August 28, 2023:

TRUSTlab Diagnostics, a business-to-business clinical laboratory, is gearing up to venture into the business-to-customer market by offering home collection services starting in September, according to Chairman and MD, Venkata Suman Cherukuri,.

Currently engaged in the process of establishing the necessary infrastructure, the startup intends to set up 10 collection centers across key locations, including Hyderabad, Noida, Gurugram, Guntur, and Vijayawada.

“The launch of our B2C home collection services is imminent. We are currently in the process of laying the foundations to ensure efficient service delivery. We plan to initiate operations in select markets and subsequently expand nationwide,” said Cherukuri.

The startup, established in 2021, operates within the B2B sector, primarily collecting samples as a reference laboratory. Cherukuri outlined, “At present, we have set up 13 labs, which it plans to increase to 22 by the end of FY2024 with an approximate investment of Rs. 20 crore.” In addition, the company plans to raise a seed round in March 2024.

The expansion strategy focuses predominantly on tier 2 and tier 3 cities, where healthcare often faces neglect, noted Cherukuri. “While many gravitate towards major cities for business, we recognise the substantial potential within Tier 2 and Tier 3 cities in terms of volume. We have the opportunity to draw business from these segments,” he explained.

TRUSTlab’s strategic move into the B2C market marks a significant step in its growth trajectory, supported by an expanding collection centre network and a workforce augmentation plan. The startup also has plans to expand its workforce, aiming to grow from 159 employees to 200 by March 2024.

Speaking about the industry, Cherukuri highlighted the projected market size of India, which will reach $20 billion by 2026. He also pointed out that due to relatively low barriers to entry, competition has intensified, leading to the emergence of numerous companies and diagnostic centres.

“One key concern,” he added, “is the lack of stringent government regulations in this industry. Increased government oversight would be beneficial. Additionally, profitability in the sector is also mostly under pressure.”

TRUSTlab is a central clinical reference laboratory based in Hyderabad. It launched its departments of microbiology, serology and haematology which was followed by work on flow cytometry, prenatal and new-born screening, histopathology and cytogenetics.  

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