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Redcliffe Labs

Improving quality and convenience of diagnostics for Indian consumers

Industry:

Diagnostics

Region:

India

3,700,000 0 +

Customers served

27,000,000 0 +

Tests undertaken

1,700 0 +

Collection centres nationwide

Redcliffe Labs is an affordable and convenient omni-channel diagnostics service operating across 200+ cities in India. The company facilitates at-home diagnostics for more than 3600 medical tests through their network of 1,700+ collection centres, supported by 70+ state-of-the-art labs and overseen by experienced pathologists.

India is experiencing a spike in noncommunicable diseases (NCDs), driven by increases in heart disease, cancers, diabetes and chronic respiratory disease.

NCDs contribute to 65% of total deaths in the country, with estimates that this figure could rise to 73% in the next decade.1 Left unaddressed, it is estimated NCDs will cost India approximately US$ 3.55 trillion in economic losses by 2030.2 NCDs account for 40% of all hospital stays and approximately 37% of all recorded outpatient visits in the country.3 The money to fund out-of-pocket expenses for treatment often comes from household savings and money borrowed from relatives4. Household spending on healthcare frequently diverts resources away other critical areas like education or day-to-day essentials.5

Historically, access to diagnostics has been difficult in India given the low penetration of accredited medical laboratories. India currently has around 1200 accredited laboratories, serving a population of 1.4 billion, compared to the US, which has 260,000 accredited medical laboratories and a quarter of India’s population.6

Traditional pathology models require a patient to spend substantial time and money travelling to the laboratory to both deposit samples and pick up results, often resulting in loss of income and additional expenses for transport.7

On a macro level, tackling NCDs now is a critical priority to help India’s healthcare system avoid being overwhelmed by a wave of new patients suffering chronic diseases. Already, the market for key chronic specialties has increased by five times over the last 10 years. Healthcare infrastructure remains incomplete, and lacking, with only 12 beds per 10,000 people (versus 29 globally) and only 9 doctors and 17 nurses per 10,000 people (versus a global average of 16 and 38 respectively).

1 Health of the Nation report, Apollo Health Care 2021 | 2 Economics of non-communicable diseases in India, WEF 2014|3 The economic implications of NCD for India, World Bank 2010 | 4 Ibid | 5 Economics of non-communicable diseases in India, WEF 2014 | 6 Lancet diagnostics commission |7 An assessment of India’s laboratory diagnostic industry, Nathealth 2019 |

Top 10 causes of death in India, 2009 - 2019 Top 10 causes of death in India, 2009 - 2019
Source: Global burden of disease study, The Lancet 2020
Top 10 causes of death in India, 2009 - 2019 Top 10 causes of death in India, 2009 - 2019
Source: Global burden of disease study, The Lancet 2020

Redcliffe is an omni-channel diagnostics platform combining digital and offline offerings to provide Indian consumers with quality testing at their doorstep.

Redcliffe offers more than 3,600 pathology tests with pricing 25-60% less than similar tests sold by incumbent operators. Its network of 1,700+ collection centres is supported by 70+ specialist labs across 200+ cities and enables timely and accurate results to be sent to consumers within 24 to 48 hours of testing.

The company has built its pathology labs to international specifications, providing a reliable option for consumers in a highly fragmented market. It is estimated there are nearly 100,000 clinical labs operating in India, with the vast majority lacking sufficient accreditation and compliance.8 Redcliffe’s labs are accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL), or are in the process of obtaining such accreditation, and its staff all undertake comprehensive training.

Redcliffe’s diagnostics tests are to be as much as eight times more cost effective than national coverage for protecting against the consequences of cardiovascular disease, while its tests for diabetes are less than two thirds the cost of the cheapest comparable screening and telemedicine interventions.9

Package testing has also been an appealing offering, providing consumers with a broad view of their wellness through tests such as thyroid health, Vitamin D and blood sugar levels. The increased access to information encourages consumers to play a more active role in the management of their health, empowering them with quality information in a convenient and accessible service.

To date, Redcliffe has grown within and outside metropolitan centres, with the latter being the key engine for growth. The group target cities with a population of 750,000 and above in a bid to build a closely knit regional and satellite lab network. Roughly 65% of total customers are classified as low-income consumers living in households earning less than US$11.20 per day.

8 Quality medical diagnostics: Making it affordable and accessible (indiatimes.com)| 9 LeapFrog Investments, Deepening Impact with DALYs, 2023

Redcliffe cost per DALY* ($) compared to other Indian interventions
Source: LeapFrog Investments, Deepening Impact with DALYs, 2023
Redcliffe cost per DALY* ($) compared to other Indian interventions
Source: LeapFrog Investments, Deepening Impact with DALYs, 2023

LeapFrog is committed to supporting Redcliffe Labs as it expands access to diagnostics for emerging consumers across India.

Geographic expansion, both organic and inorganic, has been a key focus for the firm as it pushes into Tier II and Tier III cities and widens its network of laboratories. Since investment, the LeapFrog team has worked with the company to execute and integrate two strategic acquisitions, generating significant additional revenue.

LeapFrog continues to support Redcliffe in elevating its product and consumer experience through initiatives including workshops led by LeapFrog’s CX experts and leveraging social listening analytics to understand customer pain points. Based on user feedback, the team revamped Redcliffe’s web user experience and introduced a new online app, enhancing customer retention. Feedback from these sessions also improved inhouse call centre conversions, facilitated by software upgrades accommodating diverse local languages. As a result, Redcliffe increased organic growth among repeat users from 9% to 45% in just over a year, with customer acquisition costs reduced from $12.50 at the time of investment to $3 in September 2023.

Furthermore, the LeapFrog team played a key role in implementing a new customer acquisition channel through WhatsApp, anticipated to be a key differentiator. This not only facilitates long-term customer retention but also enhances reach, operational efficiency, grievance redressal, and cross-selling opportunities.

Redcliffe has established itself as an industry leader in low-cost, mobile diagnostics, improving both quality and access for Indian consumers. LeapFrog believes its model can deliver significant impact across the Indian healthcare sector in years to come.

Cover image: Photo by Sushmita Nag on Unsplash. Page last updated September 2024.

Diagnostics are essential for universal health coverage Diagnostics are essential for universal health coverage
Source: Transforming access to diagnostics, The Lancet 2021
Diagnostics are essential for universal health coverage Diagnostics are essential for universal health coverage
Source: Transforming access to diagnostics, The Lancet 2021