Private equity fund ChrysCapital invests up to $100 million in eye care chain Centre for Sight

Private equity fund ChrysCapital is investing up to $100 million in the New Delhi-based Centre for Sight (CFS), one of the country’s leading eye care chains. ChrysCapital is one of the leading private equity funds investing in India. 

This transaction involves a mix of primary infusion and purchase of the entire stake held by Mahindra Holdings, a wholly-owned subsidiary of Mahindra & Mahindra, for acquiring a significant minority stake in CFS, according to a press release. 

This investment will support the ability of the Centre for Sight to further scale and serve the growing demand for eye care across Tier 1 and Tier 2 cities in the country.

"This investment from ChrysCapital, which is a mix of primary and secondary, will support CFS in accelerating its expansion plans and will also provide an exit for MHL, which invested in the Company in 2019. CFS has strong potential to accelerate its growth trajectory that it has showcased over the last five years driven by continued growth in existing centers and expansions through a mix of greenfield centers and inorganic expansion," according to the release. 

Organised branded chains, such as CFS, are expected to gain share from standalone clinics, and ChrysCapital sees an opportunity for CFS to further scale through accretive tuck-in acquisitions at an accelerated pace in the next few years, it added. 

“The healthcare sector in India is a key area of focus for ChrysCapital given the significantly underserved market and the potential for share gain for organised players. ChrysCapital is very excited to partner with Centre For Sight, which has exhibited robust growth while maintaining strong profitability. We look forward to working with the team and strengthen CFS’s position as one of the leading healthcare delivery platforms in India," said Raghav Ramdev, Managing Director, ChrysCapital. 

“I am delighted and excited to welcome ChrysCapital, one of the most sought-after investors, as a valued partner in the next phase of growth of the business," said Dr Mahipal Sachdev, Chairman and Founder of the Center For Sight. 

ChrysCapital’s investment is an endorsement of Centre For Sight’s capabilities and will also provide impetus to its growth plans of strengthening its leadership position, said Dr Sachdev. "I also take this opportunity to thank Mahindra Holdings for their support in our journey over the last five years, especially during the testing times of COVID. It’s a relationship that CFS will value forever," he added. 

“For Mahindra Group, the CFS investment exemplifies our focus on long term sustainable value creation. It’s been a pleasure to be a strategic partner to CFS and Dr Mahipal Sachdev in their journey towards building one of the largest ophthalmology businesses in India and we are confident with new partnership with ChrysCapital, CFS will continue on its strong upwards growth trajectory," said Puneet Renjhen, Head-Partnerships and Alliances, Member of Group Executive Board of the Mahindra Group.

"o3 Capital acted as the exclusive financial advisor for the transaction. Alvarez & Marshal (A&M) advised ChrysCapital on the commercial and financial diligence. Shardul Amarchand Mangaldas & Co (SAMCO) acted as legal counsel to ChrysCapital, IndusLaw acted as legal counsel to the Mahindra Group and DMD Advocates acted as legal counsel to Company and Promoters," the release further stated. 

What is the Centre for Sight? What does it do?

Established in 1996 by Dr Sachdev, an eminent ophthalmologist and Padma Shri awardee, the Centre for Sight is a leading eye care provider in India. It has been the pioneer in high-quality vision care for more than two decades.

The Centre for Sight has carefully handpicked a team of more than 300 doctors from premier institutions across the country, is present across 39 cities through 83 eyecare centres, and serves over 1.5 million each year.