Redcliffe Labs buys Bengaluru-based Celara Diagnostics for $7 million: Report

Redcliffe Labs, a growing omnichannel diagnostics service provider, has reportedly made its second acquisition of the year by purchasing Bengaluru-based Celara Diagnostics. 

According to Entrackr's report, The company's board has passed a resolution of approval for the acquisition of shares of Celara Diagnostics Pvt Ltd for an amount not exceeding Rs 60 crore ($7 million).

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Redcliffe Labs, a growing omnichannel diagnostics service provider, has reportedly made its second acquisition of the year by purchasing Bengaluru-based Celara Diagnostics. 

According to Entrackr's report, The company's board has passed a resolution of approval for the acquisition of shares of Celara Diagnostics Pvt Ltd for an amount not exceeding Rs 60 crore ($7 million).

What does Celara Diagnostics do?

Celara Diagnostics offers a broad range of diagnostic services across radiology and pathology, with advanced facilities such as MRI, CT scans, and ultrasonography. The company also provides specialty services in gastroenterology, cardiology, and neurology.

It reported revenue of Rs 25 crore and a profit of Rs 1.5 crore for the financial year 2023 (FY23).

Redcliffe’s acquisition strategy

The acquisition aligns with Redcliffe Labs’ ongoing strategy of acquiring financially stable labs to improve its cash flow and profitability. In March, Redcliffe's founder, Dheeraj Jain, said the company seeks to acquire laboratories with strong financial performance as part of its growth plan. 

Earlier in 2023, Redcliffe-owned Medicentre acquired Prime Sonography & Diagnostic Centre, based in Kota, although financial details of that transaction remain undisclosed.

Funding and investors

The report comes a week after Redcliffe Labs raised $42 million in a Series C funding round led by Denmark’s Investment Fund for Developing Countries (IFU). IFC invested $20 million, followed by LeapFrog Investments with $15 million.

The remaining capital came from the existing investors HealthQuad and Spark Growth Ventures.

Founded by Aditya Kandoi and Dheeraj Jain, Redcliffe Labs claims to own and operate more than 80 state-of-the-art labs, processing tests from 2,000+ collection centres and home collection services powered by 1,000+ phlebotomists across 220+ cities in India.