Medical diagnostics platform 5C Network has secured Rs 25.5 crore (approximately $3 million) in funding from Redwood India Healthcare Fund in a recent round, marking its first investment of the year.
The board of 5C Network has approved a special resolution to issue 2,72,241 Compulsory Convertible Preference Shares (CCSPS) at an issue price of Rs 936.67 each, raising Rs 25.5 crore, according to regulatory filings accessed from the Registrar of Companies.
Established in 2016 by Sivasailam and Syed Ahmed, the Bengaluru-based company focuses on storing, creating, and analyzing radiology images for users across India. It also aids hospitals in optimizing their radiology infrastructure by granting access to radiologists.
Prior to this funding round, 5C Network’s last capital infusion was $4.6 million in its Series A round led by Celesta Capital in October 2022. Based on estimations by startup data intelligence platform TheKredible, the company’s valuation stands at approximately $30 million post-investment.
The company has garnered support from Tata 1mg and Celesta Capital, accumulating over Rs 80 crore in funding. Before this recent round, Unitus Capital held the largest external stake at 20.8%, followed by Celesta Capital and Tata 1mg. Co-founders Kalyanasundaram S and Syed Sabbir Ahmed collectively owned 33.9% of the company.
Despite these investments, 5C Network has faced growth challenges, evident from a 20% decline in collections to Rs 18.75 crore during the fiscal year ending March 2023. Additionally, the company reported a loss of Rs 19.47 crore during the same period.
