The most significant expected project-level outcome is increased access to high-quality, affordable diagnostics in India. At the market level, the investment is expected to contribute to sustaining the development of India’s diagnostics market by augmenting and expanding Redcliffe’s digital-first, direct-to-consumer hub-and-spoke model of diagnostic services. As India's population has rapidly grown, so has its need to deliver high-quality healthcare services. While the performance of India's health system has improved, significant gaps remain in access to and the quality of healthcare. Communicable diseases like dengue fever and chikungunya are still widespread, while the burden of non-communicable diseases continues to rise. Greater investment in healthcare infrastructure, technology, and the workforce is needed. Redcliffe aims to address the gaps in access to diagnostics by providing affordable diagnostic tests through its “digital-first” front end and extensive lab network. The Project will support the Company's expansion by supporting its growth plans through financing the acquisition of regional diagnostic and radiology platforms and capital expenditure. The Project’s efforts to acquire and augment these radiology companies and integrate them into its digital direct-to-consumer diagnostics model are expected to improve access to diagnostics in India, particularly in Tier II and Tier III cities. At the market level, the Project is expected to contribute to increasing the competitiveness of the diagnostics sector in India. By augmenting Redcliffe's business model with greater radiology capabilities through acquisition, the Project will help sustain the development of India's fragmented diagnostics market to consolidate, formalize while being affordable.

IFC’s additionality is both financial and non-financial. Financial additionality is provided through IFC’s own account equity. IFC’s quasi-equity investment of up to US$30 million (INR equivalent) is expected to provide long-term, patient growth capital to enable the Company’s organic and inorganic expansion, while strengthening the Company’s balance sheet, creditworthiness, and institutional governance. IFC’s participation is also expected to have a signaling effect with other institutional capital providers, supporting the Company’s ability to diversify funding sources as it scales and prepares for an IPO. Non-financial additionality is provided through knowledge, innovation and capacity building. Through IFC’s healthcare advisory and active engagement, IFC will work with the Company to (i) assess and implement operational improvement opportunities, including strengthening systems and processes for quality management and service delivery as the platform scales; (ii) support institutionalization of governance, internal controls, and reporting frameworks appropriate for a scaled network; (iii) strengthen the Company’s environmental and social (E&S) capacity and management systems in line with IFC Performance Standards; and (iv) support diligence of identified acquisition targets during appraisal, to ensure that inorganic growth is executed with appropriate operational, governance, and E&S rigor and is aligned with intended development outcomes. IFC’s engagement with the company on PPRR efforts under the GCPH will potentially enable the company to position itself as a thought leader in the industry and access new business opportunities related to advanced disease surveillance and diagnostics.

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This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012), with potential limited adverse environmental or social risks largely reversible and readily addressed through mitigation measures. The key Environmental and Social (E&S) risks associated with the proposed investment relate to: (i) the adequacy and effectiveness of the Company’s Environmental and Social Management System (ESMS), including consistency of implementation across laboratories, collection centers, and field operations; (ii) the strengthening of regulatory compliance and permitting management systems, including tracking of approvals and adherence to applicable requirements; (iii) occupational health and safety, including ongoing compliance with fire and life safety requirements in leased and partner-operated facilities; (iv) the capacity and oversight of E&S resources across a geographically dispersed network, including franchise-operated and hospital-based laboratories and mobile workforce; (v) labour and working conditions, including alignment with applicable requirements on working hours, overtime payments, grievance mechanisms, and awareness of workplace conduct policies; and (vi) management of third-party workers and contractors, including monitoring of working conditions, occupational health and safety, and supply chain compliance.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.