After private equity funds, now strategic investors are moving in. Aetna has just acquired Indian Health Organization Pvt Ltd, a three-year old startup
As reported in: http://www.moneylife.in/article/booming-interest-in-indian-healthcare-industry/18087.html
The Indian healthcare sector with its super speciality hospitals and extensive network of healthcare service providers is proving to be an attraction for many. So far, private equity players have been showing great interest in the Indian healthcare sector, funding a series of startups. Now, a US-based healthcare benefits company has entered the market. Aetna International today announced the acquisition of Indian Health Organization Pvt Ltd (IHO), a three-year old company started by two Delhi-based entrepreneurs, that offers medical and dental care through an accredited provider network.
This comes close on the heels of a flurry of deals by private equity firms to fund India's burgeoning healthcare needs.
Recently, HDFC PE acquired a 12% stake in an e-hospital, MediAngels, founded by Dr Debraj Shome and Dr Arbinder Singal. Wellspring Healthcare, a preventive healthcare service founded by Dr Gautam Sen and Kaushik Sen received its first round of funding from Narayana Murthy's venture capital firm Catamaran, Anil Ambani Group's Reliance Venture Asset Management and some foreign investors.
Vasan Eye Care, chaired by Dr AM Arun, raised money from venture capital firm Sequoia Capital through three rounds of investments in the last two years, for its chain of 80 eye care centres. Glocal hospital raised equity funding to the tune of Rs15 crore for a minority stake from Elevar Equity and Sequoia Capital to complete the first phase of eight hospitals.
And now, following the IHO takeover, it seems that strategic investors too are interested in the Indian healthcare market. Aetna International's expatriate business is one of the industries largest and most prominent US-based international health benefits providers, supporting more than 400,000 members worldwide. With 80,000 members enlisted as IHO customers, Aetna has a platform to expand its network in the country. Entering the Indian market through an already established network will enable Aetna diversify into a new geography.
Derek Goldberg, Aetna's managing director, South East Asia, said, "India's growing healthcare market presents tremendous opportunity. The out-of-pocket medical spend in India is more than $30 billion annually, which is more than 60% of the total healthcare expenditure in the country. The service offered by IHO targets that direct consumer spending on healthcare by providing access to primary and preventive care."
Visham Sikand, IHO's co-founder and business development head, said, "As a global leader in healthcare, Aetna has the expertise and resources to take IHO's business to the next level. I am excited about the prospects of making quality healthcare and wellness programmes more affordable and accessible for consumers in India."
Aetna says it is convinced that IHO's network and market insight coupled with Aetna's global expertise and resource strength will make a strong statement by making healthcare and wellness programmes more affordable and accessible for consumers in India.