Dr Agarwal’s Health Care Ltd has raised $80 million (Rs 665 crore)from existing private equity investors TPG Growth and Temasek, as the eyecare chain seeks to double its network of hospitals.
The company plans to deploy the capital to expand its current network of over 150 centres to more than 300 centres in the next three years, the parent of Mumbai-listed Dr Agarwal's Eye Hospital Ltd said in a statement Thursday.
The fundraise comes a little more than a year after TPG Growth, the middle market and growth equity platform of US-based TPG, and Singapore state investment firm Temasek invested Rs 1,050 crore (around $136 million) in the company. That transaction was the largest private equity deal in the eyecare space in India.
“The investment will be used to support the business through its next phase of growth, including the acquisition of small hospitals and chains as well as greenfield expansion of our network," said Dr. Adil Agarwal, CEO, Dr. Agarwal’s Group of Eye Hospitals. The group is also looking to expand “aggressively” in Maharashtra, Punjab, Delhi, Uttar Pradesh, and central India, besides penetrating deeper into its existing markets, he said.
He added: “We will also be establishing over 100 primary eye clinics in tier 2 and tier 3 towns in the next couple of years. Africa is another important geography for us. We have an existing network presence of 15 hospitals, and we will be deepening our presence in Kenya, Zambia, and Tanzania and look to add 10 centres across these countries.”
Along with network growth, the company will invest in modern methods for vision correction, including laser cataract surgery, as well as in treatments for vitreo-retinal disorders such as diabetic retinopathy and age-related macular degeneration.
The company, which started as a single facility in Chennai in 1957, currently has 151 centres (140 hospitals and 11 eye clinics) spread across India and Africa. The group has a presence in 10 countries and over 14 states in India. It employs over 500 ophthalmologists and 3,500 employees.
Shares of Dr. Agarwal's Eye Hospitals jumped as high as 10.3% before paring the gains to trade about 4.2% higher on Thursday afternoon.
Veda Corporate Advisors was the financial advisor to Dr. Agarwal’s Health Care on this transaction.
