Healthcare unicorn Pristyn Care is in talks to acquire Lybrate
- ByStartupStory | May 23, 2022
Tiger Global-backed healthcare company Pristyn Care is in talks to purchase digital doctor and pathology test platform Lybrate. The two firms have been in talks for the past two months, and Pristyn Care has given a term sheet to acquire Lybrate.
Pristyn Care was founded in 2018 by Harsimarbir Singh, Dr. Vaibhav Kapoor, and Dr. Garima Sawhney. Tiger Global is a common investor in both companies, according to sources, and has played a key role in putting this merger together. Pristyn Care will now be able to offer doctor and pathology consultations as a result of the acquisition.
A share purchase agreement between Pristyn Care, Lybrate Inc, Saurabh Arora, and Rahul Narang also revealed the transaction. Pristyn Care has issued partly paid compulsorily convertible debentures (CCDs) to Saurabh Arora (20,320) and Rahul Narang (20,320), according to the agreement terms obtained from the Registrar of Companies (RoC) (10,160). Lybrate is co-founded by Arora and Narag, and this allotment is valued at roughly Rs 30 crore.
In December, Pristyn Care, based in Gurugram, raised $85 million in a Series E round headed by Sequoia Capital and Tiger Global. The three-year-old company uses a hybrid approach in which it establishes its own clinics while also utilising third-party hospital infrastructure to offer surgery in ten specialties.
Lybrate, which is backed by Ratan Tata, Tiger Global, and Nexus Venture Partners, secured $3 million in 2017 from unnamed investors. Since its debut in 2014, it has raised about $15 million.
Despite the fact that the company hasn’t raised any funds in the last five years, it looks to have prioritised long-term growth, with profits in FY20 and FY21. According to Lybrate’s annual financial records submitted with the RoC, its operating revenue fell 32% to Rs 27.16 crore in FY21 from Rs 39.94 crore in FY20. Despite the reduction in scale, the company made earnings of Rs 3 crore in FY21, up roughly 40% from Rs 2.13 crore the previous FY20.
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