Here is the third venture capital/PE deal in affordable healthcare services business. Seedfund, an Indian early-stage venture capital firm, and Aavishkaar India Micro Venture Capital Fund, have made an undisclosed joint equity investment in Vaatsalya Healthcare Solutions Pvt. Ltd, a healthcare services startup.
Earlier, Narayana Hrudayalaya, a Bangalore-based hospital company, sold 25 per cent stake to private equity arms of global financial services firms American International Group Inc. (AIG) and JPMorgan for Rs 400 crore ($100 million). Narayana Hrudayalaya, although not necessarily in the social healthcare space as Vaatsalya, its business model is inclined towards to providing affordable, super specialty healthcare.
Similarly, in March this year, New York based Acumen Fund, a nonprofit venture fund, and Hindustan Latex (HLL), formed a JV called LifeSpring Hospitals Pvt Ltd, which will create a chain of small hospitals (20-25 beds) focused on providing low-income clients in India with widespread access to maternal and child health care services. Acumen Fund has also provided $1.5 million funding to “DIAL 1298 FOR AMBULANCE”, a Mumbai-based ambulance startup.
As for Vaatsalya, it already has hospitals in Hubli, Gadag and Karwar in North Karnataka. The healthcare firm plans to set up a hospital network in rural and semi-urban areas across the country that offer primary and secondary care services. The current investment will help Vaatsalya expand its chain, according to Dr. Ashwin Naik, Founder and CEO, Vaatsalya.
Although India’s metros and semi-urban areas are witnessing the mushrooming of corporate healthcare chains, there is a large gap in basic healthcare services. The first Vaatsalya Hospital was set up in 2005. Bharati Jacob, Partner, Seedfund, and P. Pradeep, Partner, Aavishkaar, will join the Vaatsalya Board.

Posted on 04/15/08, 9:01 AM
in: Deals, Early Stage/Angel, Venture Capital
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