20 March 2023
Apis Partners announces investment in Star Health with ICICI Venture
Apis Partners’ inaugural PE Fund, Apis Growth Fund I, and ICICI Venture’s new PE Fund, India Advantage Fund Series 4, acquire a minority stake in Star Health. Star Health is a leading provider of retail health insurance in India.
This investment demonstrates Apis Partners’ and ICICI Venture’s commitment to the expansion of formal financial services with social benefits
Apis Partners LLP (“Apis”), a private equity asset manager focused on financial services in the growth markets of Africa and Asia, and Star Health and Allied Insurance Company Limited (“Star Health” and the “Company”), one of India’s leading health insurance providers, today announced that a minority stake in the company has been acquired by both Apis Growth Fund I and India Advantage Fund Series 4, a private equity fund managed by ICICI Venture, in a deal syndicated by MAPE Advisory Group, a leading Indian investment bank.
Star Health, founded in 2006, is a leader in the retail health insurance segment in India and is actively utilising technology to drive operational efficiencies and expand distribution through digital channels. ICICI Venture is a specialist alternative assets manager based in India. The firm is a wholly owned subsidiary of ICICI Bank, the largest private sector financial services group in India. Apis Partners joins on the board of directors a distinguished roster of existing shareholders, including Sequoia Capital and Tata Capital Growth Fund.
Commenting on the investment, Mr. V. Jagannathan, Chairman & Managing Director of Star Health said “this investment demonstrates the potential of our Company and the strength of our business. Our relationship with Apis Partners and ICICI Venture will enable us to further enhance the platform we have built as one of India’s leading health insurance providers, in a very exciting time for the industry and our business. We look forward to benefiting from their knowledge of the impact of financial technology on similar businesses.”
“Star Health is India’s first and leading stand-alone health insurance company in a country where less than 3% of the population have purchased individual and family health insurance.” said Apis Partners Co-Founder and Managing Partner, Mr. Matteo Stefanel. “Star Health has consistently demonstrated its strength in the Indian health insurance market and has relentlessly focused on putting the customer at the center of the organization, leveraging technological infrastructure, international best practice and true product innovation. We look forward to working with Star Health’s management team in cementing the Company’s leading position in the market.”
Mr. Udayan Goyal, Apis Partners Co-Founder and Managing Partner, added “Star Health has achieved strong growth in recent years, and we believe that the sector is poised for enhanced growth due to powerful demographics and significant increases in discretionary incomes. The management of Star Health has built a strong platform and excellent economics led by Mr. Jagannathan, with over 40 years of experience in the insurance sector. We are delighted to be supporting the Company’s growth.”
Mr. Prashant Purker, Managing Director & CEO of ICICI Venture said, “Star Health has demonstrated significant growth under Mr. Jagannathan’s leadership and we are pleased to participate in the capital raise, alongside Apis Partners, to fund the growth plans of the company in a sector that is witnessing a huge growth momentum.”
About Star Health
Founded in 2006, Chennai based Star Health (www.starhealth.in) is one of India’s leading health insurance providers and is India’s first and largest stand-alone business in the retail health insurance segment. Star Health provides over 3.7 million customers with health insurance, overseas medical cover and personal accident cover. The Company has a pan–India presence with more than 300 branch offices and a network of more than 7,000 hospitals. For the financial year ending March 2016, Gross Premium Income for the Company crossed INR 2,000 Cr (US$ 300 million). The Company is a pioneer of several innovations and industry firsts and has been consistently recognised as a leader in the health insurance market. The Company has a vast bouquet of products, including affordable products for the common man, contributing to all sections of society.
About ICICI Venture
ICICI Venture (www.iciciventure.com) is a specialist alternative assets manager based in India. The company is a wholly owned subsidiary of ICICI Bank (www.icicibank.com), the largest private sector financial services group in India. ICICI Venture has been at the forefront of driving entrepreneurship in India for over two decades, both as a partner and capital provider for Indian companies. ICICI Venture continues to remain committed to this mission. The company is widely regarded as a prime mover in the Indian alternative assets industry, having established a successful track record of investing and nurturing companies across various sectors and across multiple economic cycles. The company has a presence in four verticals currently – Private Equity, Real Estate, Special Situations (in a strategic alliance with Apollo Global Management, US) and Infrastructure.
About MAPE Advisory Group
MAPE Advisory Group (www.mapegroup.com) is a leading Indian investment bank focused on M&A, private equity and debt syndication. Founded by senior investment bankers in 2001, MAPE has executed over 140 transactions with a total deal size of more than US$ 5 billion, in sectors such as Technology, Engineering, Pharma, Real Estate, Consumer Goods and Financial Services, and also has a strong cross-border practice. MAPE’s marquee client base includes names such as TATAs, Godrej, Mahindra & Mahindra, Dr. Reddy’s Labs, Wipro, Larsen and Toubro, Shriram Group, Murugappa Group, CRISIL and Karvy.
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