Orange Health on Wednesday announced that the company has acquired Gurugram-based Rapidx to expand its footprints in the crucial NCR region. The company claims that the current acquisition is a part of Orange Health’s strategy to accelerate growth, expand its reach and consolidate its position in the $10 billion diagnostic sector in India.
According to the diagnostic start-up, it has innovated its supply chain and processes to deliver reports from its NABL accredited and ICMR-approved labs in just 6 hours from the moment sample is taken.
Orange Health claims that the latest acquisition will now enable them to deliver and expand its flagship service – 60-minute sample collection and 6-hour reporting in the northern region of the country at much ease.
While commenting on the acquisition, Dhruv Gupta and Tarun Bhambra, Co-Founders of Orange Health, said that they feel that on-demand and at-home service will be the next leap in the diagnostic sector from the current hyperlocal sample collection centres.
“This requires building an intelligent and robust supply chain and lab operations that not just promises speed but also on-time delivery. With the current acquisition, we aim to further expand our services and continue our mission to provide the fastest, most timely, and most accurate diagnostic services to people in India. We are excited to welcome add a strong team, high-quality reference lab, and experienced leadership that will further enhance our capability of serving the Delhi NCR market with our core offering of 60-minute home collection and 6-hour reporting,” the co-founders said in a statement on Wednesday.
The company claims that Orange Health will leverage Rapidx’s infrastructure and familiarity with Gurugram and Delhi to strengthen its foothold further. The company has already started investments to augment automation in Rapidx’s current lab and is in the process of launching at least more labs in the coming months, it stated.
Under this acquisition agreement, Rapidx’s advanced reference laboratory set up in Flow Cytometry, Immunofluorescence, and ELISA tests will add to Orange Health’s diagnostics services now. Moreover, after this acquisition, Orange Health will now own a Central Referral lab.
According to a recent report by Praxis Global Alliance, the Indian medical diagnostic industry has emerged as a key player in the rapidly growing healthcare sector of the country. The report has revealed that the Indian diagnostics market, now with a size of $10 billion in FY2021, is projected to grow at a compounded annual growth rate (CAGR) of 14% to reach $20 billion by FY26.
According to reports, there have been several crucial acquisitions in the last two years including Rs 350 crore acquisition of the South-based DDRC that made the IHH Healthcare-owned SRL Diagnostics the largest medical lab chain in the country; Dr Lal PathLabs’ Rs 925 crore acquisition of Suburban Diagnostics; the merger of Chennai-based Healyst Wellness Laboratory with Neuberg Ehrlich Laboratory, and Rs 636 crore purchase of Dr Ganesan’s Hitech Diagnostic Centre (Hitech) along with its subsidiary Centralab Healthcare Services (Centralab) by the country’s second-largest diagnostics chain Metropolis Healthcare.