Alliance Healthcare Group plans to invest S$3.5 million in Jaga-Me giving it a 55-per cent stake in the Singapore-based startup.

It will fund the transaction with S$1.05 million in proceeds from its initial public offering (IPO) and bank loan.

The board decided to acquire Jaga-Me as they look to leverage the startup's mobile health features and its scalable digital platform — an app that offers convenience to consumers in scheduling and paying for the delivery of medical goods and services.

Despite Jaga-Me making S$682,250 loss in 2018, Alliance Healthcare Group asserted the platform's potential earning prospects as a more appropriate valuation than valuing the investment with an asset-based approach.

"We look forward to exploring in-depth synergies with Jaga-Me as we continue to provide differentiated and cost-effective healthcare solutions for diverse medical needs, such as hospitalisation, critical illness care and chronic care," said Barry Thng, chairman and chief executive of Alliance Healthcare Group.