INDIA – Hospital chain Kauvery Hospital Group has snapped up US$70 million in an investment funding round from a private equity fund managed by IIFL AMC allowing for its expansion across India.
Backed by reputed Indian and global investors Lightrock and Dr. GSK Velu’s family office, the Kauvery Hospital Group plans to increase its footprint across India to help consolidate its current scale and market positioning.
Kauvery is currently in the midst of a fast-paced expansion programme, as it plans to reach 1,000 beds each by 2025 in Chennai, Bengaluru, and Tamil Nadu clusters.
Founded in 1999, Kauvery Hospitals currently has eight well-equipped facilities at various locations across the country, including Tiruchirappalli, Chennai, Salem, Hosur in the Indian state of Tamil Nadu, and Bengaluru in the state of Karnataka.
Kauvery Hospitals, one of the leading hospital chains in South India, spearheaded by Dr. S Chandrakumar and Dr. S Manivannan, has built a strong foothold in its focus markets of Tamil Nadu and Karnataka.
The hospital network offers high-quality comprehensive care across specialties with a strong focus on cardiology, oncology, neurology, renal sciences, orthopaedics, and organ transplants, amongst others.
“With a paramount focus on patient care, patient safety, and patient satisfaction, we are committed to offer exemplary medical services going beyond the norm of healthcare,” the company says on its site.
The multi-speciality hospital will use the funds from the IIFL AMC’s private equity fund to expand its bed capacity over the next three years to meet the growing demand for high-quality health care services.
“From the current 1,600 beds, we are scaling to over 3,500 beds through a combination of greenfield and brownfield projects in the next 18-24 months,” said Dr. S Chandrakumar, Founder and Chairman of Kauvery Hospitals Group.
He further said that the hospital chain will extend its offerings, with a focus on mother, child care, and pre and postoperative patient engagement areas, among others.
He pointed out that upon completion of the infrastructure project, the network shall comprise 15 hospitals spread across seven cities in South India
“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,” added Dr. S Chandrakumar.
Through the investment, IIFL Private Equity Fund has acquired a minority stake in Chennai-based Kauvery Hospital. The deal is expected to value the hospital chain at more than US$364 million
According to the official statement, this marks IIFL PE’s maiden investment in the multispecialty hospitals’ segment.
The premier private equity business has backed several market-leading companies with a focus on healthcare, technology, financial services, and consumer industries
Part of 360 ONE, it is one of India’s leading alternate asset management firms with overall alternate assets and public market mandates valued at more than US$7 billion.
The latest investment in Kauvery Hospitals reiterates IIFL AMC’s increasing focus on investments in healthcare businesses that offer comprehensive and affordable care to a broader set of patients.
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