US private equity firm KKR & Co Tuesday said it has acquired a “significant” minority stake in Infinx Services Pvt Ltd, an AI-driven healthcare revenue cycle solutions provider owned by Tandon Group. Existing shareholder Norwest Venture Partners also topped up its investment in the company.
As on March 31, 2023, Norwest Venture Partners held 26.6% stake in the company.
Although financial details were not disclosed, sources familiar with the matter informed VCCircle that the deal falls in the range of $150-200 million (Rs 1,250- 1,667 crore).
The acquisition will be made through KKR’s Asian Fund IV, aimed at leveraging the private equity major’s expertise in global healthcare and technology sectors to propel Infinx’s growth, expand its network, and support further acquisitions, as per a joint statement by KKR and Infinx.
Co-founded in 2012 by Sandeep Tandon and Jaideep Tandon, Infinx provides data-driven revenue cycle management solutions for the healthcare sector, primarily focusing on the US market.
The Mumbai-based company reported consolidated net sales of Rs 585 crore for the fiscal year 2023, marking a substantial increase from Rs 350 crore in the previous fiscal. Profit after tax surged to Rs 10 crore from Rs 7 crore during the same period.
“Digital transformation will play an increasingly important role in helping companies to streamline complex processes and improve productivity,” said Akshay Tanna, partner and head of India private equity, KKR. “We look forward to leveraging KKR’s industry and operational expertise to further enhance Infinx’s scale and capabilities”
Rothschild & Co advised Infinx for the deal.
“The strategic partnership with KKR will allow us to accelerate our growth through continued strategic acquisitions and to broaden our market reach to new healthcare specialties,” said Sudeep Tandon, managing director of Infinx.
The company's solutions serve 172,000 healthcare professionals across 4,000 facilities, including ambulatory, acute care, and post-acute care providers. Infinx has a clientele of over 400 leading healthcare provider organizations, encompassing hospitals, health systems, and outpatient healthcare providers.