Mumbai: Health insurer Star Health and Allied Insurance Co. Ltd on Wednesday said two private equity funds—Apis Growth Fund I, a private equity fund managed by Apis Partners LLP, and India Advantage Fund Series 4, a private equity fund managed by ICICI Venture—have acquired a significant minority stake in the company. The company did not disclose the size or financial details of the deal.

Star Health, founded in 2006, offers retail health insurance services. ICICI Venture is an existing shareholder in Star Health. Other investors include Sequoia Capital, Tata Capital Growth Fund and Oman Insurance Company.

Apis Partners, a private equity asset manager focused on financial services in the growth markets of Africa and Asia, will join the company’s board that includes Sequoia Capital and Tata Capital Growth Fund, a Star Health statement said.

“Our relationship with Apis Partners and ICICI Venture will enable us to further enhance the platform we have built as one of India’s leading health insurance providers in a very exciting time for the industry and our business. We look forward to benefiting from their knowledge of the impact of financial technology on similar businesses," said V. Jagannathan, chairman-cum-managing director of Star Health.

“Star Health is India’s first and leading stand-alone health insurance company in a country where less than 3% of the population has purchased individual and family health insurance," said Matteo Stefanel, Apis Partners’ co-founder and managing partner.

“Star Health has demonstrated significant growth under Jagannathan’s leadership and we are pleased to participate in the capital raise, alongside Apis Partners, to fund the growth plans of the company in a sector that is witnessing a huge growth momentum," said Prashant Purker, managing director and chief executive officer of ICICI Venture.

In 2010, ICICI Venture had invested 120 crore in Star Health for a minority stake.

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