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Medplus puts off Rs 1200 crore fundraising for diagnostic venture

A few weeks ago, shareholders of Medplus Health Services, one of India’s biggest chain of drug stores, approved a proposal to raise ₹1,200 crore to expand a two-year old diagnostics venture.

But the Hyderabad-based company has decided to not raise the money as planned before the pilot project in Hyderabad adds at least 200,000 subscribers and profitability becomes visible.

Medplus Health Services has a market cap of over ₹8,200 crore (almost $1 billion at current exchange rate.

Founded in 2006, and listed on the stock exchanges in December 2021, Medplus has 4,233 pharmacies spread across ten states in the country. Its experiment with diagnostics started in March 2022 with four full-service centres, two relatively smaller ones, and 120 collection points in Hyderabad.

It has taken almost two years for the company to get to 120,000 subscribers for its diagnostics experiment in Hyderabad. CEO Gangadi Madhukar Reddy wants this number to swell by another 80,000 before he takes a call on whether to build on it further. CNBCTV18

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