LeapFrog Acquires a Majority Stake in Ascent Meditech, India's Specialist Medical Products Company Behind the 'Flamingo' Brand

MUMBAI, India, July 17, 2018 /PRNewswire/ --

Investment will tap into the rapidly growing $100 billion Indian healthcare market 

• Ascent Meditech is the leading Indian medical products company and distributor of niche consumer healthcare products, with a focus on orthopaedics, pain and wound care
• Its flagship brand, Flamingo, is one of the most popular consumer health brands in India
• In 2017, products were sold to seven million customers via 150,000 retail points across the country
• The company currently exports to over 40 countries across Asia, Africa and the Middle East
• The investment by LeapFrog will tap into the rapidly growing $100 billion Indian healthcare market

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 ("Ascent"), the health company behind the 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 orthopaedic products.

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Ascent has built a sophisticated manufacturing, distribution and retail strategy specialising in orthopaedic soft goods, wound care and mobility aids. Over 80% of Ascent products are purchased 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. By the end of the century, the elderly will constitute nearly 34 percent of the total population in the country.^[1] Elderly populations tend to have a higher prevalence of orthopaedic ailments, preferring less invasive solutions to surgery.

The company sold 15 million products to Indians in 2017 via 150,000 retail pharmacy points across 12 Indian states. Ascent products are also exported to countries in Africa, Asia and the Middle East. Specifically tailored to offer value for money, Ascent's products have achieved ISO and CE standards, along with FDA approvals.

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 in the Indian market. 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."

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, utilising LeapFrog-generated consumer insights to develop additional consumer-focused products, and expand 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 the LeapFrog Investments, who share our vision of opening up access to quality and affordable healthcare products and creating a local, trusted brand. Ascent Meditech will benefit greatly from LeapFrog's extensive network, helping the company through the next phase of growth and increasing awareness of the importance of serving the underserved in one of the largest global healthcare markets."

This investment builds on LeapFrog's decade of experience in providing health insurance to emerging consumers, and track record in the Indian market. The company has recently conducted six full and partial exits from key Indian brands including Mahindra Insurance Brokers, Magma Fincorp, and Northern Arc (formerly IFMR Capital). Recent health exits include global mobile health insurance provider BIMA to Allianz X, and West African health insurance provider Express Life, to Prudential PLC.

LeapFrog companies reach a total of 62.8 million people in India, including 55.1 million emerging consumers, enabling distinctive insight into the product needs of this demographic and ongoing product refinement and innovation. Current investments include NeoGrowth, Northern Arc Capital (formerly IFMR Capital), Magma and Fincare.

About LeapFrog Investments 

LeapFrog invests in extraordinary businesses in Africa and Asia. We partner with their leaders to achieve leaps of growth, profitability and impact. LeapFrog companies now operate across 149 markets reaching 130 million people with healthcare and financial services. Over 110 million of those are emerging consumers, often accessing insurance, savings, pensions, credit and healthcare for the first time. LeapFrog companies provide jobs and livelihoods to 120,000 people. These companies have grown on average by nearly 40 per cent per annum since LeapFrog's investment. LeapFrog was recently named by Fortune as one of the top five companies changing the world, alongside Apple and Novartis, becoming the first private equity firm ever to be listed.

About Ascent Meditech 

Ascent is a leading vertically integrated consumer healthcare products business in India, underpinned by a 30-year old brand ('Flamingo') and a wide distribution network. The Company was founded in 1991 by Rajiv Mistry who continues to lead the business as CEO. Ascent is a leader in orthopaedic soft goods, wound care and other healthcare products. The Company sold c.15 million products in FY17, with its products being sold via stockists to over 150,000 retail pharmacies in India.

Ascent's flagship brand of products - "FLAMINGO" - sells in more than 40 countries across the globe, primarily in the Middle East, Africa, and South East Asia.

Notes:

• Founded in 1991, Ascent Meditech is majority owned by Founder Rajiv Mistry, who will remain CEO of the company.
  
• LeapFrog, which has had over $1 billion of capital invested since its inception in 2007, brings a proven 10-year track record as a trusted General Partner to investors in private markets. LeapFrog Investments invests $10-50 million for majority or influential minority stakes in growing companies that have exceptional management teams and are focused on providing services that address the needs of emerging consumers.

[1] UNFPA Report - Caring for Our Elders: Early Responses (2017)

For further information, please contact:
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