Private equity firms are increasingly exploring the ‘Platform Play’ strategy to build scale in India’s healthcare industry. The approach, widely adopted in global markets, is now gaining momentum among investors looking to consolidate fragmented businesses into strong, scalable platforms.
Speaking at the VCCircle Healthcare Summit 2025 in Mumbai, Swati Mehta, Director - Healthcare at o3 Capital, outlined why this model is becoming a preferred route for PE firms in India and how it is reshaping the healthcare landscape.
A New Growth Lever for Healthcare
“India’s healthcare sector remains highly fragmented, and platform plays are a structured approach to achieving efficiency and scale,” Mehta said.
Unlike one-off investments, platform strategies allow investors to bring multiple healthcare businesses under a single operational framework. Mehta emphasized that this results in procurement advantages, stronger branding, and improved compliance—critical factors for long-term success.
“Promoters are increasingly realizing that aligning with a structured platform provides improved access to capital and operational expertise, helping them scale faster,” she noted.
Choosing the Right Anchor Asset
A successful platform strategy starts with selecting the right base company—one that has a strong brand salience, dominant market presence and is well-positioned for expansion.
“The challenge is not just acquiring companies, but also ensuring that they integrate well within a broader ecosystem. Strategic alignment is crucial for the platform’s success,” Mehta explained.
She also highlighted the importance of founder alignment, stating that many entrepreneurs are initially cautious about ceding control. However, the benefits of structured capital and operational efficiencies often outweigh these concerns.
Due Diligence: A More Stringent Process
Mehta emphasized that due diligence in platform plays is as rigorous as, or in some cases far more rigorous compared to traditional acquisitions.
“It’s no longer just about financial and legal diligence. Business integrity assessments, ESG compliance, and synergy evaluations play a vital role in ensuring seamless integration,” she said.
For platforms acquiring multiple entities, alignment on operational and cultural fit is key. “Post-acquisition integration is often the differentiator between success and failure,” she added.
Platform Play Across Healthcare Segments
The platform strategy is being widely adopted across multiple healthcare verticals.
“We see single-specialty hospital chains consolidating, diagnostic firms acquiring regional labs, and med-tech companies integrating product portfolios. The model is proving to be scalable across all segments,” Mehta observed.
She pointed out that several healthcare brands implementing platform plays are now preparing for IPOs, a testament to the strategy’s long-term viability and growth prospects.
Balancing Autonomy with Centralization
One of the biggest challenges in platform plays is striking the right balance between central control and operational independence.
“When a PE firm acquires a regional healthcare business, it must retain the local strengths that made it successful while introducing efficiencies. Over-standardization can dilute the brand’s regional advantage,” Mehta said.
She emphasized that while PE firms maintain financial oversight, allowing local leadership to operate independently is crucial. “A rigid approach weakens acquisitions. The key is to balance structure with autonomy,” she noted.
The Future of Platform Plays in Healthcare
Historically, international investors have led platform plays due to their deep capital reserves. However, domestic investors are now systematically exploring this strategy as well. They are structuring platform investments more strategically. While global funds bring large-scale capital, these local investors are developing strong consolidation thesis.
Interest in platform strategies is also expanding beyond private equity, with venture capital firms, family offices, and strategic investors increasingly viewing consolidation as a viable investment approach.
As India’s healthcare industry evolves, platform plays are expected to drive the next phase of growth. Although still in the early stages, the trajectory is clear—investors building strong platforms today are well-positioned to create significant long-term value.
With private equity firms increasingly adopting platform strategies, this model is set to play a crucial role in consolidating and scaling India’s healthcare ecosystem.
About o3 Capital
o3 Capital is India's leading mid-market investment bank, delivering financial and strategic advice to our clients. We provide responsible advice by leveraging our deep domain knowledge, access to key decision makers and successful transaction experience of over 18 years. We bring a unique combination of insights, expertise and innovation, enabling us to address our clients’ most challenging assignments.
We bring our expertise to serving a wide range of clients, including established market leaders, private equity houses, large global corporate entities and cutting-edge start-ups. Every transaction is personally managed from start to finish by experienced senior bankers with specific sector experience and a deep commitment to our client's success. Healthcare and Lifesciences are two key verticals for us, and we have a strong track record of delivering tailored, responsible, and unbiased solutions. We have closed several deals worth billions of dollars in the space and are a trusted partner across the ecosystem. Our teams are based out of Mumbai, Bengaluru & New York.
No VCCircle journalist was involved in the creation/production of this content.