Healthtech platform Redcliffe Lifetech Pvt Ltd, which operates diagnostic centres under the Redcliffe Labs brand, is set to mark its second acquisition in the diagnostics space in over a year, VCCircle has learnt.
The diagnostics service provider, which recently onboarded Denmark's Investment Fund for Developing Countries (IFU), as an investor, plans to acquire Bengaluru-based Celara Diagnostics to expand its presence in the southern market, a person familiar with the matter told VCCircle. The Noida-headquartered company is likely to acquire a controlling stake in Celara Diagnostics for Rs 50-60 crore.
Wodehouse Capital Advisors is the exclusive financial advisor to Celara Diagnostics.
This acquisition marks Redcliffe Labs' ongoing strategy to improve cash flow and profitability through a series of acquisitions, VCCircle reported earlier.
The company has sunk deeper into the red in the last two financial years even as it rapidly grew its topline. Its consolidated net loss widened to Rs 345.6 crore for the fiscal year ended March 31, 2023 from Rs 66.9 crore in FY22, as per VCCEdge, the data research platform of VCCircle. Consolidated net sales jumped to Rs 347 crore from almost Rs 130 crore.
A spokesperson from Redcliffe Labs declined to comment over a phone call.
News website Entrackr first reported the company's acquistion plan on Monday.
In March 2023, Redcliffe Labs acquired Udaipur-based Medicentre Sonography & Clinical Lab. It was followed by the acquisition of Prime Sonography & Diagnostic Centre in Kota, Rajasthan, earlier this year through Medicentre.
Redcliffe Labs, aiming to grow its network to 100 labs by the end of FY25, previously said it was in advanced talks for three to five acquisitions in the coming months.
"We are targeting profitable companies in the diagnostics sector with revenues of Rs 40-50 crore," founder Dheeraj Jain told VCCircle in an earlier interview.
The move comes after Redcliffe's recent $42 million Series C fundraise from investors including LeapFrog Investments, Chiratae Ventures, Growth Spark Ventures, Healthquad, and its new backer IFU. The capital will support Redcliffe’s expansion, focusing on Tier II and III cities across India.
Founded in 2018 by Dheeraj Jain, Redcliffe employs over 3,500 people and offers diagnostic services through a network of 80 labs, with sample collection available in over 220 cities.
Celara Diagnostics
Founded in 2017, Celara Diagnostics provides a wide range of healthcare services, including radiology, pathology, ultrasonography, digital X-ray, mammography, and laboratory services, along with various comprehensive health packages.
The company’s net sales have remained relatively flat over the past two financial years. It reported net sales of Rs 25.2 crore for FY23, a marginally up from Rs 24.3 crore in FY22. However, its net profit rose to Rs 1.5 crore from Rs 0.23 crore during the same period.