LeapFrog Investments (“LeapFrog”), the leading investor in companies that deliver healthcare and financial services for emerging consumers, has acquired a majority stake in Ascent Meditech, a Mumbai-based Consumer health tech company which own and operate market-leading Flamingo brand. The company’s products are currently sold to seven million customers, with a focus on providing high quality and competitively priced orthopaedics to India’s aging population. The financials of the deal was undisclosed however.
Founded in 1991 by Rajiv Mistry, Ascent has built a sophisticated manufacturing, distribution and retail strategy, specializes in wound care, mobility aids and orthopaedic soft goods. Post this deal, Rajiv will stay on as the chief executive officer of the company.
Ascent Meditech has sold 15 million products in 2017 through its extensive network of 150,000 retail pharmacy points across 12 Indian States. Ascent’s flagship brand of products, Flamingo, is sold in more than 44 countries across the globe. Its “FLAMINGO” range of products sells in more than 44 Countries across the globe mainly in Middle East, Africa, & South East Asia.
Over 80% of Ascent products are for treatment for orthopaedic disorders, which affect over 200 million people in India. The share of India’s population over the age of 60 is projected to increase from 8% today to 19% by 2050. Elderly populations tend to have a higher prevalence of orthopaedic ailments, preferring less invasive solutions to surgery.
Felix Olale, Partner and Global Co-Lead for Health Investments at LeapFrog, commented: “The Ascent Meditech team has achieved outstanding growth in the orthopaedic and wound care market, addressing a core need for consumers with high quality products and competitive prices, thus opening up accessibility. We see a huge opportunity for LeapFrog to partner with an outstanding management team to increase production and distribution of Ascent’s quality and trusted products, including the flagship Flamingo brand, in India, Asia, Africa, and the Middle East.”
The investment in Ascent will capitalise on the favourable dynamics in both the domestic and international markets. The $100 billion Indian healthcare market is expected to expand at 12-15% CAGR. Outside of India, the global market for orthopaedics and prosthetics spend is expected to reach $806.7m by 2020, more than double that of 2014, according to a report by Deloitte .
LeapFrog will leverage its deep expertise in healthcare and emerging consumer insights to support Ascent’s growth plans and will create additional value through continuing to strengthen the Flamingo brand. This will be achieved by utilising LeapFrog-generated consumer insights to develop additional consumer-focused products, while also expanding Ascent’s presence in sub-Saharan Africa and Southeast Asia by leveraging LeapFrog’s network in these geographies.
Rajiv Mistry, CEO at Ascent Meditech, commented: “We are delighted to partner with LeapFrog Investments, who share our vision of opening up access to quality and affordable healthcare products and continuing to grow this market leading and trusted brand. Ascent Meditech will benefit greatly from LeapFrog’s extensive network, as the company enters its next phase of growth.”
About LeapFrog Investments, it is a private investment firm that invests in high-growth financial services and healthcare companies in emerging markets. The firm’s investments have an annual growth rate of more than 43% and its companies reach approximately 93.8 million consumers, primarily in Africa and Asia.
This investment builds on LeapFrog’s track record in the Indian market and on LeapFrog’s decade of experience in partnering with emerging market businesses to provide health insurance to emerging consumers. The company has successfully conducted six full and partial exits from key Indian brands including Mahindra Insurance Brokers, Magma Fincorp, and Northern Arc (formerly IFMR Capital) over the last 19 months. Health exits include global mobile health insurance provider BIMA to Allianz X, and West African life and health insurance provider Express Life, to Prudential PLC.
Source – Leapfrog Investments
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