CHA Bio Group will acquire management control of Kakao Healthcare for ₩80 billion ($54.5 million), betting that stem cell expertise and hospital infrastructure can boost returns from mobile health applications.
The stem cell therapeutics developer’s subsidiaries CHA Cares and CHA AI Healthcare will secure a 43% stake in Kakao Healthcare, which operates mobile blood sugar monitoring service PASTA and hospital concierge platform CareChat. Kakao will retain nearly 30% ownership after investing ₩30 billion ($20.4 million) in CHA Biotech shares, while external investors will contribute ₩50 billion ($34 million) by March 2026.
The transaction pairs CHA Bio’s 96 medical facilities across seven countries with Kakao’s consumer technology brand, though the financial rationale remains uncertain. CHA Healthcare posted just ₩8.1 billion ($5.5 million) in operating profit on ₩701 billion ($478 million) in sales for 2023, reflecting thin margins despite aggressive overseas expansion. The unit shelved initial public offering plans after the pandemic.
Kakao Healthcare, founded in 2022, has yet to demonstrate significant revenue from its digital health platforms. The company’s PASTA service requires partnerships with device makers including Dexcom and faces competition in the crowded glucose monitoring market.
CHA Bio has invested heavily in cell therapy production facilities while managing hospital operations from Los Angeles to Singapore, stretching capital across multiple business lines with uneven profitability.
