Constellation Alpha Capital, a special purpose acquisition company, is set to acquire Chennai-based Medall Healthcare for ₹1,450 crores ($212 million). This acquisition will help Constellation Alpha to consolidate healthcare services sector in India.
Medall Healthcare, a healthtech startup provides medical diagnostic services in India. It was founded by Mr. Raju Venkatraman in 2008. It aims to provide Radiology and Pathology services to all the sections of the society in the country.
The company has provided more than 25 million diagnostic tests to over 9 million customers in the recent fiscal year. It is the largest integrated diagnostic player in the country with more than 40% market share in South India, with a presence in 8 states across 63 districts. It claims to have over 45,000 doctors in 176 labs across the country.
Medall Healthcare has acquired over 24 companies to establish itself in the Indian healthcare sector and continues to grow as one of the leading diagnostic companies in the country.
Peepul Capital owns 80% stake in Medall Healthcare and has invested around ₹300 crores in the company.
Talking about the investment, Mr. Rajiv Sarman Shukla, Chairman and Chief Executive Officer of Constellation, said, “We are pleased to begin our consolidation strategy with a market leader like Medall. We look forward to growing the company through serial acquisitions and organic levers.”
US-based Constellation Alpha Capital was formed by Mr. Rajiv Sarman Shukla as a public platform for acquiring Indian healthcare businesses. It had raised $143.75 million in its initial public offering (IPO) in June 2017.
The overall Indian healthcare sector is expected to grow twice as fast as the Indian economy until 2025. While the diagnostics alone accounts for nearly $10 billion in annual revenue and it is expected to continue to grow at 20% CAGR until 2025. This potential for growth has prompted many startups to venture into the Indian healthcare sector.
Some prominent players in the Indian healthcare space include NetMeds, MedPlus, PharmEasy, Dr Lal PathLabs, 1mg, among many others.