Digital healthcare platform Mfine, which was one of many venture capital-backed startups to lay off their staff in recent weeks, on Monday said it will merge with the diagnostics business of LifeCell International Pvt. Ltd.
The merged entity - LifeWell - has secured $80 million from healthcare-focused global investment firm OrbiMed, said Mfine in a statement. OrbiMed had joined in as a new investor in LifeCell International last year with investment of around $30.5 million to help boost the company's growth plans and enter adjacent categories like fertility health and cell-based therapeutics.
“We see a large opportunity in India's healthcare delivery market. This is still an unorganized market and consumer demand for high quality services is soaring," said Sunny Sharma, partner and senior managing director, OrbiMed Asia, which was also an investor in e-pharmacy firm NetMeds that was bought by Reliance in 2020.
LifeWell will use the fresh capital to build a large-scale healthcare delivery platform with full stack diagnostics, the statement said.
Notably, Mayur Abhaya, managing director and chief executive officer, LifeCell International, was a seed investor in Mfine.
"This combination paves the way to create a new market leader that meets the emerging customer expectations," said Abhaya in the statement.
The statement noted that LifeCell’s diagnostics business and Mfine have a combined user base of more than 6 million that is growing 100% year-on-year.
LifeWell aims to serve over 50 million users over the next four years. It has significant strategic investments and acquisitions lined up to achieve that aim, it added.
Mfine - founded in 2017 by former co-founder of Myntra Ashutosh Lawania and former chief business officer at Myntra Prasad Kompalli - offers consultation with specialists on its platform. It also partners with hospitals, clinics, diagnostics and radiology service providers to generate online demand.
The Bengaluru Bengaluru-based Mfine, operated by Novocura Tech Health Services Pvt. Ltd, raised $48 million Series C funding round co-led by Moore Strategic Ventures and Beenext in September last year. The round also saw participation from existing investors, Stellaris Venture Partners, SBI Group Japan, SBI Ven Capital Singapore, Heritas Capital, Prime Venture Partners, Y’S Investment Pte Ltd. and Alteria Capital.
