MIT invests INR198 Cr in Medi Assist to Support Digital Health Expansion

The funds will be used to repay subsidiary-level debt of about ₹150 crore and for general corporate purposes amounting to around ₹48 crore, including digital and operational expansion.

Medi Assist Healthcare Services has raised ₹198 crore from the Massachusetts Institute of Technology (MIT) through a preferential allotment of equity shares.

The funds will be used for debt repayment and technology-led business growth.

The Bengaluru-based health benefits administrator issued 37,01,000 equity shares at ₹535 per share.

Of this, MIT subscribed to 28,90,830 shares worth ₹154.66 crore, while 238 Plan Associates LLC, an MIT-affiliated entity, took 8,10,170 shares worth ₹43.34 crore, according to the company’s filings with the stock exchanges.

The preferential issue was approved by Medi Assist’s board on 7 August 2025 and cleared by shareholders at an extraordinary general meeting on 4 September 2025, with 99.15% votes in favour.

The Fund Raise Committee finalised the allotment on 10 October 2025, raising the company’s paid-up capital from ₹35.32 crore to ₹37.17 crore.

Medi Assist said the funds will be used to repay subsidiary-level debt of about ₹150 crore and for general corporate purposes amounting to around ₹48 crore, including digital and operational expansion.

“This investment from MIT unequivocally reaffirms Medi Assist’s mission to spearhead India’s digital health transformation. Technology remains at the core of our operations, enabling us to make healthcare simpler, faster, and more transparent. 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.”

The company has been expanding its presence through acquisitions and partnerships.

In July 2025, Medi Assist completed the acquisition of Paramount Health Services & Insurance TPA, and earlier this year announced a technology partnership with Star Health & Allied Insurance.

Analysts said MIT’s participation reflects growing institutional interest in India’s digital health infrastructure. The pricing of ₹535 per share, close to prevailing market levels, suggests minimal dilution for existing shareholders.

Medi Assist said the funding will strengthen its balance sheet and support investments in automation, fraud analytics, and real-time claims processing across its hospital network.

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