Transaction:
- Quadria Capital, one of Asia’s largest healthcare-focused private equity firm invested INR 850 Crores in a series F funding round of NephroPlus, valuing the company at more than Rs. 2000 Crores.
- Through this transaction, Quadria acquires significant minority stake through a combination of a primary investment of Rs. 100 Crores and the purchase of shares from existing shareholders including Investcorp, Bessemer Venture Partners, IFC, and IIFL Private Equity.
About NephroPlus:
- Founded in 2010, NephroPlus is a uniquely positioned dialysis provider with around 450 dialysis centers across India, the Philippines, Nepal, Uzbekistan and Saudi Arabia offering quality, affordable services to around 30,000 of patients and performing over 3 million dialysis sessions each year.
- The company serves patients across dialysis centres in marquee hospitals and at standalone clinics, working with leading nephrologists through public-private partnerships.
About Quadria Capital:
- Founded in 2012, Quadria is an Asia healthcare-focused private equity firm with assets under management of over USD 3.4 billion.
- The top investments include Healthcare Delivery, Life Sciences, Medical Technology and Associated Healthcare Services subsectors.
Rationale:
- The new funding will fuel the organic growth plans while allowing to make significant acquisitions, putting NephroPlus at the forefront of dialysis healthcare innovation.
- NephroPlus is expected to gain market share as hospitals increasingly outsource dialysis operations and as governments seek to make high-quality dialysis services more accessible.
- As reported by ET, NephroPlus posted revenue of Rs. 550 Crore in FY 24, recording 25% growth.
- Quadria will have a slightly higher stake than Bahrain-based Investcorp, which was the largest shareholder in the company prior to the latest round at 35-40%.
- The PE firm expects demand for dialysis to grow at a rate of over 11 per cent annually over the next five years in the markets it is targeting for expansion.
- Quadria’s healthcare expertise, capital, and focus on operational value creation will put the company in a better position to scale, innovate, and deliver affordable, high-quality care.
- In September 2023, NephroPlus entered into a 51:49 joint venture (JV) with Tibbiyah (Arabian International Healthcare Holding Company) to expand its operations to Saudi Arabia.
- In January 2023, NephroPlus received about Rs. 70 crore loan from Asian Development Bank for expanding in Uzbekistan.
- In 2021, NephroPlus raised Rs. 80 crore in a Series E funding round led by IIFL Asset Management along with existing investors Investcorp and BVP.Till date, the company has raised about $104 million through several rounds.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.