NewQuest buys secondary position in India hospital chain

Neither the size of the deal nor the identities of the exiting investors were disclosed.

Cloudnine – also known as Kids Clinic India – has received several rounds of funding, according to AVCJ Research. Matrix Partners India committed INR450 million ($10 million) to the company in 2011 and re-upped two years later in an INR1 billion round led by Sequoia Capital India. True North and the existing investors put in INR4 billion in 2015. True North added $9 million on its own in 2018.

Founded in 2006, Cloudnine is a leading provider of maternal, childcare, and fertility care. It is headquartered in Bengaluru and has 16 facilities across Gurgaon, Noida, Chandigarh, Panchkula, Chennai, Mumbai, and Pune, with a staff of around 3,000. The hospital chain has seen more than 100,000 births since its inception.

“We are excited to be part of the journey as Cloudnine enters its next phase of growth. We believe that the healthcare segment is on the cusp of high growth and Cloudnine is well-positioned to consolidate its market-leading position under the stewardship of Raviganesh Venkataraman,” said Amit Gupta, partner and head of India and Southeast Asia at NewQuest, in a statement.

The private equity firm – now majority-owned by TPG Capital – made the commitment from its fourth fund, which closed at $1 billion in late 2019. Other recent investments in India include animation studio Cosmos-Maya, which was bought from Emerald Media, an Asian media platform backed by KKR, and personal loans start-ups KreditBee.

In February, KreditBee secured $75 million in Series C funding, which included primary and secondary capital. The company reportedly cut back its Chinese investors from 40% to 10%. It points to a broader secondary opportunity as mounting India-China tensions, as well as tougher regulatory requirements for Chinese groups investing in India, prompt a revision of cap tables.

Allegro Advisors served as exclusive financial advisor to Cloudnine and its shareholders. NewQuest received legal counsel from Induslaw, while Alvarez & Marsal and Dhruva Advisors worked on the due diligence and tax issues, respectively. Envint Global was the environment, social and governance (ESG) diligence advisor.

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• Topics
• South Asia
• Secondaries
• Healthcare
• India
• NewQuest Capital Partners
• Matrix Partners
• True North
• Sequoia Capital