NEW DELHI: Sterling Accuris Wellness Pvt Ltd, a pathology-focused, diagnostic lab chain, on Monday said it has signed an agreement to raise Rs250 crore ($34 million) of equity capital from a fund managed by Morgan Stanley Private Equity Asia.
Veda Corporate Advisors advised the company and its promoters on the transaction.
Sterling Accuris, which started operations in 2016, has over 1,000 employees and operates around 150 labs and collection centres across four states - Gujarat, Delhi, Rajasthan, and Madhya Pradesh. The company aims to achieve a revenue of around Rs250 crore in FY22.
During the last three years, the company has significantly expanded its lab network, invested in digital technologies and built a strong backend infrastructure to offer a wide variety of routine and specialised tests with quick turnaround times.
Proceeds from this fund raise will help the company penetrate deeper in existing markets and enter new geographies.
Sterling Accuris is promoted by Girish Patel who is also chairman emeritus of Sterling Hospitals, the largest chain of corporate hospitals in Gujarat.
“As diseases become more complex, the need for their quick and accurate diagnosis through testing will become more critical. This will lead to increased customer preference towards organised pathology lab networks. Over the last five years, Sterling Accuris have built a strong business in the markets we operate in and the growth capital infusion from a seasoned investor like Morgan Stanley Private Equity Asia will help the team accelerate the execution of our expansion plan," said Patel, chairman, Sterling Accuris.
“The diagnostic services space in India has seen a fundamental change in consumer behaviour in recent years with improving health awareness and rising preference for organised chains. A few strong companies have capitalised on this by adopting new technologies, expanding into new geographies and maximizing customer convenience. We believe that Sterling Accuris is well placed to become a leading player in the diagnostic services industry across India given its management strength, deep network and its focus on B2C diagnostics and new testing technologies. Healthcare is a core focus for Morgan Stanley PE and this will be the third investment in the Indian healthcare space," said Arjun Saigal, managing director and co-head of Morgan Stanley Private Equity Asia in India.