1. Portea Home Health Care
Heal At Home —
12th August 2016

2. Home Healthcare Industry Overview
Portea Home Health Care
Home Healthcare Industry Overview
Global home healthcare market grows at roughly 7.7% annually, to achieve an annual estimation of $306 billion by 2018.
The Indian market captures a very small part of this global market as it is currently estimated at $3.2 billion, with a growth expectation of close to 40% annually and expected to be at $6.2 billion by 2020.
People are realizing the benefits of home healthcare, such as:
Improved convenience
Lowered risk of infection
Savings in terms of cost, time and effort
It can be seen that the Indian home healthcare market is expected to show a sharp growth over the next 2-3 years and shall hopefully hit close to $8.1 billion by the end of 2018.
Source: Redseer Data

3. Portea General Overview
Portea Home Health Care
Portea General Overview
Portea provides doctors, nurses, and physiotherapists for home visits who have passed rigorous hiring standards.
Patient safety is guaranteed as the caregivers have had their backgrounds and medical knowledge verified by senior doctors.
The portfolio of service offerings also includes home lab tests and medical equipment rental.
Operational in 25 cities across India, the largest reach of any of the existing service providers.
Continuing to expand services to smaller cities by tying up with more hospitals in these areas.
Graph Credit : VCCEdge

4. Portea Team Meena Ganesh MD & CEO Ganesh Krishnan Chairman
Portea Home Health Care
Portea Team
Meena Ganesh
MD & CEO
Meena is one of India's foremost business leaders and most successful entrepreneurs with nearly three decades of experience in industries including healthcare, consulting, technology, outsourcing, education and e-commerce.
Ganesh Krishnan
Chairman
Ganesh is a successful serial entrepreneur with four successful green field ventures and exits. His last venture, TutorVista was acquired by US and UK listed education leader Pearson for $213 MM.
Vaibhav Tewari
COO
Vaibhav has over 18 year's diversified experience in building new businesses across Industries such as Business Process Outsourcing, Technology and Supply Chain Management.

5. Portea Service Offerings
Portea Home Health Care
Portea Service Offerings
Portea has over 50 hospitals as partners and a network of close to 200+ consulting physicians across different cities in India.
Range of services include physiotherapy sessions, 12 or 24 hour nursing help from well- qualified and ICU trained nurses, vaccinations, lab tests, trained attendants, elderly care as well as mother and baby care. This wide range of services allows Portea to have an advantage over its competitors through a larger customer base.
Portea tailors their rates depending on the condition and the needs of the patient, but the prices they provide are very affordable and priced in different brackets.
Consumers are also provided with aggregated care packages that last for a certain duration and provide neonatal care at home as well.
KIMS Hospital is an example of a partner, where Portea takes care of patient services at their homes in Secunderabad and Kondapur.

6. What Problem is Portea Solving?
Portea Home Health Care
What Problem is Portea Solving?
Indian geriatric population is expected to rise to 200 million by 2018, combined with the increasing lifestyle related health issues and increased chronic diseases, indicate the increased need for home healthcare to the consumers.
Despite the high growth rate, India’s market should be much larger considering the size of the geriatric population and the rising individual incomes.
The services that are currently being provided at home are not adequate enough to provide a complete healthcare experience for the patients, as they do not cover proper post operative care and focus more on treatment for chronic issues.
Technology is not a big part of this sector as it is currently more reliant on smaller individual caretakers, a scenario which is changing but not quick enough. Portea’s safety checks and warmth are convincing more people to adopt homecare professionals.

7. Portea Home Health Care
Why Portea?
First Mover Advantage: Portea was the first startup to specialize in the Indian home healthcare industry and has captured the market faster than any competitors, having spread to 25 cities in India.
Ambition is a large part of the team’s vision as they plan to spread to over 50 cities in India by the end of 2016, forging partnerships with local hospitals and recruiting well- trained caregivers.
Portea has so far raised closed to USD 46Mn in Private Equity Funding, with well-known organizations such as Accel India and IFC invested in the startup. The latest round of funding in Sep 2015 was a whopping USD 31.5Mn investment for a 24.25% stake in the company.
One of the earliest adopters of technology: Portea uses an in-house app for centralized patient records, hand held devices for field staff and GPS tracking for monitoring of logistics. Technology will be essential in the long term due to the lower margins in the home healthcare business.

8. Portea Key Financials Year FY 2013 FY 2014 FY 2015 Total Income 0.91
Portea Home Health Care
Portea Key Financials
A drastic income jump can be seen between the two years with the company on the path towards becoming profitable.
Year
FY 2013
FY 2014
FY 2015
Total Income
0.91
1.93
9.80
CAGR (%) --
112.09
228.18
EBIDTA
-1.38
-0.74
-0.11
PAT
-0.99
-0.55
-0.92
Current Ratio
0.71
0.84
0.55
EBIDTA Margin (%)
-38.34
-1.12
PAT Margin (%)
-28.50
-9.39
All figures in INR Million.
Source: VCCEdge

9. Portea Major Milestones
Portea Home Health Care
Portea Major Milestones
January 2016: Officially started operations in more than 25 cities across India, major expansion plans on track to expand to 50 cities by the end of 2016.
November 2015: Introduced Portea Cherish, which is a frequent membership program that helps Portea customers save money and gives them “health miles” which can be redeemed for services and win goodies.
September 2015: Raised approximately $31.5 million in funding from Private Equity firms Accel Partners, IFC and Ventureast for a 24.25% stake in the company.
December 2013: Raised Rs. 48 Crore in Series A funding from Accel Partners, the first Private Equity investment in the startup.
February 2014: Established HQ in Bengaluru and ramped up operations to 7 cities, carrying out 2500 home visits in one month.
July 2013: Acquired by entrepreneurs K Ganesh and Meena Ganesh from Zachary Jones, previous head of research at Copal Partners.

10. Home Healthcare Investment
Portea Home Health Care
Home Healthcare Investment
The infographic shows the increasing number and value of private equity deals in the home healthcare space. Private equity investors recognize the huge growth potential this area has in India and as a result, there are also a lot more startups operating in this sector.
Source: yourstory.com

11. Portea Home Health Care
Competition Profiles
Care24: Provides primarily nurses, attendants and physiotherapy exercises. One of the larger competitors that operates primarily in Mumbai and has a larger share of the market in the city than Portea.
India Home Health Care: Provides services in Bangalore and Chennai and is rapidly looking to expand to 3-4 large cities in India. They provide bookings primarily through their website and US firm BAYADA picked up a 26% minority stake in this company.
Medwell Ventures: They acquired Nightingales Home Health Services in 2015, which has over subscribers and a team of 150 people. Based out of Bangalore, the promoters are planning to invest $15-20 million in the next 3 to 5 years to expand aggressively.
Homital: Primarily provide old-age care and treatments for chronic diseases in Delhi NCR and treat only patients every day.
Hospitals: The large hospitals in India are now launching their own homecare wings, for e.g.: Apollo Homecare. The benefits they avail is the patients relying on the same people for post-procedure rehab and they have a large customer database already available to them.

12. Recent Home Healthcare Deals in India
Portea Home Health Care
Recent Home Healthcare Deals in India
Date
Company
PE/VC Firm
Investment (USD Mn)
Equity Stake (%)
Implied Equity Value (USD Mn)
Sept 2015
Portea Medical
Accel Partners Ventureast
IFC
Qualcomm Ventures
31.50
24.25
129.90
Nov 2015
Care24 Health
SAIF Partners
India Quotient Fund
4.50
26.67
16.87
May 2016
EUOR Health
Altius Ventures
Currae Healthcare Fund
1.50
---
>7.69
June 2015
Nightingales Home Health Services
Eight Roads Ventures
10.00
42.03
23.79
Hello Health
SIDBI VC
34.59
4.34
Sept 2013
India Home Health Care
BAYADA
0.38
25.09
1.51
May 2006
Metropolis Hospitals
ICICI Ventures
7.60
20.00
38.00
May 2015
Medwell Ventures
Fidelity Growth Partners India
Minority Stake
Undisclosed

13. Portea Home Health Care
Industry Challenges
Largely unorganized and dominated by small local agencies: Some people are set in their ways and are unwilling to adopt the idea of these organized companies.
Limited insurance coverage: Despite the big push from home healthcare service providers to the government, a lot of the homecare is still not covered under numerous health insurance schemes and this is a big barrier for people who cannot afford the service otherwise.
Low employee utilization rates and rising wage bills is another issue as the home visits are not numerous enough for the current workforce and they are not being allocated appropriately. Technology can be used to ensure efficient allocation of the helpers.
Low margins also lead to scaling becoming difficult.
There has not been a lot of M&A activity so far in home healthcare, as there are no big enough players to acquire and scale the company accordingly.

14. Dealing with Challenges
Portea Home Health Care
Dealing with Challenges
Portea is facing all of its challenges head on by embracing technology and making it a vital part of their daily operations, though their remote monitoring and real-life patient records coupled with a mobile application.
Hospital tie-ups are a key growth driver for Portea. It gives them the ability to gain a foothold in smaller cities, while still ensuring that they don’t need to establish a brand name to get people’s trust.
Portea’s technological setup and in-house work allocation system allows them to minimize the low employee utilization issue as their app schedules nurse visits methodically and are also exploring “on call” employees to reduce the operating costs.
Portea, charges a flexible rate for its services, which works out to its benefit as customers make a tailormade plan and are willing to pay the value that they work out. Hence, the margins do not affect Portea in the same way as other companies.

15. Portea Home Health Care
Portea Future Plans
With the increasing need for home healthcare, Portea has established itself as a leader in the Indian market with the highest footprint of any of the other home healthcare companies.
Portea, from its FY 2015 figure, had a total income 5 times that of FY14. With the increased service coverage and better product offering due to the reliance on technology, Portea is expected to hit million INR in the next year.
The main threat to the company seems to be from hospitals, who are starting up their own homecare wings, e.g. Apollo Homecare and have the spending power and brand name to spread to more regions and steal a part of Portea’s market share.
Portea has been and plans to use close to 25% of any future funding in improving their technology to make the resource allocation and customer experience better.
Large funding from Accel and similar firms display their confidence in Portea’s ability to provide high returns from its increased growth.

16. Portea Home Health Care
As seen from the graphic, Portea is the widest spread home healthcare entity in the country, with a continuously growing footprint.
Source: Redseer Consulting

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