Reliance Industries Completes Acquisition of Healthtech Startup Karkinos Healthcare for INR 375 Cr

-Venkat is the Founder of Karkinos Healthcare and currently serves as an advisor to the chairman of Reliance Industries Limited.

-The acquisition of Karkinos by Reliance Industries, through its subsidiary RSBVL, was finalized on December 27, 2024.

-As part of the approved resolution plan, the existing shares held by previous investors were cancelled.

Reliance Industries’ subsidiary Reliance Strategic Business Ventures (RSBVL), has acquired oncology-focused healthtech startup Karkinos healthcare for INR 375 Cr.

The acquisition involved allotment of shares. 

Founded in 2020, Karkinos offers technology-driven solutions for cancer detection, diagnosis, and management. In the fiscal year 2022-23, Karkinos reported a turnover of approximately INR 22 Cr.

Venkat is the Founder of Karkinos Healthcare and currently serves as an advisor to the chairman of Reliance Industries Limited. Before founding Karkinos, Venkat had an extensive career with the Tata Group, where he spent over 15 years in various capacities. His experience and leadership in both the healthcare and corporate sectors have been key to the development of Karkinos and its strategic partnerships.

The acquisition of Karkinos by Reliance Industries, through its subsidiary RSBVL, was finalized on December 27, 2024. The deal involved RSBVL subscribing to INR 10 Cr in equity shares and INR 365 Cr in optionally fully convertible debentures (OFCDs) of Karkinos. 

As part of the approved resolution plan, the existing shares held by previous investors were cancelled. This acquisition is part of Reliance's strategy to expand its health services portfolio, particularly in the oncology sector. 

Previous investors in Karkinos included a mix of prominent entities and individuals. These investors were:

1. Ewart Investments – A subsidiary of Tata Sons.
2. Reliance Digital Health – A subsidiary of Reliance Industries.
3. Mayo Clinic – A renowned healthcare institution.
4. Sundar Raman – Director at Reliance Foundation Youth Sports.
5. Ravi Kant – Former Managing Director of Tata Motors.

Karkinos aims to provide affordable, end-to-end cancer care services while ensuring profitability. By December 2023, the startup had partnered with around 60 hospitals to offer oncology services. Additionally, Karkinos is establishing a 150-bed multispecialty cancer hospital in Imphal, Manipur.

Reliance Industries stated that the acquisition of Karkinos will help expand its health services portfolio, particularly in the oncology sector. The acquisition was completed after the resolution plan received approval from the National Company Law Tribunal (NCLT), Mumbai. 

RIL's Healthcare Bet

Reliance Industries has made several key acquisitions in the healthcare sector in India. For example, it acquired the online pharmacy platform Netmeds in 2020 through its subsidiary Reliance Retail. This acquisition was part of Reliance's strategy to expand its presence in the healthcare and online pharmacy business. Besides, it acquired Strand Life Science in September 2021 through its subsidiary Reliance Strategic Business Ventures Ltd (RSBVL). 

Further, On December 20, 2024, Reliance Digital Health Limited (RDHL), a wholly owned subsidiary of Reliance Industries, entered into definitive agreements to acquire a 45% equity stake in Health Alliance Group Inc. (HAGI) for an aggregate consideration of $10 million. 

HAGI, a US-based healthcare startup was founded in December 2023, specializes in designing technology-driven solutions for underserved populations in the United States, India, and globally. The startup operates at the intersection of healthcare, information technology, and innovation.

Additionally, Reliance Industries acquired CareMax, a chain of healthcare clinics, as part of its broader strategy to strengthen its footprint in the healthcare sector. The acquisition was made through Reliance Retail, which is one of Reliance's key subsidiaries. CareMax operates healthcare clinics that provide a range of services, including primary care, diagnostic services, and specialized treatments.

Though the exact financial details and timeline of the acquisition were not disclosed at the time, it is part of Reliance’s broader plan to diversify into various sectors, including healthcare, digital services, and retail, to better serve Indian consumers.