New Delhi, Oct. 14 -- Massachusetts Institute of Technology(MIT) and its affiliate 238 Plan Associates have invested $22 million (around Rs 195 crore) in Medi Assist Healthcare Services, which had earned blockbuster returns for Silicon Valley venture capital firm Bessemer Venture Partners.

MIT and its associate's aggregate investment was secured through a preferential allotment on a private placement basis.

Medi Assist said in a press note that it has issued 3.7 million fully paid-up shares at an issue price of Rs 535 per share. According to an exchange filing, Medi Assist plans to use Rs 150 crore of the funds raised for investment in a subsidiary for debt prepayment or repayment, and the remaning for general corporate purposes.

Last year, the company's subsidiary Medi Assist TPA acquired of Fairfax-owned Paramount Health Services & Insurance TPA.

Incorporated in 2000, Medi Assist provides a wide range of services including claims management, fraud detection, provider network management, data driven analytics, and cost control. The company works with insurers, healthcare providers, and members. Medi Assist counts entities such as Enam Holdings, and Goldman Sachs as its investors. Bessemer exited Medi Assist this August, after selling its remaining 15.7% stake for Rs 578 crore ($66 million), generating an annualised return of 40-45% in rupee terms.

The company provides third-party aggregator services in India, through its subsidiary Medi Assist Healthcare TPA.

The company's peers in the third party aggregation segment includes MDIndia Health Insurance, and Vidal Health Insurance TPA among others.

"We are steadfast in our commitment to accelerate innovation in AI-led health benefit solutions that improve member experience and payer outcomes elevating healthcare access to an unprecedented level for millions of people," Satish V N Gidugu, chief executive officer, Medi Assist said in a press note.

The revenue of Medi Assist rose to Rs 723 crore in FY25 from Rs 635 crore a year ago. But, the PAT margin fell to 12.3% in FY25 from 14.5% a year ago.

Published by HT Digital Content Services with permission from VC Circle.