Diagnostics chain Metropolis Healthcare is planning to raise over USD 300 million, and Walmart-owned retailer Flipkart, healthcare chain Apollo Hospitals Enterprise and Amazon are in talks to buy a significant minority stake in the company, according to a Bloomberg report.
“Metropolis, traded in Mumbai with a market value of USD 1.1 billion — about half what it was at the start of the year — tapped Barclays as an adviser, (sources) said. A deal would likely include a sale of primary shares as well as secondary shares by existing investors, including the managing director, that could take the deal size over $300 million,” the report said.
It added that Flipkart and Apollo Hospitals Enterprise have signed non-disclosure agreements with Metropolis, while Amazon.com Inc has held preliminary discussions. Apart from these, KKR & Co, TPG, and Barings are also interested in the deal.
Metropolis laboratories cater to various diagnostic needs of customers in 20 states and 61 cities, according to its website. Its broad spectrum of services offers around 3,500 clinical laboratory tests and 530 profiles. Various test combinations, specific to a disease or disorder and wellness profiles used for health and fitness screening form a part of the company’s service profile.
Metropolis has invested in a variety of specialized tests and also adopted several advanced tests and technologies introduced in the global market. As on date, the Company offers 2,799 specialized tests. One of the prime reasons behind the Company’s leading position in the diagnostics industry is its track record of introducing specialized tests.
The company owns a chain of diagnostic centres across India, South Asia, Africa and the Middle East. Over the years, Metropolis has carved a niche for itself. Metropolis plays a pivotal role in raising the bar of diagnostic accuracy, technological equipment, customer experience and research-driven empathetic service in the industry, according to its website.
Flipkart, which is owned by Walmart, recently said its ‘Buy Now, Pay Later’ (BNPL) business had doubled its user base. In just seven months, Flipkart Pay Later has surpassed six million users.
Amazon recently acquired homegrown women-focused social commerce startup GlowRoad for an undisclosed sum. In a statement, the company had said the acquisition will help it meet the commitment to digitise 10 million local Indian businesses by 2025.
“Amazon continues to explore new ways to digitize India and delight customers, micro- entrepreneurs and sellers and bringing GlowRoad onboard is a key step in this direction… Together with GlowRoad, Amazon will help accelerate entrepreneurship among millions of creators, homemakers, students, and small sellers from across the country,” Amazon’s spokesperson had said.
Flipkart last month made an investment of $116 million in India’s top fashion retailer Myntra. Flipkart acquired Myntra in 2014 for Rs 2,000 crore. According to the report, the investment was made on March 25. On April 6, Flipkart also entered the digital health business and launched Flipkart Health+, to offer medicines as well as other healthcare products and services.
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