Reliance to Revive Karkinos Healthcare with INR 202 Cr Debt Infusion

Karkinos Healthcare entered insolvency in May 2023 after a petition filed by creditor Labindia Instruments Pvt Ltd.

Reliance Industries Limited, through its wholly owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL), has committed INR 202.16 Cr to resolve the debts of Karkinos Healthcare.

The oncology-focused healthtech platform, founded by former Tata Trusts official R Venkataraman, is currently undergoing insolvency proceedings.

The National Company Law Tribunal (NCLT) approved Reliance’s resolution plan on December 9, following the Corporate Insolvency Resolution Process (CIRP).

Karkinos Healthcare entered insolvency in May 2023 after a petition filed by creditor Labindia Instruments Pvt Ltd.

Reliance Strategic Business Ventures emerged as the sole successful bidder, paving the way for the platform’s financial and operational revival.

Under the resolution plan, Reliance has outlined specific payouts to creditors: INR 37.59 Cr for secured creditors, INR 65.12 Cr for unsecured creditors, and INR 99.45 Cr for operational creditors.

Beyond settling these debts, Reliance has committed an additional INR 150 Cr to rejuvenate Karkinos Healthcare’s operations and meet its working capital requirements.

The implementation of the resolution, expected by February 2025, involves amending Karkinos Healthcare’s Memorandum and Articles of Association (MoA and AoA), which will be filed with the Registrar of Companies.

Founded in 2020, Karkinos Healthcare focuses on early cancer detection and diagnosis, operating a distributed cancer care network in collaboration with hospitals and healthcare institutions.

Its mission is to make affordable cancer care accessible to underserved regions.

Reliance’s association with Karkinos began in December 2021, when it acquired a minority stake via Reliance Digital Health Limited.

The platform has also attracted investments from notable figures, including Ratan Tata, Venu Srinivasan, Kris Gopalakrishnan, Ronnie Screwvala, and Vijay Shekhar Sharma.

Institutional stakeholders include Ewart Investments (a subsidiary of Tata Sons), the Mayo Clinic, and Rakuten Medical, a clinical-stage biotechnology firm based in San Diego.

Karkinos' Ongoing Collaborations

Karkinos collaborates with leading oncology institutions such as Tata Memorial Hospital and the Mayo Clinic and has partnered with approximately 60 hospitals across India by December 2023.

It also works with Rakuten Medical on clinical trials to advance cancer care.

As part of its expansion efforts, the company’s subsidiary, Karkinos Healthcare North East Private Limited (KHNEPL), plans to establish a 150-bed multispecialty cancer hospital in Imphal, Manipur, with an estimated cost of INR 150 Cr.

Despite reporting consolidated revenues of INR 22.17 Cr in FY23—a significant increase from INR 1.06 crore in FY22—Karkinos incurred a net loss of INR 143.08 Cr.

Reliance’s intervention is expected to provide a much-needed lifeline, enabling the company to continue its mission of improving access to quality oncology services in India.

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