Chennai-based Sri Kauvery Medical Care Pvt Ltd, which runs the Kauvery Hospital chain in Tamil Nadu, has raised about $19.4 million (Rs 140 crore) in equity funding from impact investor LGT Lightstone Aspada.
This is LGT Lightstone Aspada’s first investment after LGT announced last month that it has acquired the management organisation of Aspada and a significant majority position of its portfolio from Aspada’s sole shareholder, Soros Economic Development Fund (SEDF).
The investment proceeds will be used to strengthen the presence of Kauvery in Tamil Nadu, and to expand footprint across south India, per a statement.
“We are looking at adding 12-15 hospitals with an aggregate capacity of 3,000+ beds to our network over the next 3-5 years with a major focus on South India. The expected funds to be deployed for this proposed expansion will be around Rs 7,00 crore,” said S Chandrakumar, founder, executive chairman, Kauvery Hospitals.
“This expansion will be done through a mix of strategic partnerships, acquisitions and brownfield hospitals,” he added.
Established in 1999, Kauvery Hospital is currently present in five cities in Tamil Nadu – Trichy, Chennai, Salem, Hosur and Kariakudi. It offers services primarily in the areas of cardiology, gastroenterology, nephrology, neurosciences, trauma, critical care and oncology.
“Healthcare is one of our core themes of focus. Our investment in Kauvery is an important milestone in our effort to contribute towards building an interconnected healthcare system in India that improves overall health outcomes and affordability” said Kartik Srivatsa, Managing Partner LGT Lightstone Aspada.
In the healthcare space, Aspada had earlier invested in South India-based hospital chain Be Well Hospitals.
Veda Corporate Advisors advised Kauvery Hospital on the deal.