Bengaluru-based insurtech start-up Medi Assist is all set to take over Raksha Insurance TPA (third-party association). The deal can be the largest one in the TPA space as Medi Assist is eying to buy a 100 per cent stake in the company. 

Through this deal, Medi Assist is targeting to scale its business operations in the country. The company is willing to mark its footprints in tier 2 and tier 3 cities like Lucknow, Indore, Bhopal and Baroda. The deal will also benefit the insurance company to strengthen its retail presence. 

Addressing the latest development, Satish Gidugu, the chief executive officer (CEO) of Medi Assist told The Economic Times (ET), "This is the largest merger and acquisition deal so far in the TPA space. Raksha will add almost 35 per cent or more to our existing retail premiums. They will give us significant access to deeper parts of north, central and some deeper parts of western regions, making it truly a pan-Indian company." 

"This has been a very sought-after acquisition for us for some time. It significantly adds presence, scale and strength to our relationships for us. This will be a game changer sort of transaction not just for us but also in the TPA industry because it's one of the largest TPA M&A that has happened in India." Niraj Didwania, the head of the merger and acquisition of Medi Assist, added. 

Multiple media sources stated that this is going to be Medi Assist's fourth strategic acquisition. Last year, the company took over a 60 per cent stake in Mayfair We Care. Prior to Mayfair, the company also acquired three Indian TPAs. It took over Dedicated Healthcare Services TPA in 2016, Medicare Insurance TPA Service in 2018 and Medvantage Insurance TPA in 2022. The company also bagged Rs 393 crore in revenue in the financial year (FY) 2022.