Homegrown private equity fund Kedaara Capital, which has backed microlender AU Small Finance Bank and eyewear unicorn Lenskart among others, on Monday said it has acquired a majority stake in Hyderabad-based dermatology chain Oliva Skin and Hair Clinic for an undisclosed amount.
In August last year, VCCircle had first reported that Kedaara would likely invest Rs 350 crore (around $42.6 million) for a majority stake in Oliva Skin and Hair Clinic, offering a full exit to its early-stage investor Invascent, which owns around 30% stake in the dermatology chain.
“Kedaara, with its operational expertise and experience in healthcare, will support Oliva in the next step of its growth journey and in realising its vision of becoming the most trusted brand for world-class medico-aesthetic dermatology services in India,” said Ashutosh Sardesai, director at Kedaara Capital.
Oliva, founded by Prashant Soma in 2009, operates 23 clinics in seven cities. The company, run by Sreyas Holistic Remedies Pvt Ltd, counts venture debt and alternative credit platform BlackSoil Capital and Bengaluru-based Entrust Family Office Investment Advisors among its other investors.
Oliva raised funding from InvAscent-managed India Life Sciences Fund in 2014. InvAscent had picked up a minority stake in the dermatology chain, gradually increasing its exposure in the skin clinic over multiple rounds.
This will be Kedaara’s third investment in the healthcare space from its third fund. Its other healthcare-focused portfolio investments include ASG Eye Hospitals and Oasis Fertility.
The PE firm also made a handful of healthcare-focused investments from its previous funds, making a notable exit from Hyderabad-based Vijaya Diagnostic Center following its public listing in 2021. It had invested about Rs 350 crore in the diagnostic firm, and had sold about 1.1 million shares during the firm’s IPO, purely an offer-for-sale (OFS), clocking about 44% annualized returns from the investment.
In a bid to expand its healthcare and pharmaceuticals’ practice, the Mumbai-based PE recently roped in former Aurobindo Pharma managing director, Govindarajan Narayanan for a senior management seat, who has worked in the pharmaceuticals industry for about 30 years.
Currently, Kedaara Capital’s total assets under management are valued at about $3.6 billion, with some of its notable investments being AU Small Finance Bank, Mahindra Logistics, Lenskart, AMI Lifesciences, among others.
Amid other developments in the healthcare space, Tata Capital Healthcare Fund, the healthcare-focused arm of private equity firm Tata Capital Ltd, in January invested $10 million in a Series A funding round in Mumbai Oncocare Centre, a chain of Cancer Daycare Centres.
Last week, VCCircle also reported that at least three private equity firms have emerged as contenders to invest in NU Hospitals Pvt. Ltd, a south India-based chain of nephrology and urology hospitals. The hospital chain is in the final stage of discussion with InvAscent, South and Southeast Asia-focused PE firm Creador, and North Haven India Infrastructure Fund.