Diabetes care chain Dr Mohan’s raises Series A funding

Diabetes care chain Dr Mohan’s raises Series A funding

By Joseph Rai

  • 13 Apr 2017
Diabetes care chain Dr Mohan’s raises Series A funding
Credit: Thinkstock

Diabetes care provider Dr Mohan’s Diabetes Specialities Centre has raised its first institutional funding from impact investment firm Lok Capital Pvt. Ltd and private equity firm Evolvence India Fund, said media reports.

Dr Mohan’s, which was founded in 1991, has received $10.23 million (about Rs 66 crore) in a Series A round, business publications reported citing V Mohan, the founder and chairman of the company.

According to Mohan, it will use the funds to expand its footprint across India – from the existing 25 centres to 100 in four years – both in metros and in tier II cities.


Dr Mohan’s has 15 centres in Tamil Nadu, including eight in Chennai, four centres in Karnataka, three in Telangana and one each in Andhra Pradesh, Bhubaneswar and Delhi. It will soon open centres in Kerala and Lucknow, Mohan told Mint.

When contacted, Sagar R. Agarwal, Director, Evolvence India Fund, confirmed the development. “Dr Mohans has been a pioneer in diabetes research and quality care in India for over a couple of decades now. It has built a strong team of professionals, state-of-the-art centres, and processes and systems, which could be expanded to pan India with the right amount of capital and support,” he said, but did not disclose the amount committed by Evolvence India Fund.

Email queries to Dr Mohan’s and Lok Capital did not elicit any immediate response.


Diabetes care gains traction

Diabetes-focused healthcare centres have been attracting investors of late due to rising cases of lifestyle disorders. According to International Diabetes Federation, the number of diabetes cases in India is expected to cross 100 million by 2030, from about 70 million at present.

In November 2016, Curo Healthcare Technologies Pvt. Ltd, which runs a digital diabetes management programme under the Life in Control brand, had raised funding from US-based venture capital firm RoundGlass Partners.


In 2014, Bhubaneswar-based Kanungo Institute of Diabetes Specialties (KIDS) had raised Rs 18 crore from SIDBI Venture Capital’s Samridhi Fund.

In 2013, Lifespan Wellness Pvt. Ltd had received advertising money commitment worth $35 million from Brand Capital, the ad-for-equity private investment arm of media giant Bennett Coleman & Co Ltd.

Apollo Sugar Clinics Ltd, which is part of multispecialty hospital chain Apollo Hospitals Enterprises, also runs diabetes clinics in the country.


Lok Capital

Lok Capital, which is in the midst of raising its third fund, focuses on growth-stage investments in financial services, healthcare, agriculture and livelihood sectors. The third fund will invest $2-10 million.

It had marked the first close of the third fund in 2016 at $40.5 million. Its total assets under management stands at over $125 million.


The investment firm had recently made a fresh investment in Suryoday Small Finance Bank Ltd.

Its healthcare portfolio includes Disha Medical Services Pvt Ltd, an eye-care chain, wherein former Infosys CEO Nandan Nilekani had also pumped in money.

Evolvence India Fund

Evolvence India Fund is sponsored by Evolvence Asset Management – a strategic partnership between Evolvence Capital and GoldPoint Partners, which is an affiliate of New York Life Investment Management.

The fund typically invests $5-15 million in healthcare, education, consumer retail, financial services, agriculture and communication, media and entertainment companies, says the company website.

Evolved India Fund is currently investing out of its second fund. Its first fund invested in eight companies, which include Emaar MGF Land Ltd and Eastern Silk Industries Ltd.

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