Kauvery Hospital has raised US$70 million in equity funding from a private equity fund managed by IIFL Asset Management Limited (IIFL AMC) for a minority stake.
In a press release, the multi-speciality hospital chain said the investment holds significance in its next phase of growth, which is moving towards an IPO in the next 3 years.
“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," said Chandrakumar, Founder and Chairman of Kauvery Hospitals Group.
IPO plans
He added that the expansion 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.
Established in 1999 as a 30-bedded hospital in Trichy, Kauvery Hospital today has a network of 8 facilities comprising 1,500 beds spread across six cities including Chennai, Trichy, Bangalore, Salem, Hosur and Tirunelveli. The company has been backed by reputed Indian and global investors such as Lightrock and GSK Velu’s family office.
IIFL AMC, part of 360 ONE, is an alternative asset management firm with overall assets and public market investments of more than US$7 billion.
Nidhi Ghuman, Sr. EVP, IIFL AMC, said that the 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.