LifeWell, the result of the merger between mFine and LifeCell International’s diagnostic business, is set to raise Rs 184 crore (approximately $22 million) in a pre-IPO round led by existing investor OrbiMed. This marks the Chennai-based company’s first significant investment in 2024 and sets the stage for its ambitious expansion plans.
The recent move comes as LifeWell’s board passed a special resolution to issue 43,18,865 compulsory convertible preference shares at Rs 426.71 each, per regulatory filings accessed from the Registrar of Companies (RoC). OrbiMed is contributing Rs 150 crore, while Cellution Biostorage is investing Rs 30 crore. Notable individuals, including S. Vinod Kumar, Sanjay Singh Kumar Jain, and Siremal Kothjari, also participated in this funding round.
The allocation of funds is being done on a partly paid-up capital basis, indicating that 25% of the new round has already been injected, with the remainder to follow as determined by the board.
The July 2022 announcement of the merger between mFine and LifeCell’s diagnostic business brought together two significant players in the healthcare industry. At the time, the combined user base was over six million. With the infusion of $80 million from OrbiMed, the merged entity set ambitious targets, aiming to serve more than 50 million users by 2026.
However, this merger followed a period of turbulence for mFine, marked by significant layoffs affecting over half of its workforce. Despite this, the consolidation represented a strategic move within the digital healthcare space, joining a list of notable mergers and acquisitions since January 2020.
Other consolidations in the industry include DocsApp’s merger with MediBuddy, Pristyn Care’s acquisition of Lybrate, and the acquisitions of ThyroCare, Medlife, and Aknamed by PharmEasy. Additionally, Reliance’s takeover of NetMeds underscored the consolidation trend within the healthcare sector.
LifeWell’s latest funding round reflects investor confidence in the merged entity and signals its readiness for expansion and innovation in the evolving healthcare landscape. With OrbiMed leading the charge, LifeWell is poised to leverage its resources to drive growth, enhance its service offerings, and achieve its goals in the coming years.
