Kauvery Hospitals receives $70 million investment from private equity fund managed by IIFL AMC

Dr. Manivannan (left) Founder and Managing Director and Dr. Chandrakumar, (right) Founder and Chairman of Kauvery Hospitals Group. Photo: Special Arrangement

Chennai-based Kauvery Hospitals has raised equity funding of $70 million from private equity (PE) fund managed by IIFL Asset Management Limited for a minority stake.

The investment holds significance in Kauvery Hospitals’ next phase of growth which is likely to move towards an IPO tentatively in the next 3 years. This comprises augmenting capacities in Chennai and Bangalore, along with expansion in chosen clusters within Tamil Nadu and Karnataka.

This also marks IIFL PE’s maiden investment in the multi-specialty hospitals segment and is also amongst the few minority investments in the multi-specialty space in India in the recent times.

“Kauvery is currently in the midst of a fast-paced expansion program, as it plans to reach 1,000 beds each by 2025 in Chennai, Bengaluru and Tamil Nadu clusters. This ramp-up would mean that the network shall comprise 15 hospitals spread across 7 cities in South India, with 3,000+ beds and shall likely go for an IPO, in the next 36 months,” Chandrakumar, Founder and Chairman of Kauvery Hospitals Group said.

“We look forward to having IIFL PE as a valued partner and leverage from its expertise of growth investments within and outside of healthcare,” Manivannan, Founder and Managing Director of Kauvery Hospitals said.

o3 Capital acted as the financial advisor and Shardul Amarchand Mangaldas & Co. acted as the legal advisor to Kauvery Hospitals while Jerome Merchant + Partners acted as the legal advisor to IIFL AMC on this transaction.