Bajaj Finserv Arm Acquires Vidal Healthcare Services in a Deal Worth INR 325 Cr

With this strategic acquisition, Bajaj Finserv aims to expand BFS-Health's operations to offer OPD wellness, and hospitalisation benefits to customers.

Bajaj Finserv's wholly-owned subsidiary Bajaj Finserv Health has acquired a 100% equity stake in Vidal Healthcare Services (VHC) Private Limited for an enterprise value of INR 325 Cr.

Bajaj Finserv Health is a digital-first health tech company that aims to transform the healthcare sector in India. It has an extensive network covering over 1,00,000 doctors, 5,500 lab touch points and 2,100 hospitals.

As per the agreement deal, the two wholly owned subsidiaries of VHC, Vidal Health Insurance (VHI) TPA Pvt Ltd and VH Medcare Private Limited (VHMPL), would also become indirect subsidiaries of Bajaj Finserv Health.

While the VHC and the VHMPL both belong to the healthcare sector, the associated subsidiary, VHI-TPA, is a licensed third-party administrator in the field.

Reportedly, the acquisition deal is expected to close by March this year.

Sharing thoughts, Devang Mody, CEO, BFS-Health, said, "Vidal Health brings deep domain knowledge and vast experience in healthcare administration in India. This, combined with Bajaj Finserv Health's superior digital experience and data management prowess, enables the company to be uniquely placed to lead the healthcare transformation that is underway in India."

What the Acquisition Deal Entails

With this strategic acquisition, Bajaj Finserv aims to expand BFS-Health's operations to offer OPD (outpatient department), wellness, as well as hospitalisation benefits to customers.

The acquisition is expected to expand Bajaj Finserv's capabilities in the healthcare space, empowering it to service consumer needs for hospitalisation, one of the largest healthcare spending categories.

Moreover, BFS-Health would indirectly acquire a 21.3% equity stake in IntentHealth Technologies Private Limited, which is an associate of VHC.

The Bengaluru-based Vidal Health boasts an expansive network across India, operating at 800 locations. Further, the company logged a consolidated revenue from operations of INR 227 Cr in the previous financial year 22-23.

Founded in 2002 by Girish Rao, Vidal Healthcare Services is a health services management company that provides third-party administration services, wellness products, programs, and a connected healthcare management ecosystem based on technology and innovation.

The company aims to facilitate healthcare access and administration by offering claims processing, customer engagement, data management, and advisory services.

Bajaj Finserv, on the other hand, is an Indian non-banking financial services company that was established in 2007 by Jamnalal Bajaj. The company focuses on lending, asset management, wealth management, and insurance.

Bajaj Finserv’s healthcare arm, Bajaj Finserv Health aims to provide quality and affordable healthcare to customers. They introduced Aarogya Care which offers a wide range of personalised, preventive, and prepaid healthcare packages. Based on a mobile-first approach, Aarogya Care integrates the various complementary components of the health ecosystem to provide ease of access to quality and affordable healthcare, anytime, anywhere.

Recent Acquisitions In the Healthcare Space

Last month, Mumbai-based Vijaya Diagnostic Acquired PH Diagnostic for INR 134.65 Cr. As part of the acquisition, Vijaya Diagnostic Centre invested an additional INR 12.85 Cr, through equity or loan infusion, to address existing debts. Post-completion, PH Diagnostic Centre will function as a wholly-owned subsidiary of Vijaya Diagnostic Centre.

In the same vein, CareStack, a cloud-based dental practice management platform, acquired Waybeo, an AI startup based in Kerala. This strategic move aims to enhance patient-practitioner communication within the healthcare sector. The acquisition, although undisclosed in financial terms, brings together Waybeo's technological expertise and CareStack's extensive market reach.

Recently, global private equity major General Atlantic acquired around 70% stake in Ujala Cygnus Healthcare Services, a multi-speciality hospital chain based in Delhi and owned by media group Amar Ujala.

The deal, which values the chain at about INR 1600 Cr, includes the acquisition of a 51% stake held by existing investors Eight Roads Venture India, Evolvence India Fund, and Somerset Indus Healthcare Fund. General Atlantic is also expected to acquire a small minority stake from the promoters, along with a primary stake.