Co-founder & CEO, Vaatsalya

When Dr. Ashwin Naik, 36, came up with the idea for Vaatsalya Healthcare in 2004, his dream was to get young doctors to come to small-town India. It was also the key to the success of his rather unique business model: world-class healthcare for rural and semi-urban consumers at rock-bottom prices. Four and a half years and nine hospitals later, he still struggles ¬¬to get doctors to buy into his dream, though he has got investors to do so. Vaatsalya is India's first hospital network focused on Tier II and Tier III towns.  Vaatsalya provides affordable healthcare services to thousands of families across Karnataka through hospitals in Hubli, Gadag, Bijapur, Mandya, Raichur, Hassan, Mysore, Gulbarga and Shimoga. Aavishkaar was the first investor to come on board at idea stage, followed by Seedfund and Oasis Fund.

“We thought good quality facilities would attract doctors. But it remains a big challenge,” says the young doctor-turned-entrepreneur. Dr. Naik, however, is far from giving up. Armed with $4.5 million in venture capital from Switzerland-based Oasis Fund, he plans to set up 13 more hospitals in Karnataka, the company’s home base, and elsewhere in southern India, taking the total network to 20. The social implications of such hospitals are immense. About 70% of India’s one billion-plus people live in rural and semi-urban areas. Here, access to quality healthcare is restricted to mom-and-pop clinics, charitable institutions and government hospitals. Pricing is arbitrary and almost always defined by individual doctors.

With Oasis on board, Vaatsalya can now also access the investor’s extensive microfinance network and experience to offer health insurance services. Currently, 90% of healthcare expenses in rural and semi-urban markets are not insured. That is just one part of Dr. Naik’s game plan. With 20 hospitals running smoothly in the South, the next step is 60 hospitals in the other five states. Villgro commends Dr. Ashwin Naik on his passion-charged venture and is thrilled to learn from his unique entrepreneurial experiences on the panel, “Health Innovations: Toward a Healthier India.”