facebook-page-view
Advertisement

Sequoia-backed Moolchand Healthcare unveils $93M expansion plan

By Bhawna Gupta

  • 11 May 2012
Sequoia-backed Moolchand Healthcare unveils $93M expansion plan

Delhi-based Moolchand Healthcare is planning to invest Rs 500 crore ($93 million) to expand its hospital network through a mix of organic expansion and acquisition of existing assets. The expansion will be part-funded from Rs 100 crore ($18.5 million), raised from the venture capital firm Sequoia Capital.

Although the firm has disclosed the fundraising only now, the funding took place a few months ago. VCCircle was the first to report the deal.

The healthcare firm will expand its current facility to more than 1,000 beds besides adding six specialty hospitals. In the first phase of this plan, 400 additional beds will be commissioned by 2014. It will also add new services including fertility, diagnostics and renal care.

Advertisement

In the healthcare space, Sequoia Capital focuses on startups across diagnostics, genetics, lab and patient services, and also targets those involved in product development and enabling technology. Some of its investments in this space include oncology and critical care pharma company Celon Labs, rural hospitals network Glocal, analytics, cost containment and claims management solutions provider SCIOinspire, health, accident and related insurance firm Star Health and Vasan Health Care, which runs a chain of eye care clinics.

Hospitals have been attracting big investments with PE major Advent International investing $105 million in CARE Hospitals in one of the largest PE deals in the healthcare sector in the last five years. In another large deal earlier this year, Olympus Capital Asia Investments Ltd invested over Rs 500 crore for a significant minority stake in India Value Fund-backed DM Healthcare Pvt Ltd. DM Healthcare is a Kochi-based healthcare services provider with operations in India and the Middle East.

Sequoia Capital is one of the more prolific VC investor in India and in 2011, it had invested across sectors like healthcare, food & beverages, engineering and infrastructure in the country.

Advertisement

Share article on

Advertisement
Advertisement