals and learners across the world, spanning the education value chain. The company’s offline learning model comprises of conferences and workshops. The company’s online courses content is reviewed and presented by its dedicated in-house content development team or by medical institution and medical associations (medical professional bodies) and subject matter experts/key opinion leaders who are focused to effectively transfer knowledge, as well as communicate and network with each other through its learning and professional networking platform.
The company mainly focus on providing learning solutions through online model. Its tech based online learning model allows health care professionals and learners to engage in self-paced inclusive and individualized learning experience without the requirements of physical classroom present. The company’s online learning model comprises notes, recorded videos, live conferences, workshops etc. In addition to the learning solutions, the company provides a platform for inter-professional cross industrial learning via panel discussion and courses as well as take advantage of its performance assessment tools to better their clinical acumen in their daily medical practice. The company is registered ISO 27001:2013 for Information Security Management System and have also received a ready status from Skill India.
The company’s promoters have a collectively 22 years of experience in healthcare advertising, health IT, healthcare communications, healthcare event management and broadcasting. The company’s promoters have developed “iNutrimon” application for clinical nutrition delivery management for ICU patients, entire IPD as well as OPD patient requirements of a hospital or healthcare service provider. Its Promoters founded the company with the vision of “Transforming Learning & Practice” in the medical fraternity. Its Promoters oversee the business development and is actively involved in the critical aspects of its business i.e., business strategic planning, product marketing, team management, channel expertise and competitive analysis. Its Promoters’ relationships with the institutions, associations and other industry participants have been instrumental in implementing its growth strategies. The company is also led by qualified and experienced professionals who have demonstrated their ability to manage and grow its operations, adapt and diversify its offerings and leverage market opportunities.
Proceed is being used for:
- Purchase of IT infrastructure and operating system.
- Meeting incremental working capital requirements.
- General corporate purposes.
Industry Overview
Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. India’s healthcare delivery system is categorised into two major components - public and private. The government, i.e. public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary, and quaternary care institutions with major concentration in metros, tier-I and tier-II cities.
Meanwhile, the education sector in India was estimated to be worth $117 billion in FY20 and is expected to reach $225 billion by FY25. India has over 250 million school-going students, more than any other country. India had 38.5 million students enrolled in higher education in 2019-20, with 19.6 million male and 18.9 million female students. According to UNESCO’s ‘State of the Education Report for India 2021’, the Pupil Teacher Ratio (PTR) at senior secondary schools was 47:1, as against 26:1 of the overall school system. Number of colleges in India reached 42,343 in FY20. As of August 23, 2022, the number of universities in India stood at 1,057. In 2022-23, there are 8,902 total AICTE approved institutes in India. Out of these 8,902 institutes, there are 3,577 undergraduates, 4,786 postgraduate and 3,957 diploma institutes. The Indian edtech market size is expected to reach $30 billion by 2031, from $700-800 million in 2021. According to KPMG, India has also become the second largest market for E-learning after the US. The online education market in India is expected to grow by $2.28 billion during 2021-2025, growing at a CAGR of almost 20%. The market grew by 19.02% in India in 2021.
India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep. India’s healthcare sector is very diversified and is full of opportunities in every segment, which includes providers, payers, and medical technology. With the increase in the competition, businesses are looking to explore the latest dynamics and trends which will have a positive impact on their business. Moreover, various government initiatives are being adopted to boost the growth of the distance education market, besides focusing on new education techniques such as E-learning and M-learning.
Pros and strengths
Strong network effects resulting in growth business verticals: The company has network of doctors in varied specialists such as general practitioners to consultants and to super specialists. Its ecosystem connects healthcare professionals, patients, medical learners and others resulting a strong network enabling growth in its business.
Diversified and integrated education products, services and content offerings: The company provides a wide range of learning solutions through its online courses including CME courses, live lecture series, latest guidelines & research in every therapy and workshops in association with medical institution, medical associations (medical professional bodies) and subject matter experts/key opinion leaders and therefore its services and therefore its services give it a competitive edge over other players who are more particular course-specific.
Continue offering new course/lecture content: The company continuously adding courses based on the trends. Over the years, it has 87 certificate programs courses where it has associated with about 35+ Medical Associations including university across the globe, which are updating, upskilling and reskilling courses to learners and healthcare professionals.
Risks and concerns
Dependent on its relationships with healthcare professionals: The company’s sales and content and operations depend on the efforts, ability and experience of its in-house team to regularly engage the healthcare professionals, which Doctors, physicians, surgeon and allied healthcare professionals such as dieticians, physiotherapist, nurses, technicians and paramedics who have registered on its platform and its targeted healthcare professionals. The company’s performance and the execution of its business strategies depend substantially on its ability to attract and engage healthcare professionals from various specialties. Failure to attract sufficient qualified healthcare professionals for its learning solutions could adversely affect its business, financial condition, results of operations, cash flows and prospects
Dependent upon affiliated medical institutions for business: The company is dependent on affiliated medical institutions for its certification courses. It does not have long term arrangements with all its affiliated medical institutions to avail its services in the future, at the current prices or at all. The loss of a major medical institutions and/or reduction in any of its professionals and key medical institutions, resulting in lower demand for its services and any material delay, cancellation or reduction of orders from any of its key clients would materially affect its business and financial condition. There is no assurance that it will be able to maintain historic levels of business from all the existing clients or to retain all the existing clients, or that it will be able to replace its client base in a timely manner or at all. In the event its existing clients do not continue to avail its services, it may affect its revenues and the financial condition of the company.
The company operates in specifically regulated business: The company operates in continuing medical education space which are subject to guidelines prescribed by NMC (National Medical Commission) which was previously known as medical counsel of India such as no product specific training or indirect form of advertisement for prescribing of medicines, guidelines on sponsorship to be unbiased towards particular drugs or molecules. The central or state governments may, however, change the existing laws or introduce new laws to regulate the medical education sector or molecules. The impact of such regulations on the business cannot be currently ascertained. Such regulations may curtail or impose additional and onerous obligations on its operations and may adversely impact its business. These factors may result in an increase in operational costs to comply with such legislation and failure to comply may cause adverse impact to its business.
Outlook
Docmode Health Technologies Limited was founded in 2017 and provides integrated learning solutions for healthcare professionals and learners worldwide through online and offline learning models. The company's offline learning modules include conferences and workshops, while the online modules include courses developed by the company's content development team or by medical institutions and medical associations (medical professional organizations) and experts/opinion leaders. The company also provides a platform for inter-professional, cross-sector learning through panel discussions and courses, and users can utilize its performance assessment tools to improve their clinical acumen in daily medical practice. On the concern side, the company is dependent on its relationships with healthcare professionals, and its business and financial results could be to an extent impacted if it is not able to engage such healthcare professionals on a regular basis. Moreover, the company’s ability to retain the present number of learners and professionals serviced by it and attract new learners and professionals is dependent upon various factors including its reputation and its ability to maintain a high level of service quality. Any failure by it to retain or attract learners and professionals may impact its business and its revenues.
The company is coming out with an IPO of 8,49,600 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 79 per equity share to mobilize Rs 6.71 crore. On performance front, The company’s total revenue increase by 165.12% to Rs 3,297.42 lakh for Fiscal 2023 from Rs 1,243.76 lakh for Fiscal 2022. Moreover, the company’s profit after tax increased by 111.30% to Rs 194.82 lakh for Fiscal 2023 from Rs 92.20 lakh cfor Fiscal 2022. Meanwhile, the company’s core strengths are the content and multiple delivery platforms, which it has built, created, developed and which will be the key drivers for its business in the future. All its study material, which are used by it is reviewed by experienced in-house content development team. In the past, it has entered arrangements with third parties for content creation and development for various courses offered by it. The company will continuously endeavor to develop, update and acquire the content to cater to the demand of the courses offered by it.
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