After Acquiring Healthium Medtech, KKR in Talks to Acquire 26% Stake in Healthcare BPO Infinx

With this move, KKR aims to expand Infinx's capabilities by acquiring smaller companies in the same field thereby enhancing its service offerings.

Private equity giant KKR is set to invest approximately $150 million (INR 1,250 Cr) to acquire a 26% stake in Infinx Healthcare, a healthcare BPO owned by the Tandon Group. 

The strategic move aims to expand Infinx's capabilities by acquiring smaller companies in the same field, known as bolt-on acquisitions, thereby enhancing its service offerings.

Commenting on the same, Akshay Tanna, partner and head of India private equity at KKR, said, "We expect this sector (healthcare BPO) to continue growing in India, driven by global demand, and believe that Infinx is well placed to meet this gap through its tech-enabled solutions. We will draw on our local knowledge and healthcare expertise to support Infinx's growth and build a healthcare platform, including through organic and inorganic growth strategies."

Tanna also highlighted India's leading position in providing healthcare revenue cycle management (RCM) solutions due to the local talent pool and quality services available.

Strategic Growth & Acquisitions

Based in San Jose, Infinx Healthcare provides comprehensive RCM solutions, including medical billing, medical coding, and account receivable management services. The company caters to medical billing firms, radiology groups, physician practices, and long-term care pharmacies.

Launched in 2012 as Tandon Information Solutions, Infinx operates in four major Indian cities with an employee base of over 4,000. It also offers services in medical transcription, eligibility and benefit verification, and complete medical billing across various specialties.

Sharing insights, Jaideep Tandon, CEO of Infinx Healthcare, said, "KKR's investment is a testament to Infinx's success over the past decade. The success of our customers is central to us at Infinx. With KKR's support and experience in healthcare and technology, we can strengthen our capabilities to deliver innovative, AI-backed solutions to accelerate Infinx's growth and help healthcare providers deliver exceptional care to their patients."

Tandon Group's Broader Impact

The Tandon Group, founded in 1975, has been a significant player in incubating startups in India. Promoted by chairman Manohar Lal Tandon and his sons Sandeep, Jaideep, and Sudeep, the group has invested in various ventures, including Razorpay, Porter, Spinny, Daily Ninja, and Generico.

Headquartered in Mumbai and Silicon Valley, the group's operating companies include Infinx Healthcare, Isharya, and Syrma Technology. One of its notable exits was the sale of FreeCharge to Snapdeal in 2015 for INR 2,400 Cr, one of India's most significant internet M&A deals.

KKR's Latest Healthcare Investments

KKR has been an active global investor in the healthcare sector. 

Recently, it acquired Healthium Medtech (formerly Sutures India) from Apax Partners for INR 7,000 Cr ($840 million). The acquisition was highly competitive, with KKR outbidding a consortium comprising Mankind Pharma and ChrysCapital.

"Healthium Medtech, renowned as the largest manufacturer of surgical needles globally by volume, presents a lucrative investment opportunity for KKR," said a source familiar with the agreement. 

The formal announcement is expected soon, marking KKR's significant entry into the medical technology sector.