Bessemer Ventures-backed Medi Assist Healthcare Services Ltd. has acquired a majority stake in Mayfair We Care (Mayfair), a UK-based healthcare-focused administration service provider, for an undisclosed cash deal.
The deal is Medi Assist’s second acquisition in less than two months, which is also eyeing an initial public offering (IPO). In September, the company had acquired Mumbai-based Medvantage Insurance, a third-party administrator (TPA) of health insurance.
Like the previous one, this deal is funded out of Medi Assist’s balance sheet, chief executive Satish Gidugu told VCCircle in an interaction.
“With Indian corporates expanding internationally and international travel on the rise, demand for international health insurance is witnessing tremendous growth,” said Gidugu.
The acquisition marks the Bengaluru-headquartered TPA’s foray into the international market, as it expands beyond India, where it has 47 offices in 17 states across the country serving over 9500 corporates in the country.It also will have a presence in niche domains like seafarers, international education market, and international sports teams. Mayfair We Care global healthcare network provides access to over 100,000 members across 150 countries.
“With this new alliance, we aim to provide services beyond Indian borders. The synergies and opportunities from this partnership are immense, and we will continue to be at the forefront of providing integrated benefits administration solutions to Indian and global insurers, as well as to our corporate customers,” he said.
Medi Assist will own a little over 60% of Mayfair, which will continue to be run by the co-founders, who will own a significant minority. Gidugu said the company expects Mayfair to contribute about 10% to its revenue in the next 3-4 years.
Through Mayfair, Medi Assist also gains capabilities in providing customised corporate plans that offer corporates the flexibility to customise healthcare plans in line with specific health care needs of their employees, instead of the conventional “one-size-fits-all” health coverage plans, the company said.
“Medi Assist’s technological capabilities have enabled them to deliver seamless administration services at scale, and achieve leadership in the Indian market,” said Michail Chopra, founder and chief executive of Mayfair.
“We are excited that with this partnership, Mayfair will gain access to a state-of-the-art benefits platform and innovative offerings by Medi Assist to serve insurance partners and corporate customers across the globe.”
Gidugu did not give a timeline for the IPO, but said the company is focused on completing the acquisitions and integrations.
The company is eyeing more acquisitions, if it comes across an attractive deal, and if there are synergies, he said.
Gidugu believes the market is changing. “Either you build scale to survive or you keep losing business,” he said, adding he expects consolidation in the space going forward, with three-four large players dominating the market.
Medi Assist reported a total income of ₹393 crore in the financial year ended March 2022. The company was looking to raise over ₹850 crore, according to its draft red herring prospectus with the Securities and Exchange Board of India in May 2021.
