Merck Invests in Southeast Asia’s Healthtech Revolution

In a groundbreaking move, U.S. pharma giant Merck has thrown its weight behind HD, a Thai healthtech startup, pioneering change in Southeast Asia’s healthcare landscape.

This bold venture comes at a time when big names in both tech and pharmaceuticals are evolving the healthcare industry with artificial intelligence. Companies like AWS and General Catalyst have already begun to harness AI in healthcare, and now, HD has joined the ranks with its innovative approach.

HD, renowned for its healthcare marketplace HDmall, seeks to fix the fragmented medical industry across Southeast Asia. It offers a digital platform where users can find specific surgeries, health check-ups, and healthcare providers such as hospitals and clinics. This initiative also aims at lowering costs by aggregating services and giving users installment payment options.

With a recent $7.8 million equity boost, the startup plans to enhance its marketplace and expand its AI capabilities. Merck’s involvement marks its first venture into a healthtech startup in the Asia Pacific, as it participates alongside others like SBI Ven Capital and FEBE Ventures.

CEO Sheji Ho sheds light on Merck’s interest, stating, “MSD, known for producing HPV vaccines, approached us because we were successful in selling these vaccines online, administered at our affiliated hospitals and clinics.” This unique blend of e-commerce and healthcare is positioning HD as a leader in the marketplace.

The five-year-old startup holds over 30,000 SKUs with partnerships involving more than 2,500 healthcare providers and thousands of customers, generating a remarkable $100 million in annual sales. By 2025, HD aims to connect with 5,000 healthcare providers and serve 600,000 patients, illustrating its expansive vision.

Adding to its arsenal, HD developed an AI chatbot, Jib AI, improving service delivery through instant, high-quality interactions. Today, AI agents handle over half of all customer interactions, with ongoing enhancements set to integrate features like order processing and medical information retrieval.

Looking forward, HD plans to broaden its external partnerships with insurance firms, pharmaceutical companies, and educational institutions. This fosters a dynamic network poised to support the wider adoption of healthcare AI solutions.

While similar ventures in Southeast Asia struggle post-pandemic, HD’s approach diverges by focusing on productized services, similar to Western platforms but adapted for regional needs. In places like Thailand and Indonesia, where family doctor systems are uncommon, HD simplifies the patient’s journey from search to service.

The platform offers various healthcare services, from cancer screenings to surgeries, making healthcare accessible and manageable for users who otherwise face high out-of-pocket expenses. By centering on transparency and comparison among providers, HD empowers users to make informed choices.

As HD eyes expansion into Vietnam and Myanmar, it leverages familiarity with markets where healthcare payments are largely cash-based and direct-to-provider. This strategic move reflects HD’s adaptability to regional healthcare intricacies, aiming to become an influential healthcare bridge in Southeast Asia.

With Merck’s backing, HD is set to become a driving force in reshaping healthcare access in Southeast Asia. Through continuous innovation and a commitment to evolving its AI capabilities, the company is positioned to revolutionize how users engage with healthcare services across the region.

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Emmanuel Kesse

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