The Bengaluru-based diagnostic startup, Celera Diagnostics is expected to get acquired for $7 million by the healthtech firm Redcliffe Labs. The company passed a resolution of approval to buy its stakes in the startup through an all-cash transaction deal. This investment will enable both companies to combine resources and improve the diagnostic solutions while increasing their client base.
Celera Diagnostics is a developer of diagnostic testing and personalized medicines. The company develops and manufactures diagnostic products to detect, monitor, characterize, and select the best treatment for the disease. The diagnostic firm also provides its services in radiology and pathology. The Redcliffe Lab’s board passed a resolution to acquire shares worth Rs 60 crore in the startup. Celera Diagnostics provides services including MRI, ultrasonography, CT scans, and other specialty services in neurology, and gastroenterology.
The startup already has a strong market presence in the health tech sector and expects to close the deal this year. The company plans to businesses while bringing their technologies, clients, and innovative diagnostic solutions together. The acquisition will help Redcliffe Labs enhance its capability by integrating Celera’s clients, network, and solutions. Redcliffe Labs is an online platform that allows users to book home-based diagnostic tests and lab services. The company worker will collect the sample from home and based on reports the doctor will offer consultation service for personalized medicines.
The startup secured around 113 million USD across three funding rounds since its inception, including $42 million raised from IFU and others during its series C funding round. After this acquisition, the companies will have increased resources, more innovative diagnostic solutions, and a larger workforce. Redcliffe Labs faces competition from other diagnostic service platforms such as Dr Lal PathLabs, Orange Health, and Metropolis India. Redcliffe Labs acquired Celera Diagnostics to strengthen its position in the health tech and diagnostic testing sector while offering innovative solutions.
Entrackr reported that Celera Diagnostics reported a revenue of Rs 25 crore in FY23. However, the profit was around Rs 1.5 crore in the same duration. Redcliffe Las recently acquired the Prime Sonography and Diagnostic Center. The founder of Redcliffe, Dheeraj Jain mentioned that the company aims to acquire diagnostic labs with strong financial growth to boost cash flow and profitability. The company plans to maintain its profits by minimizing its losses and acquiring profitable companies.
Conclusion :
Redcliffe Labs announced its plans to acquire the diagnostic testing lab Celara Diagnostics for Rs 60 crore. The acquisition was a part of the firm’s plan to strengthen its presence in the health tech sector. This investment is an initiative to merge the companies to introduce more innovative diagnostic solutions and maintain profitability.
The health tech firm is focused on acquiring labs with strong financial performance to boost cash flow and profitability. This acquisition will enable Redcliffe Labs to strengthen its market presence in the diagnostic market and enhance its services. The development came just after Redcliffe Lab secured $42 million during its series C funding round from the investment firm IFU.
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