Due to increased health care awareness, research and development, enhanced services and increasing expenditure by public as well as private players, health care has become one of India’s largest sectors – in terms of revenue generation as well as employment. Healthcare sector comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment.

As per the report of India Brand Equity Foundation, the overall Indian healthcare market today is worth US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centers, and pharmaceuticals, constitutes 65 per cent of the overall market.

Such a huge potential in the sector is attracting entrepreneurs to align the unorganized market and develop their business model. Practo, 1mg, Zoctr, Care24, Zozz etc are some of the known names of health care startups. So, If you are planning to develop health care startup, here are few thoughts from FS Labs considering existing setup of 1mg as base for the analysis –

Existing Setup of 1mg

Existing set of 1mg includes a lot of simplified process that helps consumers to fulfill their health care need. Simplified process of buying medicines rather than roaming around is attracting consumers and investors towards 1mg –

[A] Medicines – E-commerce setup for medicines along with the relevant details like use of medicines, common side effect and substitutes available so that consumer can select the cheaper medicine of same composition

[B] Labs – Simplified setup of getting the prescribed tests and health checkups done as a home pickup service

[C] Ayush – E-commerce setup for homeopathic medicines along with the recommendation of medicines based on disease

[D] Doctors – Directory portal of nearby doctors categorized based on specialization along with the booking facility

[E] Articles – Knowledge base of health care in form of articles

But to make it a one stop solution for consumer for all of their health care needs, the areas which are still untouched in health care by 1mg need to be covered as well.

FS Labs - Better 1mg

Health Care Need – From Consumer Point of View

One of the easiest ways to analyze the existing business model for current market acceptance and further scope of improvement is by thinking from consumer point of view. What is the need of consumers? What are the options available with consumer to fulfill the need? How does consumer select the best fit choice? Answer to these basic questions gives a frame work for scope of improvement in existing setup as per consumer need.

To analyze the scope of betterment in existing setup if 1mg, every single need of health care can be categorized in following –

 [A] Urgent Needs – Urgent health care needs include those requirements of consumers for which patient needs medication instantaneously and the patient or people attending him have minimum time for decision making. So the known options become the obvious choice in such cases.

[B] Elective Needs – Elective health care requirements are those where consumers have sufficient time to search, compare and decide the best fit option. So the survival of the fittest player becomes obvious.

[C] Preventive Health Care – A health conscious consumer generally prefers to go for a walk, gym, yoga on daily basis, take the proper diet and other preventive activities to stay fit. For this preventive health care, people prefer to do a proper research in finding the best fit gym available nearby, nutrition facts of food, daily diet planning etc. So the proactive player has the high probability of winning the race.

Better 1mg

1mg could be made better than the existing setup by taking care of all the health care needs in better manner –

[A] For Urgent Needs of Consumers – For urgent health care needs, consumer generally wishes to get the first aid instantaneously and move patient to the hospital as soon as possible. So, to cover the urgent health care needs of consumers, 1mg could be made better by incorporating following facilities –

  • Optimized service in terms of time for first Aid service to stabilize the critical condition of patient
  • Tie-ups with Ambulance to move patient to nearby or desired hospital
  • Map based exact tracking of nearby hospitals to reduce the travel time of patient (if ambulance is not being used as ambulance drivers are obviously aware of the route)
  • Quick paper work management tools for hospitals to save the time
  • Cost and facilities comparison of hospitals to help consumer in quick decision making

Other facilities like on-demand health care service can also be incorporated to facilitate consumers in their urgent need.

[B] For Elective Needs of Consumers – For elective healthcare needs, consumer generally wishes to compare the available choices on the parameters importance for him and then select the best choice. So to cover the elective health care needs of consumers, following points can be incorporated in 1mg.

  • Generalized knowledge base of disease and first aids to get more traction
  • Online consultation facility via chat, email or video calls to help people with time saving
  • Doctor recommendation based on the parameters important to consumers
  • On-demand health care service at home
  • Added facility in the conventional e-commerce setup like weekly, monthly order management system

Other facilities that can help consumers for their elective health care need should also be incorporated to make 1mg one stop solution.

[C] For Preventive Health Care – For health conscious consumers, the need is to provide the details of preventive health care tips and tricks –

  • Details of nearby Yoga, Gym, Fitness centers along with the comparison of facilities, cost etc.
  • Interactive diet plan for consumers based on age, work load etc.
  • Interactive calorie intake and required exercise monitoring tool
  • Health insurance facility as an additional service for consumers

Apart from the above betterments which are purely based on consumers need, other improvements that can be incorporated based on the other stakeholders needs are as follow –

  • Data base management tools for associated retails of medicines
  • Scheduling and management tool for doctors
  • Management tools for hospitals

By covering the requirements of all the concerned stake holders, 1mg could be made better. So if you are planning to start a health care startup, these were the few thoughts from FS to make your setup improved.


Wish you luck for your startup. Stay tuned with FS to know more.


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