14 February 2024
Apis Growth Fund I investment Star Health lists on Indian Stock Exchanges; Fund LPs benefit from IPO
Star Health lists on Indian Stock Exchanges
Investor Apis Growth Fund I remains Star Health shareholder
Star Health has grown Gross Written Premiums over 5x since the Fund’s initial investment and today insures more than 20 million customers
London, 14th December, 2021: On Friday, the 10th of December 2021, Star Health successfully listed on the Indian Stock Exchanges at a valuation of c. INR 52,000 Cr (US$ 6.9B). Star Health was founded in 2006 and is the largest stand-alone private health insurer in India. The company has the deepest distribution network among health insurers with a presence across all Indian states of the country and has been a key enabler of improving access to quality healthcare at affordable rates for mass-market customers in India.
Apis Growth Fund I (“the Fund”), a private equity fund managed by Apis Partners LLP, a UK-based asset manager that supports growth stage financial services and financial technology businesses, invested in Star Health in 2016. Apis Partners has been a strong supporter of the growth and success of Star Health and is delighted that the Fund will remain a shareholder in the company following the IPO. As part of the IPO, the Fund sold ~ 11% of its stake in the Company and remains committed to supporting Star Health, its exceptional management team and our fellow shareholders in helping guide the company’s future growth.
Over the course of the Fund’s investment, Star Health has grown its market share of the overall health insurance market in India from c. 7% to c. 16%. Furthermore, Star Health’s Gross Written Premiums have increased almost 5x to over INR Cr 10,000 (US$ 1,350M) for the period ending June 2021. Most importantly, the Company now provides over 20 million people (up from 4 million at the time of Apis Growth Fund I’s investment) with access to quality healthcare and the opportunity for families to protect themselves from health emergencies.
Apis Partners’ key focus is on investing our limited partners’ capital to create not only financial returns but also social returns on an investment, maximising ESG and Impact performance. Since the Fund’s investment, the Impact performance has been demonstrated by Star Health’s aforementioned rise in number of lives covered, plus total employees also increasing from 8,100 to 12,800+, reinforcing its place as the leading player in the Indian health insurance sector. In addition, the number of agents has grown 2.5x fold from 181,000+ to 460,000+, and its geographical footprint now in 26 states and 4 UTs, from 22 in 2016.
A standout highlight from an Impact perspective was the scheme run in partnership with Tata Trusts, the philanthropic arms of the Tata group of companies in India. This initiative offered a low cost health insurance scheme (“Swastha Kutumbam”) for one million people across 265 villages of Vijayawada, a city in the Andhra Pradesh state in India. The scheme provided affordable universal health insurance coverage and covered costs related to medicines, diagnostics and post-surgery care. Payment was in the form of a family floater scheme, for which beneficiaries paid a premium of INR 1 (US$ 0.1) per day per person, to gain a cover of INR 100,000 (c. US$ 1,335) per family. The scheme was a progressive step towards addressing the lack of accessible and affordable healthcare in the region, which affects livelihoods and overall community development.
Matteo Stefanel, Co-founder and Managing Partner at Apis Partners, said: “Our investment in Star Health has helped to transform millions of lives, which is something that we as an organisation are incredibly proud of. Star Health’s commitment to putting the customer at the centre of the organisation is what initially attracted us to the company, as well as the opportunity to provide superior returns to our investors.”
Udayan Goyal, Co-founder and Managing Partner at Apis Partners, added: “We are delighted to see Star Health IPO, the success of which is a testament to the growth the company has achieved. It has been a true pleasure working with Mr Jagannathan and his talented team in recent years and to see the organisation grow into the market leading platform you see today.”
About Apis Partners
The Apis Group (“Apis”) is an ESGI-native global private equity and venture capital asset manager that supports growth stage financial services and financial infrastructure businesses by providing them with catalytic growth equity capital. Collectively Apis, through its team of approximately 30 professionals with deep industry expertise, manages or advises on total committed capital from investors (including drawn and invested capital) of US$1.2 billion.
Including its headquarters in London, Apis has representation in seven countries across Europe, North, East and West Africa and South and Southeast Asia. Apis is highly conscious of the developmental impact that the provision of growth capital for financial services and financial infrastructure businesses in growth markets can achieve, and as such, financial inclusion is a core tenet of Apis’ approach and investment mandate. Apis became a signatory to the United Nations backed Principles for Responsible Investment (UNPRI) upon inception of the firm in 2014.
About Star Health
Commencing operations in 2006 as India’s first Standalone Health Insurance provider, Star Health and Allied Insurance Co Ltd is providing sterling services in Health, Personal Accident and Overseas Travel Insurance etc. Our efforts have always been on service excellence and product innovation with a focus on delivering the best to our customers.
Star Health has excellent products to cater everybody, be it individuals, families or corporates. We work directly as well as through various channels like agents, brokers, online etc., Star Health is also prominently into Bancassurance having long standing relationship with various Banks.
Star Health has underwritten a gross written premium of Rs.6865 Cr during the FY 2019-20 and has built up a promising path with an appreciable net worth of Rs.1889 Cr, as on 31st March 2020.
Currently Star Health has 12800+ employees and 640+ branch offices all over India.
 FX as of 7th December, 2021 for all IPO figures.