Practo, an online healthcare platform based in Bengaluru has today acquired Insta Health Solutions, a hospital information management company for $12 million in a cash and equity deal.
Founded in 2008 by Ramesh Emani, a former executive of Wipro, Insta provides healthcare applications to improve the efficiency of doctors and hospitals across 15 countries. They help hospitals, clinics, labs and diagnostics chains to digitise and manage their operational financial and clinical by digitalizing their health medical records. Their clientele list includes kidney care services provider DaVita, Skyline Hospital in Manila and Karen Hospital in Kenya. The company has been backed up by Inventus Capital in 2009.
“This is the third of several acquisitions we have been evaluating as we continue our mission to help simplify and digitise health care,” said Shashank N D, founder and CEO of Practo. “It will help hospitals digitize records, remove waiting times and queues, simplifying payments and more.”
Being on the of the earliest entrants in the healthcare technology startup sector, Practo has been on a steady growth track since inception. Till date, it has secured more than $125 million from Sequioa India, Matrix Partners India, Chinese online major Tencent, Belgian investment firm Sofina, Google Capital, Sequoia Capital Global Equities and Russian billionaire Yuri Milner ans is valued more than $500 million.
This acquisition would help Practo to generate additional revenue and enable the company to expand its presence among hospitals. Now, the company generates revenue from Practo Ray, a doctor-facing practice management software sold as a subscription-based, software-as-a-service product and Practo Reach, a sponsored listing service for hospitals and clinics. The doctors are not charged to list on Practo nor does it charge its consumers for searches.
With the acquisition of Insta Health Solutions, Practo gains access to more than 500 hospitals across 15 countries, including Southeast Asia, West Asia and Africa, that uses the company’s information management software. This adds on to the list of the company’s software products for medical establishments that ensures a steady revenue flow.
“Insta is thrilled to join Practo in our quest to enable digital healthcare worldwide. We choose Practo over some other options as we felt we can together offer superior comprehensive and integrated solutions for all participants in the health care ecosystem. Insta will benefit from Practo’s expertise in mobile technology and their geographic and global presence,” said Emani. Insta Health Solutions would continue to function as a separate entity and the company will continue to be led by Emani.