Medall Healthcare looking to go public in a few years

CHENNAI: Peepul Capital-backed Medall Healthcare is working on a plan to take the company public, Peepul Capital top executive and Medall CEO Arjun Ananth told ET in an interaction about the company’s product development and expansion strategies.

“Our desire is to take this company public in 4-5 years,” he said. “It is the thinking that has evolved over the last few months. We see the potential to build this business organically or through acquisitions very rapidly.”

He added that the scope to accelerate the orientation of the business into be a highly customer-centric business was also vast and promising.

In this regard, he said the company was looking at expanding extensively not just in new geographies but also strengthening their footprint in existing markets.

Medall has a significant presence in Southern states and is looking to ‘fill in the white spaces’ in states like Tamil Nadu, Karnataka, Kerala and Andhra Pradesh, while also moving up north.

“We are present in nine states across India. Soon, we will enter our 10th state,” Arjun said. “We are a little shy of Rs 500 crore in revenue and in terms of profit, we are a little shy of Rs 100 crore… Our goal is to try and double our revenue and quadruple our profits (in the next 4-5 years).”

Home diagnostic services are a great opportunity, Arjun said. And to tap the potential of this segment, he said the company was investing significantly in technology that could help not just with backend work but also with helping patients to read and understand their reports better.

Another initiative that the company was looking to focus on was wellness. Not merely a health check but propagating the idea of a ‘health manager’ to help patients to achieve their health goals. He said emphasis would be laid on mental health too.

Arjun took over as CEO after serial entrepreneur and founder of Medall Healthcare, Raju Venkatraman, stepped down from the top spot in November.

Speaking about Peepul Capital’s plans for Medall, Arjun said the Chennai-based PE firm was “committed to the business.”

“Peepul Capital is extremely bullish about the prospects for this business,” he said. “We see the potential to be a game changer in this business.”

Peepul Capital owns an 80% stake in the firm. Raju remains on Medall’s board as the non-executive chairman and continues to hold shares in the firm.

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