W Health Ventures-backed Everhope Oncology bags $10 million to expand cancer care clinics

Everhope Oncology, a joint venture between Narayana Health and W Health Ventures, has secured $10 million in seed funding to establish medical and surgical cancer care facilities in Delhi and Mumbai. The hospitals are set to be operational by June, with plans to expand to 10 cities over the next three years.

Everhope is adopting a retail approach, and asset-light model rather than a traditional hospital setup.

“The advantage of building in a retail setting instead of constructing large 300-400 bed facilities is that we can scale up quickly, locate centers closer to patients, and experiment with different formats, such as 10, 15, or 20-bed centers,” said Pankaj Jethwani, Managing Partner at W Health Ventures.

“The capital expenditure for each center will vary based on geography and the competitive landscape of the market.”

These clinics will function as providing day-care services for medical oncology. Depending on the site, each clinic will have between 10 to 20 chairs for patient care.

Cost Benefit

Elaborating on the cost-benefit, Viren Shetty, Vice Chairman of Narayana Health explained, “Since doctors will be working in a flexible mode, their  utilisation rate will be high. Initially, there may be some inefficiencies, but as we scale multiple centers within a city, doctor utilisation will increase, bringing down variable costs.

Additionally, Shetty noted that Narayana Health will operate as the supply chain partner, ensuring that any discounts from the NH network are passed on to patients. “By addressing key cost factors, which include, doctor payouts, medicine procurement, and operational efficiencies.

He also highlighted Everhope’s integration with Narayana Health’s insurance, stating, “We are scaling our insurance coverage in cities like Bengaluru, Kolkata, and soon in Delhi and Mumbai. Our insurance offerings will include cancer treatment, making care more accessible.”