Healthtech platform Redcliffe Lifetech Pvt Ltd has acquired a diagnostic lab chain that caters particularly to premium-priced health services, in a bid to expand the offerings on its existing platform, two people aware of the development told VCCircle.
Redcliffe, which counts venture capital firm Chiratae Ventures and impact investor LeapFrog Investments among its backers, has acquired Udaipur-based Medicentre Sonography & Clinical Lab for an undisclosed sum, the people said.
The deal marks the first inorganic expansion bet by Redcliffe, which operates diagnostic labs across many cities in India.
Redcliffe’s current offerings include wide-ranged diagnostic testing while Medicentre offers premium-priced category testing, including 3D/4D sonography, CT scan, MRI, Neuro lab, and digital radiography services.
The addition of these services, generally priced at a premium versus those available at Redcliffe currently, will help the latter offer a wider range of services under its platform and tap into a larger market.
Founded over 15 years ago, Medicentre Sonography has five branches in Udaipur. It is led by Dr. Manish Seth, and has about 11 other healthcare professionals in the core team.
Singhi Advisors was the exclusive financial advisor on the transaction, one of the persons cited above said.
Emails sent to Redcliffe Labs and Medicentre did not elicit a response.
The preventive healthcare segment has recorded some consolidation activity lately, with Goa-based diagnostics chain Molbio Diagnostics Pvt. Ltd acquiring a 70% stake in Bengaluru-based Prognosys Medical Systems for an undisclosed sum in February.
In a similar move, Accel-backed healthtech startup Orange Health acquired Gurugram-based diagnostic lab Rapidx for an undisclosed sum in August last year.
Pathology chain Metropolis Healthcare Ltd has also been actively acquiring assets. Some of its acquisitions include Centralab Healthcare, Sanjeevani Pathology Laboratory, Wellness Laboratories Ltd.
Separately, Redcliffe is looking to raise its Series C funding round, with likely participation from its existing investors to fuel its expansion plans, the person cited above said.
Redcliffe raised its Series B funding round in May last year, securing about $61 million led by LeapFrog Investments. Other investors including Healthquad, Schroders, LC Nueva, Growth Spark Ventures participated along with existing stakeholders Chiratae Ventures and Alkemi Venture Partners.
The diagnostic lab chain was founded in 2018 by Dheeraj Jain and is headquartered in Noida. With a team size of over 3,500, it offers diagnostics services through its network of 73 labs, with sample collection available across 220 cities.
The omnichannel healthtech platform also added an IVF (in-vitro fertilization) vertical to its range of offerings under the brand ‘Crysta’ in February 2021, and currently has over 25 fertility centres across 18 cities in India.
According to VCCircle’s data platform VCCEdge, Redcliffe clocked Rs 129.8 crore in total revenue from operations in financial year 2021-22, with a net loss of about Rs 67 crore.
