How Medikabazaar's new CEO is trying to turn around the business, target profitability this year
Medikabazaar, the medical equipment supplier, expects to put the controversies surrounding the startup behind it as it targets profitability this year, CEO Dinesh Lodha told Mint in an exclusive interview. The startup, which is entangled in legal disputes, has started exports and is expanding its portfolio offerings to drive growth.
Lodha, who was appointed group CEO in August 2024, said the business is turning around and that will help rebuild confidence among its investors and customers.
'This is the third quarter going on, [since] I joined, and in the last two quarters there are significant changes happening in the business. We have cut down our loss by 80% by quarter four from quarter one," he told Mint. 'In Q4 we ended up at a revenue run rate of ₹2,200 crore, with some losses. Next year, we're looking at a run rate of ₹3,200 crore by Q4FY26, with Ebitda profitability. For the first time the company will show a solid profitability and a good cash flow."
Lodha said his mandate is to run the business and that the dispute between investors is not a distraction.
'The team is very focused. And my approach is also very focused," said Lodha. 'The way things are getting turned around, I think people are getting more and more confident. We are not losing customers because of this."
The Mumbai-based B2B medical supply chain platform has been mired in controversy and legal disputes following a whistleblower complaint in December 2023 accusing the then-senior management of round-tripping of accounts to inflate revenue and other irregularities. The allegations have been validated by forensic audits. The company's auditor resigned, its FY23 financials were restated, and its leadership was overhauled.
Founder's ouster
Co-founder Vivek Tiwari stepped down as chief executive officer in July 2024 to take on a board role. He was then ousted by the company's board in April 2025 over allegations of malicious and fraudulent activities, including financial mismanagement and financial fraud.
Tiwari is fighting cases in multiple jurisdictions, including the Delhi High Court and the National Company Law Tribunal. In an earlier interview to Mint, he denied allegations of financial misreporting.
Also Read | Medikabazaar's ousted CEO denies board's allegations of financial irregularities
Additionally, the company's Series C investors including Creagis, CDC Group, HealthQuad and Ackermans & van Haaren, filed an indemnity claim, or compensation, of ₹279 crore against the company over allegations of financial misreporting.
Lodha comes with over two decades of experience in the healthcare and medtech space, having previously worked as group CEO at Healthium Medtech, country head for Samsung's healthcare vertical, and sales director at GE Healthcare. He has 'a proven track record of leading successful turnarounds of businesses," according to his LinkedIn profile.
Medikabazaar reported a gross operating revenue of ₹1,355.5 crore in FY24, a 50% surge from the preceding year, according to Entrackr. Its loss widened by 30% to ₹394.8 crore.
The company's expansion is driven by adding new growth segments and an internal clean-up with a focus on transparency.
'If you ask me one word in this organisation which I've tried to change, it is to 'empower' the people to take decisions, but then be accountable," he said.
The company has had a good retention of its leadership, employees and customers over the past 18 months, Lodha said.
'That itself gives you confidence that things are pretty much solid in place," Lodha said. 'We have added many new segments, new leaders. But we retain the core," he added.
Exports to drive growth
Lodha is driving the company's expansion beyond Indian shores. The company is already facilitating Indian manufacturers with certification to export to countries in the Middle East, Africa, some parts of Asia, and South America.
'It is in the early stages… but it is a huge, significant growth area for us as we go forward. At this point of time, export [segment] is not that significant. We are talking 5-6% of our business. But that will significantly grow to 15-20% as we go forward," Lodha said.
Also Read | The fallout of an audit and missed targets: Medikabazaar founders set to lose stock options
Medikabazaar is a B2B seller for medical equipment and drugs, including consumables such as surgical gloves, devices like MRI machines, and vaccines. It has over 400,000 customers through its digital marketplace and has tied up with over 1,000 hospitals in the country.
The company has also started its own brand called MB+ for medical consumables, pharmaceuticals, and vaccines that it will directly offer to customers, which is a high-margin business and will form a significant chunk of the company's revenue, said Lodha.
It is targeting tier-2 and tier-3 hospitals and aims to offer complete supply chain and procurement solutions to at least 100-150 hospitals in the next 12-14 months.
'In India, nobody has the portfolio breadth that we have with presence in equipment and devices, consumables, disposables, IVD (in vitro diagnostics) and pharma," said Lodha. 'We offer a one-stop solution in all procurement segments… that's a very big opportunity for hospitals to really work with one company as a single-window procurement partner rather than working with, say, 200 distributors."
Medikabazaar competes with large manufacturers in individual segments such as medical equipment companies Wipro GE Healthcare and Medtronic, as well as other B2B marketplaces MedDeal and Zoplar.
Also Read | Indian medtech's just coming of age, and already has global ambitions
Medikabazaar has raised $165 million (about ₹1,380 crore) via debt and equity to date. It was reportedly in talks to raise $150-200 million last year, which did not materialise after the forensic audit.
Lodha said that the company is not looking at raising funds currently and that it built a good cash flow in Q4.
'We are continuing to be focused on cash flow," he said. 'Wherever the investment is required, I think the existing investors [are] very bullish on the business… they are ready to fund it further."
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