MFine joins with LifeCell’s diagnostic arm leading to a joint raise of $80 million
- ByStartupStory | July 11, 2022
Due to its limited runway, MFine has been looking for merger and acquisition possibilities for the past few months. The hunt is now finished as the company, which is financed by Moore Strategic Ventures, has declared its intention to merge with LifeCell International’s diagnostic division to form a new company named LifeWell.
LifeWell aspires to develop into a full-stack digital health platform in the diagnostic industry, in contrast to MFine, which was a pure-play marketplace. Importantly, OrbiMed contributed $80 million to a fresh round of funding for the joint venture.
A large-scale layoff at MFine was followed by the merger in two months. In May, the firm let off half of its staff in an effort to reduce expenses and increase the runway. According to a joint press statement from LifeCell and MFine, their user bases total more than six million and are expanding at a rate of more than 100% annually. Over the next four years, LifeCell hopes to serve more than 50 million people through substantial strategic investments and acquisitions.
Since its founding, MFine has funded over $75 million, including a $48 million Series C round that was co-led by Moore and Beenext in September of last year. In its most recent financing, the firm was valued at between $450 and $500 million. In September 2021, a fundraising round headed by healthcare investment company OrbiMed Asia Partners IV netted Chennai-based Lifecell Rs 255 crore ($33.5 million).
Helion Venture Partners, Brand Capital, and the company’s founders are among the investors who have contributed approximately $40 million to the venture. Although Lifecell has raised roughly half of MFine’s total investment, LifeCell is over 20X larger than MFine in terms of income. LifeCell’s main line of business is stem cell banking, which in FY21 produced almost 60% of the operating income or Rs 139 crore.
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