Following this deal, LifeCell’s diagnostics business and MFine will form a new entity called LifeWell
LifeWell has already secured $80 Mn in investment from healthcare investment firm OrbiMed
While financial agreements of the merger were not disclosed, MFine’s last reported valuation was at around $450 Mn-$500 Mn
Digital health platform MFine, which has been facing financial difficulties for months, is set to merge with the diagnostics arm of healthcare and diagnostics solutions provider LifeCell International Private Limited. Following this deal, LifeCell’s diagnostics business and MFine will form a new entity called LifeWell.
In May, Inc42 exclusively reported that MFine had laid off around 75% of its total workforce, affecting around 600 employees.
While financial details of the merger were not disclosed, MFine’s last reported valuation was at around $450 Mn-$500 Mn.
LifeWell has already secured $80 Mn in investment from OrbiMed, a healthcare investment firm, which has about $18 Bn in assets under management, a joint statement said.
“With this joint venture, we see immense possibilities of delivering on-demand healthcare with outstanding consumer experience,” said Prasad Kompalli and Ashutosh Lawania, cofounders of MFine.
LifeCell, founded in 2004, is a stem cell bank and reproductive genetic testing services provider. It claims to run a national network of advanced genetic testing laboratories catering to over 3,000 hospitals across 130 cities, with a primary focus on maternal and newborn health. On the other hand, the 2017-founded MFine offers telemedicine services for primary, secondary and chronic care.
Following the merger, MFine believes it can “scale rapidly across the country”.
It must be noted that the healthtech startup had raised about $97 Mn in total funding from several investors, including Moore Strategic Ventures, BEENEXT, and Prime Venture Partners, before its fund crunch led to mass layoffs and now, a merger.
MFine will continue to be the app platform and the consumer brand delivering digital healthcare services and tools following the merger. MFine app will continue to provide tele-consultations, care plans, diagnostic tests, e-pharmacy, corporate subscriptions, and other related services. The capital raised will also be used for strategic investments in insurance-tech and other partners to boost MFine’s corporate and insurance channels, the statement said.
LifeCell’s diagnostics business and MFine together have a combined user base of over 6 Mn, growing more than 100% year over year. With significant strategic investments and acquisitions in the pipeline, LifeWell expects to serve more than 50 Mn users over the next four years.
As per a 2021 NITI Aayog report, the market size for telemedicine in India was projected to increase to $5.5 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31% during 2020-25.
