Bangalore-based Kids Clinic India Pvt Ltd, which provides maternity and infant care under the brand Cloudnine, has raised Rs 100 crore ($16 million) in second round of funding led by Sequoia Capital in which existing investor Matrix Partners India also participated, as per a press statement. Matrix had invested Rs 45 crore in the company in 2011.
The news that Cloudnine is close to raising Series B funding was first reported by VCCircle.
The investment will support Cloudnine in accelerating expansion into the southern and western regions of India. Currently, Cloudnine has five healthcare facilities in Bangalore and plans to set up 10 more centres in the targeted markets in the next two years. It also said it is launching its new facility in Chennai.
“Cloudnine is a leader in the premium mother and childcare services market in India. We are very impressed with their world class healthcare services delivered in a consumer friendly model, which has resulted in the strong market position they have created in the specialty healthcare segment,” said GV Ravishankar, managing director, Sequoia Capital India Advisors.
“Cloudnine has achieved and sustained a zero per cent maternal mortality rate and a 99.72 per cent survival rate for babies across 16,000 deliveries. Our IVF success rates, too, are amongst the highest in the country at 42.31 per cent,” said Dr Kishore Kumar, chairman and managing director, Cloudnine.
In an earlier interaction with VCCircle, Kumar had said the company plans to invest around Rs 300-450 crore to build 15 hospitals in two to three years.
“We need Rs 100 crore to start our expansion. By the time we start two-three more hospitals, their revenues can also be used for this purpose,” Kumar had said.
Kids Clinic India, which runs Cloudnine in partnership with property developer Scrips N Scrolls India, will deploy the capital raised in the next four to six months, according to Kumar.
The players who are active in mother and child space include Acumen Fund-backed Lifespring Healthcare, Peepul Capital-backed Motherhood and Spring Healthcare Fund-backed Oyster and Pearl Hospital.
(Edited by Joby Puthuparampil Johnson)