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Reliance Industries Limited, through its wholly-owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL), has committed to infusing ₹202.16 crore to resolve the outstanding debts of Karkinos Healthcare, a technology-driven oncology platform led by R. Venkataraman, a former Tata Trusts official.
This move follows the approval of Karkinos Healthcare’s resolution plan by the National Company Law Tribunal (NCLT) on December 9, as part of the Corporate Insolvency Resolution Process (CIRP), reported Money Control.
In addition to settling debts, Mukesh Ambani led Reliance has pledged ₹150 crore to support Karkinos Healthcare’s operational revival and meet its working capital needs. The resolution plan, approved by the Committee of Creditors (CoC), outlines specific payouts of Rs 37.59 crore to secured creditors, Rs 65.12 crore to unsecured creditors, and Rs 99.45 crore to operational creditors.
The implementation of the resolution, expected by February 2025, will require amendments to Karkinos Healthcare’s Memorandum and Articles of Association (MoA and AoA), to be filed with the Registrar of Companies.
Mukesh Ambani led Reliance’s involvement with Karkinos Healthcare began in December 2021 with the acquisition of a minority stake through its subsidiary, Reliance Digital Health Limited. Founded in 2020, Karkinos focuses on the early detection and diagnosis of cancer, operating a distributed cancer care network in collaboration with hospitals and healthcare institutions to provide affordable oncology services.
The company has attracted investments from prominent individuals like Ratan Tata, Kris Gopalakrishnan, Ronnie Screwvala, and Vijay Shekhar Sharma, alongside institutional stakeholders such as Ewart Investments (a Tata Sons subsidiary), Mayo Clinic, and Rakuten Medical.
By December 2023, Karkinos partnered with approximately 60 hospitals and collaborated with organizations like Tata Memorial Hospital and IITs, enhancing access to services like testing and radiation therapy. It also has plans to build a 150-bed multispecialty cancer hospital in Imphal, Manipur, at an estimated cost of ₹150 crore.
Karkinos Healthcare entered insolvency proceedings in May 2023 after a petition by one of its creditors, Labindia Instruments Pvt Ltd. Reliance Strategic Business Ventures emerged as the sole successful bidder, securing the NCLT’s approval to implement the resolution plan.
Despite reporting consolidated revenues of ₹22.17 crore in FY23, up from ₹1.06 crore in FY22, Karkinos incurred a net loss of ₹143.08 crore, as per Care Ratings. Reliance’s support is expected to steer the company toward financial recovery and sustained growth in the oncology space.
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