Fidelity, Somerset back India's Cygnus Medicare
Fidelity Growth Partners and existing backer Somerset Indus CapitalFund have invested INR600 million ($9.7 million) in Cygnus Medicare, an Indian operator of specialty hospitals in Delhi and Haryana.
According to Live Mint, the deal will see Fidelity - which invested INR540 million - pick up a 28% stake in Cygnus Medicare, valuing the company at around INR1.9 billion. Somerset contributed INR60 million to the round and will see its stake rise to 23%.
Somerset previously invested in the company in April last year. The size of the commitment was not diclosed but Somerset typically invests about $5 million per transaction.
Cygnus was set up in 2010 and merged with Altius Healthcare in 2013. It operates nine hospitals, which have around 550 beds in total. The new capital will be used to add 10 more hospitals to its network over the next two years, taking the bed count to 1800.
The Cygnus business model reduces costs by outsourcing capital-intensive functions that need specialized equipment and leasing facilities. The focus is on running operating theaters, intensive care and outpatient units, wards and nursing. For the financial year ended March 2014 it reported revenues of INR680 million.
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