Medi Assist Healthcare Services Ltd, a health insurance third-party administrator, has raised Rs 198 crore (about $22 million) from an endowment fund of the Massachusetts Institute of Technology (MIT).
Medi Assist raised the fresh capital by issuing 3.7 million shares at Rs 535 apiece to MIT and one of its affiliates last week, according to a stock-exchange filing.
According to a separate filing, Medi Assist plans to use Rs 150 crore of the funds raised for investment in a subsidiary for debt prepayment or repayment, and the remaining for general corporate purposes.
The fundraise comes less than two months after Silicon Valley venture capital firm Bessemer Venture Partners exited Medi Assist in August, selling its remaining 15.7% stake for Rs 578 crore ($66 million) with high returns.
Medi Assist’s other public market investors include 360 One, Goldman Sachs, and Danish investment firm Novo Holdings.
Incorporated in 2000, Medi Assist provides a wide range of services including claims management, fraud detection, provider network management, data driven analytics, and cost control. The company works with insurers, healthcare providers, and members.
It provides third-party administrator services through its subsidiary Medi Assist Healthcare TPA. Last year, Medi Assist Healthcare TPA acquired Paramount Health Services & Insurance TPA from Canadian investment firm Fairfax. Its peers in the third-party aggregation segment include MDIndia Health Insurance, and Vidal Health Insurance TPA.​
