MediBuddy, a digital healthcare platform, announced the acquisition of Indian operations of ‘vHealth by Aetna’ in an “all cash deal” for an undisclosed amount.
Over the next six months, vHealth by Aetna’s business will be rebranded into ‘MediBuddy vHealth’.
According to Satish Kannan, Co-Founder and CEO of MediBuddy, acquisitions will be funded through internal accruals and from available cash out of the last round of funds that the company had raised.
‘vHealth’ is a subscription-based primary health-care provider, and currently has around 1.4 million paying subscribers. All the 200-odd employees of the company will be retained.
Strengthen market leadership
“The acquisition will strengthen our market leadership and also help us gain market leadership, while we will get a foothold across some of the segments where we are yet to make a mark,” he said adding that the acquisition comes with the added advantage of bringing on-board the existing subscribers of vHealth.
According to Kannan, the plan is to grow vHealth business 3x over the next three-odd years.
MediBuddy, Kannan said, was currently focussed on growing in India, “at least for the next 18 months”. The company is targeting nearly 2x growth in revenue. For overseas foray — as and when it is firmed up – the company would look at markets in South East Asia and the Middle East.