Investment firm eyes stake in healthcare BPO Infinx
MUMBAI, INDIA — Global investment firm KKR is in talks to acquire a 26% minority stake in Infinx Healthcare, a healthcare business process outsourcing (BPO) company owned by India’s Tandon Group.
The deal, valued at around ₹1,250 crore ($150 million), signals KKR’s confidence in the growth potential of tech-enabled healthcare solutions providers in India.
“We expect this sector (healthcare BPO) to continue growing in India, driven by global demand, and believe that Infinx is well placed to meet this gap through its tech-enabled solutions,” Akshay Tanna, partner and head of India private equity at KKR, told the Economic Times.
“We will draw on our local knowledge and healthcare expertise to support Infinx’s growth and build a healthcare platform, including through organic and inorganic growth strategies.”
Infinx’s capabilities and expansion plans
Based in San Jose, California, Infinx provides comprehensive revenue cycle management (RCM) solutions to medical billing companies, radiology groups, physician practices, and long-term care pharmacies. Its services include medical transcription, eligibility verification, billing, coding across specialties, and accounts receivable management.
With over 4,000 employees and a presence in four major Indian cities, Infinx has served over five million patients and recovered more than $8 billion revenue.
“KKR’s investment is a testament to Infinx’s success over the past decade,” said Jaideep Tandon, chief executive of Infinx Healthcare.
“Success of our customers is central to us at Infinx and with KKR’s support and experience in healthcare and technology we will be able to strengthen our capabilities to deliver innovative, AI-backed solutions to accelerate Infinx’s growth, and help healthcare providers to provide exceptional care to their patients.”
Tandon Group, headquartered in Mumbai and Silicon Valley, has a successful track record as a business incubator. It operates companies like Infinx, Isharya, and Syrma Technology. Its notable exit was the $400 million sale of digital payments firm FreeCharge to Snapdeal in 2015.
KKR has been an active healthcare investor globally, recently acquiring Indian medical devices firm Healthium Medtech for $840 million.
Healthcare outsourcing in India
India has one of the largest healthcare systems as the world’s largest democratic country, with a whopping population of 1.3 billion people.
Health and medicine is a highlight in India as it is a popular destination for medical tourism and has one of the oldest traditional healing practices.
On the other hand, the second-most populous country in Asia is one of the leading BPO hubs for various companies in the world.
India’s edge in the outsourcing industry lies in its cost-efficient services and flexible rates, little-to-no issues with the English language barrier, a large, talented workforce, and its latest and standardized technology.
Meanwhile, the global healthcare BPO market is projected to reach $6.45 billion by 2029, driven by the rapid expansion of RCM services, which involve processes like patient enrollment, medical billing and coding, and claims processing.
According to a report by Maximize Market Research (MMR), Asia Pacific is expected to register the fastest compound annual growth rate (CAGR) of 12.5% as it offers lucrative expansion opportunities for global BPO providers.
