Project for the Subject

Innovation and Entrepreneurship

(UTA012)

Submitted by:

Chavi Sharma 101701003

Gurmehak Brar 101701005

Karan Kapur 101701010

Rishabh Ranade 101701019

Group : 3CHE_3

Course Instructor:
Dr. Parminder Singh

VENTURE LAB,

THAPAR INSTITUTE OF ENGINEERING AND TECHNOLOGY, PATIALA

Session: January-May, 2020

 Title Page No.

Certificate 2

Acknowledgement 3

Chapter 1: Opportunity Analysis

1.1 Opportunity Uniqueness 4

1.2 Solution Proposed 4

1.3 Uniqueness of the Solution 4

1.4 What problem of the market segment is solved by your solution 5

1.5 Identification of users and customers 5

1.6 How will the target users be benefited by the solution 5

1.7 How will users discover and adopt their solution 6

1.8 How the market segment will get affected by their solution 6

1.9 Oppurtunity Canvas 7

Chapter 2: Customer Validation Survey

2.1 Sample form used for customer survey 8

2.2 Size of the customer survey and its documentary proof 11

2.3 Detailed Analysis of the survey 14

2.4 Conclusion of the survey 15

Chapter 3: Financial Model

3.1 Cost Structure 16

3.2 Revenue Structure 18

3.3 Profit & Loss Statement 20

3.4 Cash Flow Statements 21

Chapter 4: Reflections & Future Expansion 22

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 CERTIFICATE

This is to certify that the project report on, DocMate (Group 3CHE_6) being submitted by Ms.
Chavi Sharma, Ms. Gurmehak Brar, Mr. Karan Kapur and Mr. Rishabh Ranade to the Venture
Lab, Thapar Institute of Engineering and Technology, for the fulfillment of the course
requirement of INNOVATION & ENTREPRENEURSHIP (UTA012) is a bonafide record of
work carried out by us in conformity with the rules and regulations of the institute.

The results presented in this report have not been submitted, in part or full, to any other

University or Institute for the award of any degree or diploma.

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 ACKNOWLEDGEMENT

We are thankful to the Chemical Department of Thapar Institute of Engineering and Technology,
to inculcate this subject in our course scheme. This subject helped us to achieve a level of
confidence in terms of entrepreneurial ideas and how to take the next step. Further we are
thankful to our course instructor Dr. Parminder Singh who entrusted us with this idea and gave
us all his time and knowledge required to undertake it.

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 OPPORTUNITY ANALYSIS

1.1 Opportunity Identification

According to a 2017 study, about 1.33 billion of the Indian population is being served by 1.8
million RMPs(Registered Medical Practitioners) which means the ratio of doctors to the Indian
population is 1.34 doctors for 1000 Indian citizens. Although this metric is congruous with the
WHO( World Health Organisation) standards, we see that there's always a doubt in the mind of a
patient about the standard of the medical care they receive. India has failed to reach its
Millennium Development Goals related to health. The definition of 'access is the ability to
receive services of a certain quality at a specific cost and convenience. More so, an ordinary
man/woman does not have enough knowledge about the specialist and their related fields. In the
era of technological advancement, everyone has a right to an interconnected system of health
care by the best healthcare providers but today, the majority of people don't have this
convenience.

1.2 Solution proposed

They have the following modes to access healthcare professionals:

● Through our monitored chat

● Audio call
● Face to Face
● Our users would have the option of:
● Connecting to the most qualified and highest-rated doctors in their area
● Keeping track of their medical record
● Medicines delivered to their doorstep with our weekly subscription of medicines
● 24*7 access to healthcare providers
● Book lab tests through our platform according to their convenience

1.3 Uniqueness of Solution

● Keeps track of your medical records thus offering greater accessibility to prescriptions
and lab/test results
● Offers delivery of medicines through an automated system monitored by the doctor
● Directed and personalized service through our chat and call platform
● A listing platform for nearby medical services with a discounted consultation fee.

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 ● A subscription-based platform that makes healthcare convenient

1.4 What problem of the market segment is solved by our solution

Problem of the consumer:

1. Confusion by the plethora of health care providers

2. No provision of 24*7 service
3. No platform providing timeline feature for health records

Problem of the supplier:

1. Lack of market linkages

2. Lack of credibility and reviews based on actual interaction

1.5 Identification of users and customers

·​ Age groups between 18-25 which comprises students.

​

·​ Age group between 25-35 includes people who are working and living independently.
​

· Age group 35-55 includes middle aged people who have parents living in different cities will
​

help them monitor their parents health.

·​ Age group 55+

​

·​ People diagnosed with chronic medical conditions.

​

1.6 How will the target users be benefited by the solution

· ​Appointments will be online. Customers can choose the doctors based on their ratings
according to the area.

·​ All reports and prescriptions will be saved and updated regularly.

​

·​ Free deliveries of medicines from local medical stores.

​

· ​If the patient suffers from multiple problems then the doctors will be discussing the reports
regularly.

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·​ Special discounts will be given to the customers.
​

1.7 How will users discover and adopt their solution

· Advertisements on social media platforms.

·​ First appointment and consultation will be free for all users.

​

·​ Local pharmacies and labs will help in promoting DocMate.

​

·​ Recommendation from various well-known doctors.

​

1.8 How the market segment will get affected by their solution

DocMate is an user friendly app. It is an all in one subscription based model which will help in
finding the right doctor, booking diagnostic test and obtaining medicines. It will allow the users
to maintain their record and share it with the doctors across the country. All these facilities will
be given at subsidized rates as compared to other platforms which are already existing.

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 CUSTOMER VALIDATION SURVEY

2.1 Sample form used for customer survey

A customer validation survey was created in order to analyze the customer base. Through this
study, we collected data from various age groups and processed the same to evaluate the market
needs and the scope for improvement for our model. The basic questions asked were related to
the customer’s age, healthcare requirements and familiarity with online healthcare services.

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2.2 Size of the customer survey and its documentary proof

The survey was conducted and more than 100 responses were gathered and analyzed. The
participants belong to different demographics such as age, gender and cities.

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2.3 Detailed analysis of the survey

● 26.7% of the total participants suffer from medical conditions that require them to consult
the doctor on a regular basis.
● Only 6.7 % of participants use healthcare apps.
● The healthcare apps listed by the individuals were Practo, Applehealth, flo and
MyfitnessPal.
● Applehealth and MyFitnessPal being fitness apps and flo being a fertility app for women,
we can deduce that a lot of people are not aware of what services do healthcare apps
provide or what they are capable of.
● 40% of the people who use healthcare apps use Practo, making it a potential competitor
for our model.
● 17.2% of the participants do not have health insurance hence making healthcare services
more expensive for them.
● 82.2% of the participants have health insurance which enables them to claim healthcare
services with more economic ease.
● 68.9% of the participants rely on local medical stores to acquire medicine and other
essentials while only 22.2% of the participants rely on other sources. This indicates that
throughout the country local pharmacies and medical stores are still the major preference
of people for buying medicines or other essential healthcare products.
● Since only 22.2% of the participants rely on other sources for acquiring medicine we
infer that other services such as online medical stores are not popular among people and
they need to be publicized in order to expand the customer base.
● 53.3% of the participants keep a record of their prescriptions while 20% of them do not.
● Most of the participants are charged a sum between Rs.500-700/- for doctor consultation.
While 8.5% of the people were charged more than Rs.1000/-.

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 ● Around 60% of the participants find it moderately difficult to select the appropriate
doctor while less than5% find it extremely easy and a little more than 5% find it
extremely difficult.
● 93.9% of the participants would like to use an all-in-one medical platform that allows a
user to assess health issues, find the right doctor, book diagnostic tests, obtain medicines
as well as store and share health records with doctors all across the country.

2.4 Conclusion of the survey

By observing the survey, we can certainly conclude that people would be pleased to use a
healthcare app that addresses all the medical requirements on a single platform. We aim to
integrate the three verticals of healthcare and provide the user with an easy and hassle-free
experience. Healthcare is essential to all regardless of their age, gender or city and we plan to
make it more accessible through our initiative. We also aim to provide affordable healthcare
through our various subscription plans and timely offers and discounts. Online medicine delivery
is certainly an alien concept to many in our country, we also plan to promote this concept by
providing medicine delivery services from local trusted pharmacies and medical stores on our
app and website.

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 FINANCIAL MODEL

3.1 Cost Structure:

Capital Investments & Expenses:

● Development of Platform
● Payments to Doctors per hour of services
● Marketing and Promotion
● Data Banks for Storage

For the projected revenue structure, P&L statements and Cash flow statements few
Financial Assumptions have been taken:

These assumptions play a critical and analytical role on which our revenue model is based and
should be read carefully.

● Our Financial model is a conservative model to approach a modest and achievable

number so as to keep our finances safe and, minimize risk
● On conducting extensive research, our competitor’s consumer base was analyzed with
over 10 million users in the past 10 years (as of 2020); where more than 5 million users
joined after 2017, showing an increment of users as the years passed by and the sudden
fame of Medical Platforms
● So, on calculating the number of users over the last 3 years and taking the factor of
Covid-19, which is increasing the demand of such platforms, the following growth in the
current competitor was found:

Fig.1 Competitor User-base growth over the last 10 years

● Now to not get ahead of ourselves and keep this model as conservative as we can, we will
consider that on our launch after our initial publicity and marketing we only attract 10%
of the daily number of users joining such platforms (Don’t let this number obliviate our
true potential) i.e ​603 Users/day

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 ● With the ​603 Users/day and a conser 30% YoY (Year on Year) growth of users; A 5 year
projection

Fig.2 Projection of users over 5 years starting from 2021

Quotations/Expense Breakdown (For the First Year):

● Platform Costs and Data Storage:

■ Website Hosting -Rs 20,000
■ App and Website Maintenance -Rs 3,00,000 /-
■ Employees -Rs 2,00,000 /-
■ Cloud Storage for Records -Rs 90,000 /-

Platform Development Costs and Maintenance/Annum: Rs 6,10,000/-

● Doctor’s fee:
■ Average Doctors Fee: ​Rs500/-
■ Number of users going for online consultation - 50% of Number of new
users
■ A doctor/hour visits 4 patients and works on an average 3 hours/day on
our platform. ​12 patients a day

Therefore, for such a scenario we would need 300/12 = ​25 Doctors a day working on our
platform, providing services

Doctor’s Fee/Annum​: Rs1500 * 25 Doctors * 365Days =​ Rs 13,687,500/-

(Doctors get paid this amount depending on number of patients they diagnose, so the payment
first gets processed through us and then goes to doctors)

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We do not include this as a cost to setup our company, but it is rather an operating cost.

● Marketing and Advertisements /Annum: Rs 3,00,000/-

● Delivery Costs/Annum: Rs1,00,000/-

● Legal Fee and Office Rent: Rs9,90,000/-

Total Expenses/Annum: Rs 14,397,500/-

Costs for Setting up DocMate: Rs 20,00,000/-

3.2 Revenue Structure:

● Payment for Online Consultation
● Different tier Subscriptions for various other services
● Delivery of medicines
● Paid promotions for a certain pharmaceutical company
● Advertisements on the platform

Revenue Breakdown:

● Online Consultation:
■ Out of the 600 new users ​300 (50%) ​users a day pay ​Rs150 ​for a
consultation
■ And throughout the year New-users come every day, but a few previous
users also pay for more consultations lets say 40% previous users
■ So, out of the ​219000 Users ​as shown in fig 2, only 40% users go for
online consultations on an average of ​3 times per year​ i.e ​87,600 users

Revenue generated from online consultations: ​Rs300*87600 = ​Rs26,280,000/-

Rs300 (150 *2 times, because first Consultation is free ​Marketing offer​)

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 ● Subscription to access free delivery and Health record management:
■ Beyond the 40% of online consultation consumers only 15% users buy a
subscription package
■ 3 Subscription packages of Rs2100/-, Rs1600/- and Rs999/-
■ 3% Consumers per year go for Rs2100, 4% for Rs1600 and 8% for 999

Subscriptions Bought: ​Rs2100*6570 + Rs1600*8760 + Rs999*17520 = ​Rs23,247,480/-

● Delivery of Medicine for people without subscription/Annum: Rs 2,00,000/-

Total Revenue Generated: Rs 49,727,480/-

And from this revenue generated operating costs of doctors would be subtracted

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3.3 Profit and Loss Statement:

Profit and Loss Statement Predicted P&L

DocMate 2021-2022

Items Amount(Rs)
Revenue

Promotion of Pharmas 200000

Online Consultation 26280000
Subscription 23247480
Delivery Of Medicines 90000
Inventory 50000

Total Revenue 49867480

Expenses
Capital Expenditures
Pre-Paid Office Lease -800000
Office Equipment -100000
Platform Development -320000

Operating Expenditure
Marketing -300000
Employees -200000
Cloud Storage -90000
Delivery Costs -100000
Doctor Fees -13687500
Legal -90000

Total Expenditure -15687500

Profit/Loss 34179980

Profit

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3.4 Cash Flow Statement:

Catering for the

year ended at 31st
Cash Flow Statement December 2022
DocMate 2021-2022

Items Amount(Rs)
CF from Operating Activities

Cash Receipts from Customers 49527480

Cash Receipts to Doctors -13687500
Employee Salaries -200000
Cash from Delivery (Delivery Revenue - Delivery
Costs) -10000
Legal -90000
Marketing and Advertisements -300000

Net Cash Flow From Operating Activities 35239980

CF from Investing Activities

PrePaid Office Lease -800000

Office Equipment -100000
Platform Development -320000
Cloud Storage -90000

Net Cash Flow From Investing Activities -1310000

CF from Financing Activities

Loan to Setup platform 2000000

Interest @11.49% for 12 months out of 24 -1114896

Net Cash Flow from Financing Activities 885104

NET CASH FLOW 34815084

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 FUTURE EXPANSION

Our goal is to provide our services all over the country, also by not being region-specific, we will
gain access to entirely new markets and clientele. This can drive a sustained rise in our services
and sometimes tapping into a new market also helps to bring funds for our venture.

Also along with the patients, we plan to expand our services to medical caregivers who sign-up
with us by providing them with timely detailed analysis of the user feedback. We also plan to
venture into the health insurance sector, by partnering with insurance companies and helping the
users acquire health insurance since unprecedented medical emergencies especially the ones
including hospitalization can derail people’s finances. Thus, health insurance is essential for all
individuals.

​REFLECTIONS

Entrepreneurship is a skill that everybody should learn and have knowledge about. It teaches us
to think differently, nurture unconventional talents, skills and develop leadership qualities.
Furthermore, it creates opportunity, ensures social justice, instills confidence and stimulates the
economy. We all learned the concepts and basics of getting into startups. We got a good insight
into how to go about the planning and building of an idea along with evaluating actual
opportunities and needs of that venture. Also, we learned about the crucial financial practices and
models which are really important for building ideas for successful ventures.

We learnt how to implement ideas and plan them. We all realized that there are better and much
easier ways for solving real-world problems and helping people. Moreover, we understood that
taking risks and a solution-oriented approach is important when starting a new venture.

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