Aavishkaar India Micro Venture Capital Fund (Aavishkaar), a Mumbai-based private equity fund focused on rural and social enterprises, has invested an undisclosed sum in G V Meditech Pvt Ltd, a Delhi-based company providing affordable healthcare services. Without divulging financial details of the transaction, Aavishkaar said it had picked up a significant minority in the company.
This is the third investment of Aavishkaar in the affordable healthcare space in India. Earlier, it had invested in Swas Healthcare Pvt Ltd, a Gujarat-based chain of naturopathy clinics and hospitals and Vaatsalya Healthcare Pvt Ltd, a hospital chain focused on affordable healthcare in Karnataka. Investment banker Intellecap has advised on the transaction.
G V Meditech, with significant operations in Varanasi district in Uttar Pradesh, plans to utilise the fund to expand to other semi-urban and rural areas.
“In the medium and long term, G V Meditech will launch many more of these hospitals, providing medical services to the rural population throughout UP and beyond. With the support of Aavishkar, we will move forward in our mission to reach the poor and to provide quality healthcare at their doorstep,” Dr. Indu Singh, founder & CEO, G V Meditech, said, in a statement.
The company plans to open several secondary hospitals in the next one year as well as expand facilities at their primary hospital. It also plans to strengthen its operation to provide quality medical, diagnostic and pharmacy facilities to patients, who otherwise travel long distances to avail of these services.
P Pradeep, Partner, Aavishkaar, said, “We are proud to partner with G V Meditech on account of its experienced and passionate management team and the focus on providing affordable and high quality healthcare in the highly under-served northern belt of the country.”
Aavishkaar fund primarily invests in commercially viable enterprises that also have a social impact including sectors such as technology for development, agriculture, rural innovations, handicrafts, health and education. Earlier in 2009, the fund has invested Rs 1 crore in Zameen Organic, a Hyderabad-based organic cotton trading company. Some of its other investments include Pune-based Saraplast Pvt Ltd, Gujarat-based Swas Healthcare Pvt Ltd, and Hyderabad-based Waterlife India Pvt Ltd.
