India: TPG Growth, Temasek invest $136m in Dr Agarwal’s, ADV Partners exits

Visual from Dr Agarwal’s Health Care website

Chennai-based Dr. Agarwal’s Health Care Ltd. (DAHCL) has raised about $136 million (Rs 1,050 crore) from new investor TPG Growth, Texas Pacific Group, and existing investor Temasek to fuel its expansion plans, it announced on Tuesday.

The transaction, which is a mix of primary and secondary infusion, has paved the way for an exit for its existing investor ADV Partners, said Dr Agarwal’s in a statement.

ADV Partners had invested around $45 million Dr Agarwal’s in 2016.

“The new investments will be used to expand our Indian and international footprint and deploy latest technologies for super-specialty eyecare,” said Amar Agarwal, chairman, Dr Agarwal’s Group of Eye Hospitals.

“The new investments will enable us to double our network in the next 3 years and we will be pursuing acquisitions in key markets such as Maharashtra, Gujarat, Punjab, Karnataka, AP, Telangana, etc, as well as a rapid greenfield expansion of our network across the country. Africa is another important geography for us. We have an existing network presence of 15 hospitals, and we will be deepening our presence in countries such as Kenya, Mozambique, Tanzania, and Ghana,” added Adil Agarwal, CEO, Dr Agarwal’s Goup of Eye Hospitals.

Dr. Agarwal’s Group of Eye Hospitals claims to have added more than 60 units to its network in the past five years alone. It plans to deploy capital to expand the current network of 105 hospitals to over 200 in the next 3-4 years. The group’s presence spans across 11 countries and over 12 states in India.

The company notched a revenue of over Rs 700 crores in FY22.

“The healthcare sector in India is a core focus for TPG, and we are
proud to be partnering with the number one private eye care chain in the country to continue delivering critical eye care to a market that has a disproportionately high incidence of visual impairment,” said Ankur Thadani, Managing Director, TPG Growth.

Veda Corporate Advisors and Avendus Capital were the Financial Advisors to the company for this transaction.

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