Sri Kauvery Medical Care raises $70M private equity fund from IIFL AMC

Sri Kauvery Medical Care (India) Ltd has raised equity funding of $70 million from private equity fund managed by IIFL Asset Management Ltd for a minority stake, the healthcare provider said on Thursday.

Sri Kauvery Medical Care is backed by various investors including Lightrock and Dr GSK Velu's family office. The hospital offers high-quality comprehensive care across specialities with a focus on cardiology, oncology, neurology, renal sciences, orthopaedics among others.

The fresh round of investments by IIFL AMC holds significance in Sri Kauvery Medical Care's next phase of growth which is likely to move towards an initial public offering (IPO) in the next three years, which comprises augmenting capacities in Chennai and Bengaluru.

"This (latest investment) also marks IIFL PE's maiden investment in the multi-speciality hospitals segment and is also among the few minority investments in the multi-speciality space in Indian in the recent times," Sri Kauvery Medical Care said in a press release.

Commenting on the investments by IIFL AMC, the hospitals group founder-chairman Dr S Chandrakumar said: "This ramp-up would mean that the network shall comprise 15 hospitals spread across seven cities in South India, with 3,000 beds and shall go for an IPO in the next 36 months."

"IIFL PE has successfully backed numerous growth stories, and their presence onboard will accelerate our organic and acquisitive growth across the South India market," he said.

IIFL AMC senior executive vice president Nidhi Ghuman said, "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."

"We are thrilled to be partnering with a stellar leadership and their management team to further scale their reach across South India," he said.

Investment bank o3 Capital was the exclusive financial advisor and Shardul Amarchand Mangaldas and Co acted as the legal advisor to Kauvery Hospitals while Jerome Merchant + Partners were legal advisor to IIFL AMC on this transaction, the company said.