Uttar Pradesh based healthcare chain, Regency Healthcare raised approximately US$ 14 million from a consortium of leading global investors, IFC, Healthquad and KOIS. The healthcare chain will utilize this corpus to fund its expansion in the state and offer quality healthcare services at an affordable price. This is possibly the first investment by any private equity fund in a UP based company.
Regency Healthcare is promoted and conceptualized by Dr. Atul and Dr. Rashmi Kapoor. It currently manages 500 beds across 5 facilities in Kanpur and is planning to expand to 1500 beds and 10 facilities across Uttar Pradesh. This March Regency commenced operations of a 125 beds dedicated Oncology Hospital in Sarvodaya Nagar in a Joint Venture with Healthcare Global and will commence a 125 bed multi-specialty Hospital in Govind Nagar in April. Regency has two strategic Joint Ventures with Fresenius Medical Care, Germany for setting up a dialysis chain and with HCG (Healthcare Global) for setting up Oncology hospitals in the state.
Dr. Atul Kapoor, Chairman and Managing Director, Regency Healthcare, said, “The healthcare sector in Uttar Pradesh has received a shot in the arm with this investment and our effort to grow quality healthcare business in the state of Uttar Pradesh has received a much-needed boost. Regency has a clear plan to grow to 1500 beds and consolidate its position as a leader and preferred healthcare provider to patients across the state of Uttar Pradesh.”
He added, “Over the course of the next two years, we plan to invest in excess of INR 350 Cr to add new hospitals and clinics across important locations in Central and Eastern UP, besides equipping them with advanced clinical and technological capabilities. We also plan to add 15 new dialysis treatment centres, for which we have an exclusive joint venture with Fresenius, world’s leading kidney care player.”
“IFC supports Regency’s mission to provide access to affordable, quality healthcare in the under-served and densely populated state of Uttar Pradesh,” said Matt Eliot, IFC’s Principal Investment Officer. “The private sector, in partnership with global investors, has a significant role in addressing India’s healthcare challenges,” he added.
Dr. Amit Varma, Sponsor of Healthquad, said, “Regency represents a unique opportunity to work with a strong clinical and management team to improve the access to high quality care across a trusted hospital network in India’s largest state of Uttar Pradesh. The thrust to provide best infrastructure and technology at an affordable price point will deliver the much needed benefit and outcomes to all the stakeholders.”
Adding to that, Charles Antione Janssen of KOIS stated, “We have reposed our confidence in Regency to be at the forefront of providing the best medical service to the population of Uttar Pradesh. Uttar Pradesh seems to have been neglected by leading private players and in the process left a fertile ground for a local player like Regency to create an impact driven healthcare model.”