Indian eye hospital chain Dr. Agarwal's Health Care has raised $80 million from existing investors Singapore's Temasek and U.S.-based TPG.
The fundraise will provide significant capital to fuel the company’s expansion plans. The company plans to deploy capital to expand the current network of 150+ centres to over 300+ centres in the next 3 years. The company has new projects in development in Mumbai, Punjab, central and northern India, among others. The company continues to achieve growth and success in its key markets including Tamil Nadu, Karnataka, Maharashtra, Gujarat, Punjab, Telangana, Andhra Pradesh, Kerala, and West Bengal.
Along with the expansion of the network, the company will also be investing in technological advancements for vision correction such as SMILE, Laser Cataract Surgery, and for advanced technologies to treat Vitreo-retinal diseases such as Diabetic Retinopathy and Age-related macular degeneration.
Shares of Dr. Agarwal's Eye Hospitals rose as much as 10.3% after the announcement, before paring some gains to last trade up 4.2%.
Prof. (Dr.) Amar Agarwal, Chairman, Dr. Agarwal’s Group of Eye Hospitals said, “Backing from investors such as TPG and Temasek, further affirms our faith in staying true to our vision of being a truly global healthcare organization which imbibes the best practices from different sectors while relying on continuous innovation and cutting-edge technology to serve our patients. The new investments will be used to expand our Indian and International footprint, along with acquiring the latest technologies for super-specialty eyecare."
“We continue to be excited about the growth potential of the company and share the company’s vision of providing world class clinical outcomes along with compelling financial performance. Dr. Agarwal’s has the potential to become the global leader in eye care segment," said Ankur Thadani, Business Unit Partner in TPG Growth.
Dr. Adil Agarwal, CEO, Dr. Agarwal’s Group of Eye Hospitals added, “The investment will be used to support the business through its next phase of growth, including the acquisition of small hospitals and chains as well as greenfield expansion of our network. We are looking at doubling our network in the next 3 years and are also looking to expand aggressively in Maharashtra, Punjab, Delhi, Uttar Pradesh, and central India besides penetrating deeper into our existing markets. We will also be establishing over 100 primary eye clinics in tier 2 and tier 3 towns in the next couple of years. Africa is another important geography for us. We have an existing network presence of 15 hospitals, and we will be deepening our presence in Kenya, Zambia, and Tanzania and look to add 10 centres across these countries."
Veda Corporate Advisors was the financial advisor to Dr. Agarwal’s Health Care Ltd. on this transaction.
Dr. Agarwal’s Group of Eye Hospitals started as a single facility in Chennai in the year 1957. The group is led by Chairman Prof. (Dr.) Amar Agarwal. He is a pioneer in the field of eyecare, known for several ground-breaking surgical innovations such as Glued IOL, PDEK, and PhakoNit. Dr. Agarwal’s Eye Hospitals now has a total network presence of 151 centres (140 hospitals and 11 eye clinics) spread across India and Africa. The Group’s presence spans 10 countries and over 14 states in India.