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Kauvery Hospitals receives $70 M investment from private equity fund managed by IIFL AMC
IMT News Desk
Kauvery Hospitals receives $70 M investment from private equity fund managed by IIFL AMC
IMT News Desk
The investment holds significance in Kauvery Hospitals' next phase of growth which is likely to move towards an IPO tentatively in the next three years
Sri Kauvery Medical Care (India) (Kauvery Hospitals), has successfully raised equity funding of $70 million from a private equity fund managed by IIFL Asset Management (IIFL AMC) for a minority stake.
The investment holds significance in Kauvery Hospitals' next phase of growth which is likely to move towards an IPO tentatively in the next three years, which comprises augmenting capacities in Chennai and Bengaluru, along with expansion in chosen clusters within Tamil Nadu and Karnataka. This also marks IIFL PE’s maiden investment in the multi-speciality hospital segment and is also amongst the few minority investments in the multi-speciality space in India in recent times.
“Kauvery is currently in the midst of a fast-paced expansion program, as it plans to reach 1,000 beds each by 2025 in Chennai, Bengaluru and Tamil Nadu clusters. This ramp-up would mean that the network shall comprise 15 hospitals spread across 7 cities in South India, with 3,000+ beds and shall likely go for an IPO, in the next 36 months,” Dr Chandrakumar, Founder and Chairman, Kauvery Hospitals Group said. He added, “IIFL PE has successfully backed numerous growth stories, and their presence on board will accelerate our organic and acquisitive growth across the South India market.”
Dr Manivannan, Founder and MD, Kauvery Hospitals said, “Kauvery continues to provide the best-in-class personalised care with the highest standards of clinical protocols and ethical practices. This is a key differentiator for us, and a primary driver of our growth and profitability across all our existing regions. We look forward to having IIFL PE as a valued partner and leverage from its expertise of growth investments within and outside of healthcare.”
“Our investment in Kauvery Hospitals underlines IIFL AMC’s increasing focus on investments in the healthcare businesses that offer comprehensive and affordable care to a broader set of patients,” said Nidhi Ghuman, Sr EVP at IIFL AMC. “Kauvery has strived to stay abreast in identifying the gaps in affordability and accessibility of healthcare services and consequently leveraged its capabilities to fill those spaces in its focus markets. We’re thrilled to be partnering with a stellar leadership and their management team to further scale their reach across South India,” she added.
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