Healthcare-focused private equity investor Quadria Capital will invest up to Rs 1,300 crore (around $158 million) in GSK Velu-led eyecare chain Maxivision Eye Hospital in two tranches.
The PE fund will make an initial investment of about Rs 600 crore ($73 million) for a minority stake followed by an additional stake worth Rs 700 crore ($85 million) in the second tranche.The development was first reported by VCCircle last month. The report said that the eyecare hospital was in the advanced stages to raise funds from PE investors, with Quadria Capital being one of the frontrunners.
The fund infusion will fuel Maxivision’s plans to scale its operations especially in tier-II and tier-III markets, a press statement said.
“The market for eyecare in India is expected to grow at over 12% per year over the next five years. With Quadria’s support, we will be able to meet this growing demand for affordable, accessible and high-quality eyecare across India,” said Sudheer VS, chief executive officer of Maxivision.
Veda Corporate Advisors, a mid-market focussed investment bank, assisted Maxivision on the transaction.
According to an earlier report by VCCircle, the eyecare chain has launched joint ventures in Hyderabad and Rajkot and made a greenfield entry into Tamil Nadu. It plans to open more hospitals in Telangana, Andhra Pradesh, Tamil Nadu, and Gujarat by the end of the current financial year.
The chain is also finalising additional joint ventures in Telangana, Andhra Pradesh, Maharashtra, Gujarat, and Karnataka with reputed doctors in those regions.