R ARIVANANTHAM
CHENNAI, MAY 11
Dr Agarwal’s Health Care Ltd (DAHCL) has raised the PE fund to the tune of Rs 1,050 crore from TPG Growth, the middle market and growth equity platform of alternative asset firm Texas Pacific Group which is one of the leading investment firms based out of the US, and from existing investor Temasek, a global investment company headquartered in Singapore.
The initiative claims to be the India’s largest fund-raising in the eye-care space, will also provide significant capital to fuel the company’s expansion plans and pave the way for an exit for existing investor, ADV Partners. The company had also raised Rs 270 crores investment from Temasek in 2019.
- Company intends to double the current network of 105 hospitals to over 200 hospitals in the next 3-4 years
- Plans to establish 500 Hub-and-Spoke model ‘2020 Dr Agarwal’s Eye Clinics’ in Tier-II and Tier-III cities
Announcing this Prof Dr Amar Agarwal, Chairman, Dr Agarwal’s Group of Eye Hospitals said, “We have had a great journey with our investor, ADV Partners, over the past 6 years. We are very excited to partner with TPG Growth and Temasek and look forward to the next phase of growth of our company. Backing from such world-renowned marquee investors further strengthens our ideology of providing quality eye-care to the people and bringing advanced technology to the nook-and-corner of the country. The new investments will be used to expand our Indian and international footprint and deploy latest technologies for super-specialty eyecare.”
Dr Agarwal’s Group of Eye Hospitals has been on a growth spree across the country, with more than 60 units added 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 hospitals in the next 3-4 years. The company notched a revenue of over Rs 700 crores in FY22.
Out of 200 additional hospitals, around 40 would be in African countries. Besides this, the group will also establish 500 Hub-and-Spoke model ‘2020 Agarwal Eyecare Clinics’ in Tier-II and Tier-III cities across the country. Each such clinic will cater to the needs of people living in 5 km radius and 10 such clinics would be attached with a nearby fully-equipped Dr Agarwal’s Eyecare Hospitals, Prof Amar Agarwal added.
After preliminary treatments, the patients can have tele-consulting from these clinics to the doctors sitting in main hospitals. The present strength of 500 Ophthalmologists and the staff strength will also be doubled from the present strength of 4,000, Dr Amar Agarwal added.
Addressing the media, Dr Adil Agarwal, CEO, Dr Agarwal’s Group of Eye Hospitals said, “We have had a tremendous journey together with ADV Partners and are grateful for their firm belief in our vision. We are very excited to partner with Temasek once again and are looking forward to a new journey with the TPG Growth team. Both these groups bring significant experience in healthcare, and we are excited to lean on their expertise to help scale our firm. 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 where we have an existing network presence of 15 hospitals. We will be deepening our presence in countries such as Kenya, Mozambique, Tanzania, and Ghana.”
Ankur Thadani, MD of TPG Growth said, “We are delighted to be working with Dr Agarwal’s Group of Eye Hospitals exceptional and experienced management team to drive the company’s growth, expansion, and service enhancements. 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 eyecare to a market that has a disproportionately high incidence of visual impairment.”
Suresh Prabhala, Co-Founder and Managing Partner, ADV Partners said, “We have had a great partnership with Dr Agarwal’s Group of Eye Hospitals over the past six years. We feel the Group is well poised to take advantage of the tremendous growth potential in the future and we wish the management and the Group continued success.”
Veda Corporate Advisors and Avendus Capital were the Financial Advisors to the company for this transaction.
Dr Ashvin Agarwal, Executive Director & Chief of Clinical Services, Dr Soundarya, Director of Medical Services, Dr Agarwal’s Eye Hospitals were also present at the press briefing.
