PC: Business Standard
Redcliffe Labs is changing the ground in India’s health care landscape after recently announcing that it will acquire Celara Diagnostics. The firm had completed its second acquisition in the diagnostics space this year, marking a testament to the commitment behind its two main portfolios-service expansion and market presence.
The board of Redcliffe Labs has cleared the proposal to buy Celara Diagnostics Pvt Ltd’s shares valued at a maximum of Rs 60 crore ($7 million). Headquartered in Bengaluru, Celara Diagnostics enjoys wide repute for its panoramic diagnostic capabilities in radiology and pathology. The company features high-class facilities including MRI, CT scans, ultrasonography, and special services in neurology, cardiology, and gastroenterology. In the financial year 2023, Celara Diagnostics reported revenues of Rs 25 crore and net profit of Rs 1.5 crore. The results for FY24 are eagerly awaited.
Earlier in the year, Redcliffe Labs’ founder Dheeraj Jain outlined the strategy behind acquiring labs with sound financial performance-from streamlining cash flows to improving profitability. The firm had picked up the Kota-based Prime Sonography & Diagnostic Centre earlier, and it now is picking up Celara Diagnostics under this strategy of active expansion.
Significant boosts to Redcliffe Labs come from the recent fundraise of $42 million Series C led by Denmark-based investment firm IFU. The investment is focused on scaling the current operations with additional labs and collection centers, with a special thrust on tier-II and tier-III cities for enhanced accessibility to quality diagnostic services.
To build depth within its leadership team, Redcliffe Labs appointed Ankur Shah, former CFO of Careem, as an independent director and Alka Saxena with health care experience at Home and Dr Lal PathLabs as the new CFO. These strategic appointments bring diverse expertise and nudge Redcliffe Labs to take that growth trajectory forward in the competitive diagnostics market.
The company competes with other similar industry stalwarts such as PharmEasy-owned Thyrocare, Healthians, 1mg, and Dr. Lal PathLabs. In the financial year 2023, Redcliffe Labs reported a revenue of Rs 347 crore, whereas the previous year it had a loss of Rs 345.6 crore. The soon-to-be-reported financial results for FY24 will give an outlook on the road map and growth curve of the company.
Acquisition of Celara Diagnostics and other strategic acquisitions and fundraising coupled with talent acquisition reveal commitment towards innovative growth for the excellence of providing quality health service to many. The company looks forward to further progress and landmarks from this dynamic player as it continues on its expansion journey with Redcliffe Labs.
