ADV commits $45m to Indian hospital chain, Invascent exits
ADV Partners has invested $45 million in Indian hospital chain Dr. Agarwal's Healthcare, providing an exit for existing backer Invascent Capital.
Dr. Agarwal's will use the capital for the expansion of its publicly listed eye hospital chain, Dr. Agarwal's Eye Hospital. The chain plans to open locations in new cities in India through a mix of joint ventures and greenfield hospital construction, with a view to entering additional markets overseas during the next four years.
Currently Dr. Agarwal's has 45 eye hospitals in India and 14 in Africa. It plans to enter the United Arab Emirates, Sri Lanka, Vietnam and the Philippines.
In its most recent annual report, the company recorded revenue of INR1.18 billion for the 12 months ended March 2015, up from INR1.13 billion the year before. Profit over the same period rose from INR37 million to INR54 million.
According to AVCJ Research, Invascent acquired its stake in Dr. Agarwal's in 2012 for about $12.5 million through the Evolvence India Life Sciences Fund. The company has not disclosed the amount that Invascent will receive for its stake, but a statement quoted in VC Circle called it a "healthy return on its investment."
ADV made its investment from its debut Asia fund, which closed in September at $545 million. The firm seeks growth and special situations opportunities in mid-market companies. Its key target markets are China and India; Southeast Asia and developed Asian markets including Australia are addressed on an opportunistic basis.
India's eyecare segment has seen several investments in the past year, including a INR400 million ($6.4 million) commitment by Asia Healthcare Fund and Ventureast to retail optician chain Eye Gear Optics India and a $10 million round for Eye-Q Vision led by the International Finance Corporation. Interest in the sector has been fueled by a perceived need among India's low-income patients for affordable eyecare options.
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