IT solutions provider Focus Softnet has acquired undisclosed minority stake in Bangalore-based Insta Health Solutions Pvt Ltd, according to the company statement. The deal value has not been disclosed either.
Insta Health Solutions is a healthcare-focused IT company, providing integrated hospital management software (Insta Healthcare Management System) that helps automate the entire process of hospital administration. The investment proceeds will be used by the company to enhance engineering and remote support in India and expand its reach across the Middle East, South-East Asia and Africa during the current financial year, Ramesh Emani, co-Founder and CEO of Insta Health told VCCircle. Currently, Insta Health Solutions has tie-ups with 10-11 hospitals in the Middle East.
The market for integrated hospital management software in India is estimated to be around Rs 500-Rs 600 crore, with a growth of 15 per cent per annum, he added.
“We felt that a comprehensive mid-segment health care solution was missing in the market and found Insta Health Solutions fit for this vertical. Hence, we singed a partnership agreement with them last year. After successfully promoting Insta HMS for a year and from the feedback we received from the market, we felt it should become an integral part of our portfolio. So we decided to invest in the company,” Ali Hyder, CEO of Focus Softnet commented on the deal.
“Focus Softnet has proven track record in marketing to mid-sized organisations. Insta Health wanted a long-term strategic partner in the international market and expects to get majority of the revenues from the global market through this partnership while we concentrate on sales within India,” said Emani.
In December 2009, Insta Health received an undisclosed amount from Mumbai Angels. The company also raised $1 million (Rs 4.5 crore) from Inventus Capital Partners and a clutch of HNIs.
Besides the former Wipro veterans – Ramesh Emani (former president, telecom & production engineering) and S. Muralikrishnan (former vice-president) – other founders of Insta Health are Dr NK Venkataramana (noted neurosurgeon and vice-chairman of BGS Global Hospital in Bangalore), Vasan Subramanian (former managing director of Barracuda Networks India) and KN Venkata Raju (CEO of Bob Tech Solutions Pvt Ltd).