Indian private equity firm CX Partners, which invests across healthcare, financial services and IT sectors, said Monday it has led a consortium of investors to acquire a controlling stake in a Kerala-based fertility services and mother and child care provider.
The hospital, Sabine Hospital & Research Centre, secured $50 million (Rs 420 crore) in funding, with CX Partners-led consortium purchasing a 53% stake at a valuation of approximately $100 million (Rs 835 crore), according to a person familiar with the matter.
VCCircle had earlier reported that CX Partners was the frontrunner for this investment, and the total funding round was expected to be around $50 million. The consortium included the family office of Sunil Kant Munjal, chairman of Hero Enterprise, and boutique equity investor ValueQuest, which invested Rs 70 crore ($8.4 million) for a minority stake. Singapore-based growth stage private equity firm Tanas Capital also participated.
“CX Partners and the consortium of investors share our vision of making high-end fertility, birthing, and neonatal care affordable and accessible to the most remote towns of India,” said Sivadasan Sabine, founder and chairman of Sabine Hospital & Research Centre. “The investment of $50 million validates our strong clinical fundamentals, business practices, and recognizes the immense need for better fertility, mother, and childcare in India.”
The hospital recorded net sales of Rs 160 crore during FY23, up from Rs 140 crore the previous year. Its EBITDA increased to Rs 65 crore from Rs 49 crore in the same period, according to VCCEdge, the data research platform of VCCircle.
“The organization has demonstrated remarkable growth, with a CAGR of 25% over the last three years,” said Vivek Chhachhi, managing partner at CX Partners. “We see potential in further expanding Sabine Hospitals to adjacent markets, drawing upon our experience in healthcare investments, attracting high-quality professional leadership, and implementing systems to manage growth.”
Sabine Hospital and Research Centre, incorporated in 2016 as a single facility near Kochi, now operates 300 beds, including 60 neonatal intensive care unit (NICU) beds, across two facilities in Kerala. It offers services in various verticals, including infertility, assisted reproductive technology, obstetrics, gynecology, neonatology, pediatrics, general surgery, and genetics.