Elevar Salud, a Mexico City based Healthcare Technology company, integrates technology within the primary and preventative care sector of Latin America to reduce patient wait times & out of pocket costs. This presents an opportunity to compete for a majority share in a market of over 75mm middle class individuals, valued in excess of $7.4 billion USD.
While Latin America HealthTech remains steps behind developed markets such as the USA & Western Europe, the sector in these downstream economies has been a breeding ground for giants such as ZocDoc, ZnanyLekarz & Doctolib; providing convincing examples for what could become of a Latin American success story...
I recently joined their journey as an angel investor, and outline the reasons behind my investment decision below:
- Team
I met Vidit, Founder & CEO, about 18 months ago during a reference call for a former employee of mine. We went on to connect over coffee, where I learned about his plan to reshape the landscape of Mexican Healthcare, based on his profound experience as a Global Healthcare PE Investor @ Korn Ferry. I was impressed with his vision and went on to support the team as an advisor for some time, watching them build from the sideline.
Vidit's ability to craft a team of experts is second to none, and his leadership team today consists of top experts across Data Science (Ronaldo Benitez), Product (Rémy Couedic) & Health (Dr. Omar Luna).
- Market Opportunity:
Coupled with long wait times (doctor's appointments average 3 hours, and up to 4 weeks for specialists), patients are left feeling frustrated when dealing with their medical appointments; if they even find the resources to schedule them at all.
In 2019, Mexicans spent $28 Billion USD out of pocket on healthcare services. From that, over $7 billion USD was spent on specialist and GP consultations. The > $7 billion market opportunity in primary and preventative care underscores the immense potential for Elevar’s growth. The company's focus on addressing critical pain points in the Mexican healthcare system aligns with a market ripe for disruption.
Some facts I found interesting in my evaluation:
- 347.2mm medical appointments were booked in Mexico, in 2018 (excluding dental & ophthalmology)
- $720mm USD in revenue was captured by Mexican Digital Health providers in 2022
- 75% of Mexican doctors already offer telemedicine services
- 50% of Mexicans prefer utilizing private healthcare, as opposed to government provided services
- 60% of Mexicans can’t afford specialist or GP consultations, averaging $1,400 MXN and $350 MXN respectively
- Average wait time for a doctors appointment is 3 hours, and up to 4 weeks for a specialist
- Innovative Solution & Data-Driven Monetization:
Elevar Salud's innovative approach to healthcare, utilizing WhatsApp as a primary acquisition channel to provide users with basic medical advice, is a strategic move that resonates with the current technological landscape. Their product brings value to both sides of healthcare, enabling both doctors and patients access to scheduling virtual & in-person appointments; aligning with industry trends where digital solutions are becoming integral to healthcare access.
Elevar Salud's freemium consultation service not only integrates patient health data seamlessly but also serves as a springboard for monetization. The company efficiently converts patient demand into revenue through services like teleconsultations with physicians, specialists, and upcoming offerings such as lab tests and prescription fulfillment, leveraging a network of trusted partners. They currently promote a 40% conversion rate from free users into paid services, with a 30% rate of users returning.
Below is a description of their current monetization levers:
B2C
- $100 MXN flat fee for a digital, comprehensive medical consultation with a private doctor
- $650 MXN per order of diagnostic laboratory tests, of which strategic partners fulfill
B2B
- $300 MXN for Electronic Medical Record issuance
- Addressing Pain Points:
Elevar Salud directly tackles key issues in the Mexican healthcare system, such as fragmented services and long wait times. The comprehensive healthcare solution offered through WhatsApp, providing instant access to consultations, prescriptions, lab services, and medicine delivery, positions Elevar Salud as a transformative force in making healthcare more accessible and affordable.
Elevar’s technology-first solution is 40% cheaper than national average, easing a burden of high spending in a population of which 42% of healthcare expenditures are typically made out of pocket. It is worth noting that Elevar’s digitization of each transaction provides enhanced management of healthcare record keeping, as they are able to centralize the entirety of patient data as an EMR provider.
Through their system, administrative burden for providers is in turn reduced, enabling doctors to be more efficient (increasing earnings through more consultations), while ensuring that healthcare providers have the ability to focus on providing the best patient care possible instead of wasting time in manual processes.
Their growth as a pre-seed company over the last year hint at early signs of virality. Elevar achieved consistent 15% MoM Growth, ending the year with over 11,000 active users and strategic partnerships signed with Chopo Medical Labs, Walmart, Soriana & top nationwide pharmacies such as Benavides, Ahorro & Farmatodo.
- Timing:
Elevar Salud's integration of technology sets new industry standards for accessibility, efficiency, and patient care. By leveraging WhatsApp coupled with seamless privatized medical solutions, the company creates an attractive healthcare experience, addressing the evolving needs of digitally engaged consumers.
The company has emerged in a time ripe for disruption, as the market today features highly limited competition namely from the likes of Doctoralia and privatized medical institutions focused on servicing the upper-class of Mexico. Elevar has stayed a step ahead of the competition by offering free 24/7 medical advice, a digital patient portal, ultra-competitive flat pricing & medication delivery on demand.
In summary, Elevar provides compelling reasons to invest, namely given strong early traction, massive pricing disruption, a clear go to market strategy, scalable, owned distribution channels & successful execution of the team to date. They are raising a seed round in which I am thrilled to participate, and aim to execute on their roadmap to Series A in time for 2025.
Please get in touch with me via hey@joemerullo.com with questions or feedback.