Medical crowdfunding has been instrumental in financing various treatments: Piyush Jain Co-founder, Impact Guru (2024)

In recent years, crowdfunding has become an extremely important financial alternative across the globe. According to a report by Mordor Intelligence, the Crowdfunding Market size is expected to grow from $1.30 billion in 2023 to $2.69 billion by 2028, at a CAGR of 15.70 percent during the forecast period (2023-2028).

Crowdfunding is a method of raising capital for a project or venture by raising money from a large number of people, typically via the Internet. Amid the Covid-19 pandemic, Prime Minister Narendra Modi asked Indian citizens to contribute to the PM CARES Fund, a type of crowdfunding, in order to support the government.

Experts maintain that by the end of 2023, the transaction volume in the Indian crowdfunding market is expected to reach $5.04 million, and the transaction value is projected to grow at a CAGR of 0.59 percent. Interestingly, after the entry of platforms like Kickstarter, Wishberry, Fuel a Dream, Ketto, Milaap, and Impact Guru, the concept was popularised in India.

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Crowdfunding has also become pivotal in making healthcare affordable and accessible for critically ill patients. According to reports, medical crowdfunding has emerged as a popular option as access to affordable healthcare is still a challenge for many in the country.

In an email interaction with Financial Express.com, Piyush Jain Co-founder & CEO, ImpactGuru.com talked about the necessity of crowdfunding in treating rare disorders, the role of crowdfunding in the healthcare sector, and misconceptions associated with crowdfunding among others. Excerpts:

What is crowdfunding? What has been the influence of crowdfunding in India’s healthcare sector?

Medical crowdfunding refers to the practice of raising funds from a large pool of donors to cover medical expenses for the treatment of cancer, accidents, rare disease, complex transplant procedures, etc. India faces a significant healthcare financing challenge, with a substantial annual gap of $72 billion due to exorbitant out-of-pocket expenses. Middle-class patients find themselves in urgent need of funds, requiring more than INR 26 lakhs per minute, which they often obtain through personal savings, assistance from relatives and friends, and resorting to both formal and informal money lenders.

Shockingly, over 500 million individuals from the middle-class segment lack any health insurance coverage, while a large majority possess inadequate policies with a typical sum assured of less than INR 5 lakhs. Medical crowdfunding attempts to bridge the affordability gap in India. So far, we have helped more than 30,000 patients raise funds for their medical treatment expenses with the support of a 30+ lac-strong donor community. Medical crowdfunding in India has been instrumental in financing numerous liver transplants, heart surgeries, cancer treatments, kidney transplants, and NICU treatments. In various ways, medical crowdfunding has served as a remedy to address the deficiencies that render healthcare in India out of reach or too expensive for many individuals.

What has been the role of crowdfunding platforms like ImpactGuru? How has been your journey so far?

We started Impact Guru with the vision of promoting universal healthcare and making healthcare affordable to all. Our vision encompasses an India where individuals, regardless of their financial circ*mstances, can access high-quality secondary and tertiary healthcare, particularly during medical emergencies or life-threatening illnesses. Until recently, medical crowdfunding was a foreign concept to many people in India. Awareness of healthcare crowdfunding among patients, hospitals, and doctors was relatively limited. Educating and convincing others about its benefits posed significant challenges. As a start-up, we encountered diverse obstacles such as growth, scalability, cost efficiency, and sustainability. However, this journey has been immensely rewarding, filled with invaluable lessons. We have persevered, displayed determination, and embraced innovation in the face of adversity, which has propelled us forward, making us stronger with each passing day.

We have come across crowdfunding ads for rare medical conditions. How do crowdfunding platforms help such people?

Our mission at Impact Guru is to help fund the treatment of 1 million patients by 2030. We recognize that not every individual initiating a fundraising campaign has an extensive social network. However, our platform has even enabled patient families with monthly earnings below INR 30,000 to raise over INR 16 crore successfully for the treatment of rare diseases. This achievement serves as a testament to the effectiveness of our fundraising efforts and the comprehensive guidance provided to campaigners. At Impact Guru, we possess a profound understanding of our donors’ preferences and interests. When it comes to promoting specific cases, we take into account various factors, such as the rarity and urgency of the situation, its alignment with the mindset of online donors, and the patient’s social network strength. We place a particular emphasis on cases involving children and/or individuals with rare medical conditions, as we have observed that online donor empathy is significantly higher for certain cases.

Is crowdfunding a long-term solution to the existing problems? Are there any alternative solutions to these problems in the near future?

Healthcare crowdfunding is popular even in the US, UK, and China which have both much higher levels of health insurance penetration and large social security health benefit programs for the middle-class, relative to India. Crowdfunding will continue to play a key role in funding high-cost critical illnesses globally given the lack of insurance coverage and the rising incidence of serious critical illnesses particularly cancer.

The upcoming decade presents a significant opportunity for healthcare financing in India, considering the substantial inflation in medical costs. We firmly believe that a comprehensive solution, integrating crowdfunding, lending, and insurance, can effectively address the financial challenges faced by patients when it comes to funding their medical expenses. Our renewed objective is to cater to the healthcare financing needs of patients seeking both critical and non-critical treatments, including in-patient and outpatient healthcare expenses. To achieve this, we have established an integrated healthcare finance ecosystem that incorporates various solutions, under the ambit of a parent brand, CarePal.

These solutions include ImpactGuru.com, our crowdfunding platform, CarePal Money, a lending marketplace platform, and CarePal Secure, which encompasses a health insurance marketplace and health protection benefits marketplace. By combining these elements, we aim to provide a holistic approach to healthcare financing.

How does ImpactGuru make sure that the fund requests are genuine? How are you competing with other players like Ketto?

To ensure the utmost trust and safety, we have an in-house Trust & Safety team comprising over 40 dedicated members. This team follows a meticulous five-step due diligence process.

Step 1 involves acquiring relevant medical documents for each fundraising campaign, including hospital estimates, bills, and diagnosis documents.

In Step 2, we conduct a comprehensive assessment of the cost estimates by leveraging historical data of surgeries on our platform and utilizing market intelligence/TPA (insurance) price estimates.

For Step 3, we request and verify KYC documents such as Aadhar and PAN cards, using a variety of technology tools and government portals to authenticate their validity.

To ensure the authenticity of the medical documents and cases, Step 4 entails cross-verifying the information through our Tele verification or field verification team.

In Step 5, we meticulously manage fund transfers, employing strong documentation and processes. Our goal is to facilitate direct cashless settlements to hospitals, with reimbursem*nts (if necessary) being processed only against valid invoices and bills after careful verification. Through these comprehensive steps, we aim to maintain the highest level of scrutiny and safety in managing the funds and ensuring that they are utilized for their intended purpose.

How does crowdfunding exactly work? What are some misconceptions about crowdfunding?

Medical crowdfunding is a mechanism whereby a large number of people, through their smaller contributions can help a patient raise a significant amount to cover their treatment expenses. For instance, instead of relying on a single donor to contribute the entire amount say Rs 5 lakhs, a simplified approach involves reaching out to 1,000 individuals who can each donate INR 500, resulting in a total of INR 5 lakhs raised.

Here are some of the common misconceptions about medical crowdfunding:

• Crowdfunding works only in case of serious medical emergencies: Some people assume that medical crowdfunding is only suitable for extreme cases or life-threatening conditions. While it is true that such cases often receive more attention, crowdfunding can be utilized for a wide range of medical needs, including chronic illnesses, rare diseases, and even routine medical procedures. People with different medical conditions can benefit from crowdfunding based on their specific circ*mstances.
• Crowdfunding is an alternative to health insurance: Medical crowdfunding is often seen as a substitute for health insurance. However, crowdfunding is not a replacement for comprehensive health coverage. Crowdfunding should be considered as an additional financial resource rather than a primary means of covering medical expenses.
• It’s unsafe to donate on a medical crowdfunding platform: The personal data submitted as documentation to our crowdfunding website is not accessible to any third party. To deal with this, ImpactGuru’s website uses the highest level of SSL encryption currently available on the internet. On our fundraising site, be it starting a fundraiser, or donating to one, our platform is completely safe and secure.

What are your upcoming business plans?

Last month, we announced the launch of Impact Guru’s parent brand – CarePal Group, which along with Impact Guru also encompasses CarePal Money – a lending marketplace platform and CarePal Secure, which is a health insurance marketplace and health protection benefits marketplace. Our broader objective is now to address the healthcare financing requirements of patients seeking both critical and non-critical (eg. elective) treatments, and funding both in-patient and outpatient healthcare expenditures. We aim to impact 100,000+ patients in the next two years through the integrated healthcare finance solution comprising crowdfunding, lending, and
insurance solutions.

People often opt for crowdfunding to get treatments for rare disorders and neuromuscular diseases like DMD and SMA. Do you think this demand can actually enable the government to act on the unmet needs?

Yes, indeed. Raising funds is not the only motive of medical crowdfunding. It also encompasses raising awareness about a particular cause among the people. For instance, we launched #IndiaFightsSMA initiative to raise INR16+ cr each for 3 children – Teera Kamat, Dhairyaraj Sinha, and Ayaansh Gupta diagnosed with Spinal Muscular Atrophy (SMA). Baby Teera was India’s first successful fundraiser by a crowdfunding platform for SMA. We want to definitely applaud the Union and state governments’ initiatives through various healthcare and welfare schemes including Ayushman Bharat, PM Relief Fund, CM Relief Fund, and certain disease-specific and/or other healthcare funding schemes. They are doing the best they can to help as many patients as possible in India especially for rare disease patients.

There are still people who don’t have access to social media and are in dire need of such facilities. How does ImpactGuru help such people?

Crowdfunding is relatively a new concept in India. Different patient families require different degrees of fundraising support. We understand that not every patient/beneficiary may have access to social media. To solve this problem, our dedicated fundraising coach or campaign manager handholds the patient’s family through the entire fundraising journey as the primary point of contact. Storytelling is the key to successful fundraising. While the Trust and Safety Team handles the comprehensive due diligence process, the fundraising coach focuses on understanding the unique circ*mstances and challenges faced by the patient’s family, including their financial and medical struggles. Leveraging this understanding, they develop a tailored fundraising strategy. For instance, if the patient is a teacher, the campaign may involve mobilizing students and alumni, while for a corporate employee, it may involve corporate and HR communication.

Fundraising coaches review the campaign’s content and graphics, encouraging patients to create video appeals that establish trust with potential donors. If necessary, these coaches collaborate with the internal creative and communications team to refine fundraising appeals, organize new photoshoots, and make adjustments to audiovisual assets. The goal is to create compelling donation video appeals that resonate with potential donors and inspire them to contribute. We also undertake marketing campaigns for certain patients after considering various factors such as the rarity and urgency of the situation, while also factoring in our donor preference.

What is the status of crowdfunding in India’s healthcare system as compared to other countries? What more needs to be done?

As India grapples with rising healthcare costs, crowdfunding has emerged as a potential solution. However, it is important to acknowledge that India is still in the early stages of embracing crowdfunding for healthcare. For instance, in China, platforms like Shuidi, a listed company on New York Stock Exchange, have raised over $1 billion annually for healthcare-related campaigns. This impressive figure showcases the power of crowdfunding in a country with a massive population and a strong
culture of community support. Meanwhile, in the United States, the United Kingdom, and Europe, crowdfunding platforms like GoFundMe has been instrumental in raising over $700 million annually for healthcare causes. These figures highlight the significant impact crowdfunding has had in these regions, where it has become an integral part of the healthcare system. While India is still catching up to other countries in terms of medical crowdfunding, the early signs are promising.

Medical crowdfunding can be further boosted by encouraging strategic partnerships with government and private hospitals. Furthermore, the CM Relief Fund or Health Ministry of any the state could do an innovative partnership with Impact Guru so that in the event a patient’s treatment is part-funded or post-hospitalization costs are not covered, patient families can learn about and explore the option of healthcare crowdfunding to raise additional funds instead of resorting to traditional means such as taking loans at expensive interest rates, or selling/mortgaging gold or jewelry to fund any balance unfunded healthcare costs. Persuading and partnering with corporates to better leverage the CSR funds towards medical causes will also benefit the patients in accessing affordable treatment, in turn boosting the medical crowdfunding industry. Also, the government can provide special tax incentives to crowdfunding platforms such as lower corporate tax rates and GST rates and subsidies for marketing expenditure so that some of these savings can be eventually passed on to the patient’s family.