Medi Assist Insurance TPA, a health insurance-focused, technology-powered third-party administrator (TPA) has announced the acquisition of a 100% stake in Raksha Insurance TPA, one of the largest deals in the TPA sector.
The acquisition will be funded by internal accruals, and completion of the transaction is subject to regulatory approvals and pending customary closing conditions.
Medi Assist offers medical benefits through a combination of in-person, digital, and virtual services to corporates, retail policyholders, and public health schemes.
In FY22, the company generated a revenue of ₹393 crores, while Raksha generated a revenue of ₹67 crores. Raksha TPA ranks sixth in terms of health insurance premiums and will add 10% to Medi Assist in terms of scale and size and 20% in terms of retail market share.
Through this acquisition, Medi Assist TPA aims to grow its retail segment by 30% and expand its presence in North and West India, adding around 3,000 corporates to its client list.
Raksha TPA serviced 3.5 million lives in the last financial year, with operating revenue of around ₹60 crore and premiums under the management of over ₹1,700 crores.
This is not the first acquisition for Medi Assist TPA; the company made its first cross-border acquisition in 2022 of UK-based global service provider ‘Mayfair We Care to service policyholders in over 150 countries. In the past, Medi Assist TPA has acquired three TPAs in India, including Dedicated Healthcare Services TPA (India) in 2016, Medicare Insurance TPA Services in 2018, and Medvantage Insurance TPA in 2022.
The acquisition of Raksha TPA will enable Medi Assist TPA to consolidate its position as a leading TPA in the Indian health insurance sector.
The move also highlights the growing trend of consolidation in the TPA industry, as players seek to expand their market share and service offerings to meet the evolving needs of customers in the fast-growing health insurance sector.