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Ambit Pragma invests in Vidal Healthcare
Vidal Healthcare

Mid-market private equity firm Ambit Pragma Ventures Pvt. Ltd said on Tuesday it has invested in health management company Vidal Healthcare Services Pvt. Ltd.

"The capital raise will enable us to strengthen our presence in existing markets and expand our business prospects further," said Girish Rao, chairman and managing director, Vidal Health, in a statement.

The PE firm didn’t disclose the amount. It typically invests between Rs 30 crore and Rs 70 crore. The Mint newspaper reported earlier in the day that Ambit invested about $10 million (Rs 67 crore) for a significant minority stake.

Vidal Health, which was founded in 2010, provides health and wellness solutions to corporate houses in India. The company recently expanded internationally through a joint venture in the UAE to cater to the health insurance administration needs of insurance companies in the Middle East, the statement said. It also has a wholly-owned third-party administrator Vidal Health TPA Pvt Ltd.

“As the healthcare industry gets organised across the value chain, institutional and consumer demand for management of care and payments will only escalate," said Rajeev Agrawal, managing partner, Ambit Pragma.

The PE firm said that the market for benefits administration and care management in India was about Rs 2,500 crore in FY16 and it is estimated to grow at 25% year on year. The market opportunity in the UAE is estimated at $225 million, and it has many similarities and dynamics as the Indian market, Ambit said.

Ambit Pragma is investing out of its $150 million second fund called Ambit Pragma Fund II that it raised in 2013. The company invests in sectors including media and entertainment, logistics, consumer packaged goods and healthcare, according to its website.

In August, the private equity firm invested an undisclosed amount in Prime Focus Technology, a subsidiary of media services company Prime Focus.

Last year, VCCircle reported that the PE firm had made its first exit by selling its stake in Spear Logistics to French firm FM Logistic.

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