Tenet Diagnostics announced on Monday that it secured funding in a round led by healthcare-focussed private equity firm Tata Capital Healthcare Fund, as the diagnostics chain expands its footprint and services.
The Hyderabad-headquartered company, which offers radiology and pathology, raised $30 million (around Rs 287 crore) led by Tata Capital Healthcare Fund III and Swiss impact investor Blue Earth Capital, the company said in a statement. The two investors invested in Tenet Medcorp Pvt Ltd, which operates Tenet Diagnostics, for an undisclosed stake.
“The investment will help us accelerate our mission, deepen our footprint across India and bring reliable diagnostics to more communities who need it most,” said Sricharan Devineni, managing director, Tenet Diagnostics.
Veda Corporate Advisors acted as the exclusive financial advisor to Tenet Diagnostics on the deal.
The development was first reported by VCCircle. In May, Tata Capital Healthcare Fund was in the final stages of investing Rs 250-300 crore (around $26-32 million) in Tenet Diagnostics. Tenet was seeking a valuation of roughly Rs 1,000-1,200 crore (around $107-126 million) for the fundraise.
Tenet Diagnostics was founded in 2018 by Devineni. The company offers a wide spectrum of services across radiology, pathology and nuclear medicine with over 35 centres across 14 states, and over 3,000 super speciality tests. Its presence spans states such as Bihar, Jharkhand, Karnataka, Maharashtra, Andhra Pradesh and Uttar Pradesh, in addition to its home state of Telangana.
“Diagnostics is increasingly becoming a consumer-driven category where patients value speed, transparency and accuracy. Under Sricharan’s leadership, Tenet has built one of the fastest-growing integrated diagnostics platforms in India, a model still rare at this scale," remarked Visalakshi Chandramouli, Managing Partner, Tata Capital Healthcare Fund.
Meanwhile, Tata Capital Healthcare Fund is also eyeing exits from companies in the diagnostics space. This includes Anderson Diagnostic in Chennai and Chandigarh-based Atulaya Healthcare, VCCircle reported in May.
Diagnostics has seen growing investor and strategic interest recently, with many viewing it as a consumer-driven category. Earlier this year, House of Diagnostics raised investment from asset manager 360 ONE Asset to scale up its diagnostics platform and expand its footprint in urban markets.
In April, PE-backed Redcliffe Labs also onboarded the World Bank's private sector investment arm, the International Finance Corporation (IFC) as a backer. Late last year, Vixar, formerly Arpwood Partners, acquired a controlling stake in Bengaluru-based dAlgnostiX Services Pvt Ltd.
The space is also seeing a wave of consolidations: GSK Velu's Neuberg is acquiring Mumbai-based NM Diagnostics and closing in on a New Delhi-based diagnostics chain, while Redcliffe Labs acquired Pune-based Megavision Diagnostics Center and Udaipur-headquartered Medicentre Sonography and Clinical Lab.