Redcliffe Labs Expands into South India with Celara Diagnostics Acquisition

This acquisition will enable Redcliffe Labs to broaden its diagnostic services in Karnataka, particularly in advanced radiology and super-specialized pathology.

Redcliffe Labs, a leading diagnostic service provider in India, has expanded its presence in South India with the acquisition of Celara Diagnostics.

Reportedly, Redcliffe Labs' board has approved the acquisition of Celara Diagnostics for a sum of up to INR 60 Cr ($7 million).

Bengaluru-based Celara Diagnostics offers a wide range of radiology and pathology services, including MRI, CT scans, and ultrasounds, with expertise in neurology, cardiology, and gastroenterology.

Celara Diagnostics operates two high-end diagnostic facilities in Bengaluru: the Basavanagudi Centre and the Shivaji Nagar Centre.

Both centers are equipped with advanced radiology, pathology, and specialized testing services, offering comprehensive diagnostic solutions.

Acquisition Agenda

This acquisition will enable Redcliffe Labs to broaden its diagnostic services in Karnataka, particularly in advanced radiology and super-specialized pathology.

Commenting on the acquisition, Aditya Kandoi, Founder & CEO of Redcliffe Labs, said, "This strategic partnership strengthens our ability to deliver precision-driven results, empowering healthcare providers across the region."

By integrating Celara Diagnostics, Redcliffe aims to improve turnaround times and enhance the overall customer experience.

With this expansion, Redcliffe will now offer over 3,600 routine and specialized tests, including biochemistry, hematology, molecular and genomic testing, microbiology, and infectious disease diagnostics.

Dr Radhesh S, Chief Business and Medical Officer at Celara Diagnostics, said, “By combining Celara's expertise in radiology and pathology with Redcliffe's innovative approach, we are poised to offer accessible and affordable diagnostic services, ultimately improving health outcomes in our community."

Redcliffe Labs' Strategic Expansion Plan

Earlier this year, Dheeraj Jain, founder of Redcliffe Labs, outlined the company’s strategy to acquire financially stable labs to boost cash flow and profitability.

In March, Redcliffe Labs’ subsidiary Medicentre acquired Prime Sonography & Diagnostic Centre in Kota, marking the company’s aggressive expansion in the diagnostics sector.

This acquisition follows Redcliffe Labs' $42 million Series C funding round, led by Denmark’s IFU (Investment Fund for Developing Countries). The funds will be used to open more labs and collection centers, with a focus on expanding into Tier II and III cities across India.

To strengthen its leadership, the company appointed Ankur Shah, former CFO of Careem, as an independent director, and Alka Saxena, formerly with Dr Lal PathLabs, as the new CFO.

Competing with firms like Thyrocare, Healthians, and 1mg, Redcliffe Labs reported revenues of INR 347 Cr in FY23 but posted a loss of INR 345.6 Cr. The FY24 financial results are still pending.

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