Nemocare Raksha: Social HealthCare AI Startup Ideas

By creating cutting-edge, reasonably priced, easily accessible, and very precise monitoring technologies for emerging markets, NemoCare seeks to eradicate all avoidable newborn and maternal deaths in the developing world. To provide continuous, high-resolution monitoring and preventive care for every patient in the hospital and at home—ensuring that no effort is spared to prevent any form of mortality or morbidity—we employ unobtrusive wireless wearable sensors and networks, analytical algorithms, and big data as tools. We develop life-saving devices that will revolutionize the delivery of healthcare using the concepts of design thinking. The novel wearable Nemocare Raksha monitors infants' vital signs continually to enhance neonatal care. The detection of ailments including apnea, hypothermia, and other danger signs is the device's primary focus. It tracks vital signs including body temperature, heart rate, respiration rate, and blood oxygen saturation using inconspicuous wireless sensors. The gathered information is sent to a central platform, which enables medical professionals to keep an eye on several newborns at once and get notifications for prompt actions. This system may be used at home or in hospitals because it is easy to use and doesn't require any professional training. Because of its price and mobility, it may be used for both Kangaroo Mother Care and transportation. This Startup made the pitch in Shark Tank Season 3 which was covered in the 43rd episode.

Company Details

NemoCare Raksha has the Company name with NEMOCARE WELLNESS PRIVATE LIMITED Company incorporation date on 13th July 2017. This company is registered in Hyderabad, India.

Ownership of NemoCare Raksha Startup Ideas

Pratyusha Pareddy and Manoj Sanker are the co-founders of NemoCare Raksha, where the founders hold 95% equity with themselves only and 5% with the Centre of HealthCare Entrepreneurship for Incubation Fund.

Business Model of NemoCare Raksha Startup Ideas

Using an inventive marketing strategy, Nemocare Raksha mainly targets medical professionals in Tier I, II, and III Indian cities, such as doctors, surgeons, and private nursing facilities. By using a profit-sharing business-to-business (B2B) model, the firm enables healthcare institutions to implement its technology with little out-of-pocket expenditure and split the money earned by its use. Government-run Special Newborn Care Units (SNCUs) in district hospitals, where access to cutting-edge medical equipment is sometimes restricted by budgetary restrictions, stand to benefit greatly from this concept. Furthermore, Nemocare Raksha distributes its gadgets to government settings by utilizing Corporate Social Responsibility (CSR) activities, guaranteeing that even the most marginalized individuals may benefit from their life-saving equipment. Nemocare Raksha seeks to lower newborn death rates and enhance the quality of life for new mothers by emphasizing affordability and accessibility.

Products and Services of NemoCare Raksha Startup

A wearable for newborns, the flagship device "Nemocare Raksha" continually monitors the vital signs required to identify hypothermia, apnea, and other distress symptoms. An integrated diagnostic instrument that wirelessly links to a central platform so the nurse can keep an eye on every baby at once and sound the alarm if something is amiss. Key vital parameters are continually monitored, distress circumstances are identified and the caregiver is notified to intervene promptly. The data is safely stored so that the physician may access it at a later time. This gadget is especially good at identifying illnesses like hypothermia and apnea and notifying caretakers in real-time so they can take appropriate action. The gadget gathers data, which is electronically sent to a central platform so that medical professionals may keep an eye on several newborns at once. This system may be used at home or in hospitals because it is easy to use and doesn't require any professional training. Nemocare Raksha also provides a clinical decision support system driven by artificial intelligence (AI) that aids in evaluating the gathered data to forecast any health problems and recommend preventative actions. Their products are incredibly adaptable and accessible since they are economical, portable, and suitable for both transit and Kangaroo Mother Care. Detailed information about their services can be found at: www.nemocare.in.

Business Valuation of NemoCare Raksha Startup Ideas

NemoCare Raksha presented their pitch in Shark Tank India seeking an investment of ₹1 Cr for 2.5% equity at the business valuation of ₹40 Cr.

• Aman: He believed that he could help them a lot in getting their business model scaled and gave them an offer of ₹20 Lakhs for 1% equity at the business valuation of ₹20 Cr with ₹80 Lakhs Debt at 10% Interest for 2 years.
• Peeyush: He believed that the cause is great, and their model and products are scalable and hence gave founders an offer of ₹10 Lakhs for 1% equity and ₹90 Lakhs Debt at 0% interest for 1 Year initially, later he gave a collaborative offer with Shark Vineeta of ₹50 Lakhs for 5% equity and ₹50 Lakhs Debt at 8% interest for 1 year.
• Vineeta: She liked the pricing strategy of the founders which was made keeping in mind the Indian Consumer Market, and hence gave a collaborative offer with Shark Peeyush of ₹50 Lakhs for 5% equity and ₹50 Lakhs Debt at 8% interest for 1 year.
• Ritesh: He liked the business he sensed a divergence in the model, where they got the opportunity for impact, but for increasing valuation, the company is very early stage of seeing the current circumstances. Hence, he didn’t invest.
• Radhika: For her, the company was still in the pre-revenue stage, she suggested achieving commercial orientation before raising money from investors, declining growth rate in revenue from the last 3 years is also a demotivating factor for her. Hence, she didn’t invest.

As the founder was getting their aim aligned with Shark Aman and hence after certain negotiations, they cracked a deal with him of ₹20 Lakhs for 0.67% equity at the business valuation of ₹30 Cr with ₹80 Lakhs Debt at 10% Interest for 2 years.

Analysis of Shark's Decisions of NemoCare Raksha Startup Ideas

The device's ability to continually monitor a newborn's vital signs and provide real-time alarms for issues like apnea and hypothermia thrilled the Sharks, potentially saving lives. One of the Sharks, Radhika Gupta, related strongly to the proposal since she had firsthand experience with newborn care. She discussed how spending her early years in an incubator caused her to have health problems that have persisted throughout her life, highlighting the significance of easily available and efficient neonatal care solutions. The device's potential influence on several families was brought to light by this emotional link, especially in impoverished communities where access to sophisticated medical facilities is limited. The Sharks valued the device's integration of IoT and AI technology to offer a complete monitoring solution that is user-friendly and reasonably priced. They were particularly pleased by the ₹6 crores in grants that Nemocare had previously obtained, which showed the legitimacy and promise of the business. The Sharks gave a favorable response at the end of the pitch, recognizing Nemocare Raksha's huge social effect and business potential.

Some Key Strengths and Weaknesses of NemoCare Raksha Startup Ideas:

Strengths:

• Innovative Technology: The Sharks were astounded by Nemocare Raksha's cutting-edge technology, especially its capacity to continuously monitor several vital indicators, including body temperature, oxygen saturation, heart rate, and respiration rate. One major strength was the utilization of IoT and AI to provide complete newborn care.
• Social Impact: It was widely acknowledged that the gadget had the potential to save lives and enhance newborn care, particularly in underprivileged communities. Particularly Radhika Gupta had a strong personal connection to the purpose because of her experiences.
• Accessibility and Affordability: The Sharks recognized the device's accessibility to a wider range of users and its potential for usage in a variety of locations, such as homes and hospitals.
• Funding & Grants: Nemocare Raksha's prior experience obtained large awards, including ₹6 crores, proving the company's legitimacy and potential.

Weaknesses:

• Pre-Revenue Stage: The fact that the firm was still in the pre-revenue stage alarmed some of the sharks. Radhika Gupta said that although the goals were praiseworthy, there was a big danger associated with the lack of income.
• Regulatory Obstacles: Obtaining early US FDA clearance was considered a possible roadblock. Ritesh Agarwal stated that the company's valuation may be impacted by an overemphasis on effect in the absence of a clear route to revenue.
• Market Concentration: Peyush Bansal chastised the creators for focusing too much on the US market, where there is a vital need, and instead advising them to concentrate more on the Indian market. His emphasis was on the necessity of attending to the needs of infants in India before branching out globally.

Future of NemoCare Raksha Startup Ideas

Through partnerships with groups like UNICEF and QUALCOMM, Nemocare Raksha hopes to increase its presence in Latin America, Africa, and Southeast Asia in addition to India. The business intends to use a profit-sharing B2B model to sell its product in India, making it available to healthcare providers. Nemocare Raksha is dedicated to ongoing innovation and is creating life-saving technology for newborn care by applying design thinking concepts.

Conclusion

NemoCare Raksha's pitch highlighted key strengths in their business model and product. Further, the Sharks felt that investing in this would be pretty profitable and hence, founders got a great deal.

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