PE firm TA Associates picks significant minority stake in India’s Indira IVF

Photo: Pixabay

US-based private equity firm TA Associates on Monday announced that it has acquired a significant minority stake in fertility treatment provider Indira IVF.

Financial terms of the transaction were not disclosed.

Founded in 2014 by Dr Ajay Murdia, Dr Kshitiz Murdia, Nitiz Murdia, Ashish Lodha and Manish Khatri, Indira IVF claims to have the largest network of in-vitro fertilization (IVF) centres in India. It currently operates 59 centres across 16 states in India and has completed nearly 27,000 IVF cycles in the last 12 months.

The company has an employee base of 1,800, including more than 150 IVF specialists and 100 embryologists, it said in a  statement.

Naresh Patwari, a director at TA Associates Advisory Pvt Ltd, said, “IVF is a large and fast-growing opportunity in India that we believe has the ability to make a lasting positive impact on the lives of millions of people. We look forward to working with Dr. Ajay Murdia and the management team at Indira IVF to help them continue their growth efforts in India and in international markets, both organically and inorganically, and to help them offer additional adjacent clinical services.”

As part of the deal, Patwari and Dhiraj Poddar of TA Associates will join Indira IVF’s board as nominee directors.

Citing a study by Ernst & Young (EY), Indira IVF said that more than 25 million couples actively seeking children in 2015 were suffering from infertility-related issues. Industry estimates suggest that there are 150,000-250,000 IVF cycles being done annually in India, and EY expects the industry to grow at nearly 20 per cent annually.

Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services, TA Associates has invested in more than 500 companies around the world. TA has raised $24 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $2 billion per year.

Its other portfolio companies in India include Fincare Business Services Ltd, a rural-centric financial inclusion platform; Prudent Corporate Advisory Services Ltd, a distributor of mutual funds and other wealth products; and Ideal Cures Private Ltd, a supplier to pharma and allied industries.

Pioneer Legal (previously with DSK Legal) provided legal counsel and KPMG served as financial advisor to TA Associates. Veritas Legal provided legal counsel to Indira IVF.

Also Read:

TA Associates elevates India head Dhiraj Poddar as MD

India: Fincare raises $13.6m from existing investors True North, TA Associates, others