PE firm Kedaara Capital acquires majority stake in derma chain Oliva Skin & Hair Clinic for $65 million

Private equity firm Kedaara Capital on Monday acquired majority stake in medico-aesthetic dermatology services player Oliva Skin & Hair Clinic for $65 million. This is Kedaara Capital 's third investment in the single speciality healthcare segment.

Oliva was founded by Dr. Prashant Soma in 2009 and gradually grew from a 4-centre Hyderabad-based operation to a network of 23 centers across 7 cities in India following support from multiple rounds of funding from InvAscent-advised India Life Sciences Fund II. The transaction will also provide an exit to InvAscent, which invested in the company in 2014.

The company currently offers a range of skin and hair treatments and products with a roster of over 90 dermatologists and follows a clinician focused approach with consultations done only by dermatologists.

“Globally, aesthetic dermatology treatments have seen a steady rise in demand with increasing disposable incomes, rise in prominence of non-invasive technology for treatments, and acceptance of aesthetic dermatology treatments across demographics. India has seen a similar increase in demand driven by rising disposable incomes leading to improved affordability and rising use of social media accentuating the “necessity to look good”, said Dr Prashant Soma, Co-founder & CEO, Oliva Skin & Hair Clinic.

“Further, structurally, organised chains are expected to gain share from standalone clinics, and there is an opportunity for players such as Oliva which have the right mix of medical and aesthetic treatments to consolidate the fragmented market through accretive tuck-in acquisitions,” said Soma.

The company is a fast-growing chain with 23 dermatology clinics in seven major cities including Hyderabad, Bengaluru, Chennai, Pune, Kolkata, Kochi, and Vizag.  Some of the key treatments offered by Oliva include laser hair removal, hair platelet-rich plasma (PRP), laser toning for skin, chemical peels, acne scar removal, body contouring, skin tightening, Botox, and dermal fillers. Company also sells Oliva branded therapeutic products, and other essential products for skin and hair care at its centers and their online store.

“Oliva has created a scalable, replicable model with a strong focus on delivering superior outcomes especially for complex treatments requiring clinical intervention,” Nishant Sharma, Founder, CIO & Managing Partner of Kedaara Capital said. Kedaara Capital in August 2022 acquired minoroty stake in IVF chain Oasis fertility clinics.

Oliva has also established a training program where dermatologists and technicians are trained on treatment protocols and standard operating procedures (SOPs). For the transaction, Avendus acted as the exclusive financial advisor, Acuity was the legal counsel to Oliva Skin & Hair Clinic, and Panini acted as an advisor to the promoter. Veritas Legal acted as legal counsel to Kedaara Capital and Quillon Partners acted as legal counsel to InvAscent.  

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