Zoho Corp invests $5 mn in Voxelgrids
The Chennai-based Zoho’s appetite to invest in deep tech R&D related product firms has received a boost with an infusion of Rs 35 crore for a 25 per cent stake in Voxelgrids (in two tranches over two years). The Bengaluru start-up manufactures 1.5 T MRI or magnetic resonance imaging scanners.
Making this announcement on Tuesday, Zoho Corp CEO and Co-Founder Sridhar Vembu said “At Zoho, through relentless R&D over the past 25 years, we understand the deep tech ecosystem needs to be similarly endorsed by patient, long-term investments. We hope that Voxelgrids success brings in more support for deep tech products made in India.”
Voxelgrids equipment also includes a proprietary software package for imaging purposes. Studies estimate close to 70 pc of the world’s population has no access to MRI scanners. In India, there are only 0.4 MRI scanners per thousand beds, with most of the access restricted to Tier-I cities. Moreover, in spite of India being a favourable medical tourism destination, procurement of diagnostic imaging equipment is still an expensive affair for hospitals and clinics, the brunt of which is borne by patients. The Indian market is dominated by either imported machines or refurbished equipment. Voxelgrids indigenous MRI technology provides a next generation, cost-effective alternative that enables healthcare facilities to save on capital and operational expenditure.
Arjun Arunachalam, CEO-founder, Voxelgrids, said the scanners are “lightweight, mobile and easy to install, operate and maintain even in remote locations.” Citing an example, he said the hub and spoke model with a centralised software fitment and backed by artificial intelligence, allows the portability of the scanner, which can be used even in Nagaland, even if the primary scanning is done out of Bengaluru.
It has developed multiple technologies related to MRI scanners, based on custom cryogenics and innovative electronic design and is looking to monetise it through OEM partnerships with other vendors in the field. Arunachalam said the high capex costs of MRIs typically above Rs 4.5 cr can be 50 to 60 per cent cheaper with the use of Voxelgrids offerings. “The 1.5 T market is to grow at 10 per cent with increase in paying capacity and affordability enabled by ‘Make in India’ programme,” he sought to point out in his presentation, highlighting the big opportunity in the value segment. The country’s installed base of MRIs is pegged at 4,800 (65 per cent in tier I cities).
Zoho, which has been investing in deep tech firms such as vTitan and SignalChip, has the vision of creating a full-scale medical systems company that would have the ‘Made in India’ foundation. “The potential of Indian market is huge,” he said, adding it would also look at exports. Software integration and innovation would be the area of focus, as it seeks to identify potential investments where the scope to collaborate and work with the same philosophy and access to different markets, is enabled.
So far, Zoho’s investments in high end R&D firms to support critical technologies ranges between Rs 200 crore and Rs 250 crore. “These are long-term gestation projects, involving high end R&D,” he said, noting that even the virtual meeting platform software, in its current functional form, is an outcome of over 10 years of software research (started with a 20-30 member engineering team and now has 60-70 members).