Insurtech Startup Medi Assist To Acquire Raksha Insurance To Expand India Presence
Medi Assist, an insurtech startup in India, has announced plans to acquire competitor Raksha Insurance for an undisclosed amount. The move is expected to strengthen Medi Assist’s presence in northern, central, and western India, as well as expand its retail presence and relationships with insurers. The acquisition is expected to increase Medi Assist’s size by over 10% and its retail market share by more than 20%, as well as enable the company to onboard over 3,000 corporate clients. Medi Assist plans to fund the transaction through internal accruals and expects to receive regulatory approval from the Insurance Regulatory and Development Authority of India within the next two months.
The acquisition of Raksha Insurance by Medi Assist is expected to strengthen the healthtech startup’s presence in northern, central and western India and expand its retail market share by more than 20%. With the acquisition, Medi Assist will be able to onboard over 3,000 corporate clients and potentially add over 10% to its size. The acquisition is expected to be funded through internal accruals, and the approval from IRDAI is expected in the next two months. The acquisition is the latest in a series of acquisitions by Medi Assist, which acquired Mayfair We Care in November 2022 and Medvantage Insurance TPA in an undisclosed deal in 2022. Insurtech startups in India are leveraging technology to increase insurance penetration in the country, which remains low at 3.2% for life insurance and 1% for non-life insurance in FY21.