Kauvery Hospitals gets $70 mn investment from PE fund managed by IIFL AMC

Sri Kauvery Medical Care (India), a leading hospital chain in South India, has raised $70 million from a private equity (PE) fund managed by IIFL Asset Management for a minority stake.

The investment will help Kauvery Hospitals, as the company is called alternatively, to expand business and likely move for an initial public offering (IPO) in the next three years. The chain is augmenting capacity in Chennai and Bengaluru, as it expands in select clusters in Tamil Nadu and Karnataka. The deal marks IIFL PE’s maiden investment in the multi-specialty hospitals segment.

Established in 1999 as a 30-bed hospital, Kauvery Hospitals now has a network of eight facilities comprising 1,500 beds in six cities: Chennai, Trichy, Bangalore, Salem, Hosur and Tirunelveli. The company said in a statement it is backed by reputed Indian and global investors like Lightrock and GSK Velu’s family office to achieve its market position. The hospital network offers comprehensive care across specialties with a strong focus on cardiology, oncology, neurology, renal sciences, orthopaedics, and organ transplants, amongst others.

IIFL AMC, part of 360 ONE, is one of India’s leading alternative asset management firms with overall alternate assets and public market mandates of more than $7 billion. IIFL PE has assets under management of $3 billion and investment strategies extending from mid-stage venture capital to pre-IPO investments.

“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 seven cities in South India, with over 3,000 beds and shall likely go for an IPO, in the next 36 months,” said S Chandrakumar, founder and chairman of Kauvery Hospitals.

“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,” said S Manivannan, founder and managing director of Kauvery Hospitals.