Venture Capital firm Sequoia Capital, is planning to invest around Rs 165 crore in Chennai-based country’s first standalone health insurer Star Health and Allied Insurance Company (Star Health). It may be noted recently ICICI Venture had also infused Rs 100 crore into the company.
V Jagannathan, chairman and managing director, Star Health said that recently ICICI Venture invested Rs 100 crore into the company and would infuse another Rs 20 crore in the coming months.
The company is also planning to raise around Rs 165 crore from Sequoia Capital and it would come in 15 days. This would take up the total paid up capital of the company to Rs 365 crore.
While refusing to disclose the quantum of shareholding that will be diluted to these two investors, Jagannathan said, the capital increase would help the company to reach its target of Rs 1,350 crore premium during the current fiscal, as compared to Rs 950 crore, a year ago an increase of around 42 per cent.
The company expects around Rs 900 crore, from the two state governments including Tamil Nadu and Andhra Pradesh. It may be noted the company has bagged contracts from these two state governments to implement state sponsored health insurance schemes, which would cover people who are living below poverty line.
As part of the expansion plan, the company is planning to increase number of branches to 200 from the current 160, said Jagannathan.