How five ex-bankers broke free with radically different ventures and made them click
Rajan Mehta Earlier job: Founder, Benchmark Mutual Fund Quit in: July 2011 now runs: My Care Health Solutions
Two years after he sold exchange traded mutual fund Benchmark Mutual Fund, Rajan Mehta, 49, has turned his sights on the healthcare industry.
His start-up, My Care Health Solutions, incorporated in 2012, aims to provide cheap healthcare services using technology — cloud computing, digitised health records and, inevitably in India, mobile phones. "We are evolving a business model to embrace all these (tech) changes,'' says Mehta. My Care will provide preventive care which includes life style monitoring based on a monthly subscription plan. A mechanical engineer by training, Mehta is currently putting together the final pieces of his start-up's structure. He has already hired one doctor and aims to hire another 50 in next two years. In addition, he plans to have specialists on board. "We are working on a technology that can electronically keep healthcare records and health risk assessment software," says Mehta. On the basis of this, My Care will provide preventive, promotive and episodial primary care with a concierge facility. Mehta was inspired by Kaiser Permanente, a $47.9-billion non-profit American company, which offers incentives to keep clients healthy by following a subscription model similar to insurers where policy owners pay premium.
Bankrolling his venture shouldn't be a problem for Mehta — he earned around a million dollars from his stake sale in Benchmark. External investors too are interested in financing his start-up, he says. Dhirubhai Mehta, a former director at Bajaj AutoBSE -0.41 % and the Jagjivan family, which owns the brokerage Brics Securities, are ready to back Mehta.
"There is huge demand supply mismatch between demand for quality healthcare and supply of healthcare services and all kinds of models are tried to bridge the gap," says Hari Buggana, MD, Invascent, investment advisor for $100 India Life Science Fund. "My Care Health Solutions is trying to fit into a model for patients who do not require prolonged stay in hospitals and intervention of multi-specialty hospitals.''
While his earlier venture was perhaps a bit premature — he spent two years pushing regulators for approvals — he hopes his timing is better this time. He's betting on the rise of non-communicable diseases in the future like diabetes, cardiovascular diseases and cancer compared with diseases such as malaria, typhoid and tuberculosis. However, rather than a paralysis of analysis, Mehta, is counting on his gut this time too. "I learned that if you have conviction in a business model, it is possible to implement it.''