Kotak Strategic Situations India Fund II, which is managed by Kotak Alternate Asset Managers Ltd, said Friday that it has made a private equity investment worth Rs 940 crore ($109.5 million) in diagnostic chain Neuberg Diagnostics Pvt. Ltd.
The funds will support the inorganic expansion strategy of Neuberg, which says it is the fourth-largest diagnostic player in India.
The company, which was founded by industry veteran GSK Velu, has a track record of acquiring and integrating leading regional diagnostics players and scaling them under the Neuberg platform.
Neuberg operates a network of more than 10,000 touchpoints and over 250 labs in 250 cities. It claims to have a market leadership in Gujarat and Karnataka and says it is the second-largest genomics player in India with a leading position in newborn screening and reproductive genomics testing.
“The investment reflects our confidence in Neuberg's vision and potential. We are confident that this strategic investment will play a key role in increasing the scale of Neuberg and help the company get ready for its upcoming IPO,” said Rahul Shah, partner at Kotak Alternatives.
Velu, the founder and managing director of Neuberg, said that the funding will help the company on its journey to becoming one of the largest diagnostics chains of Indian origin.
“The funding will enable us to enhance our capabilities in the areas of personalized medicine, and integrated diagnostics and inorganically expand our footprint across the country. As we prepare for an IPO, we remain committed to making high-quality diagnostics accessible to all, ensuring that our services continue to meet the evolving needs of clinicians and patients,” added Velu.
Velu had previously said in the media that the company reported more than Rs 1,000 crore in consolidated revenue in the financial year that ended March 2024. Its revenue in FY23 stood at Rs 551 crore with a net loss of Rs 41.5 crore.
