Investcorp closes $45 million deal with India based NephroPlus

NephroPlus plans to build a network of dialysis centres in India and in GCC region

Since 2001, Investcorp has invested more than $1.5bn in technology businesses worldwide. Courtesy Investcorp

Investcorp, the Bahraini entity that counts Mubadala Investment Company as its biggest shareholder, closed a $45 million (Dh165.2m) funding deal with India-based Nephrocare Health Services (NephroPlus).

NephroPlus has the largest network of dialysis centers in India, hosting more than 140,000 dialysis sessions per month in 196 locations across more than 115 cities.

“NephroPlus meets every criteria Investcorp looks for in an investment: outstanding founders supported by a solid team, impeccable clinical quality adherence and market leadership focused on providing access to high quality services at an affordable price point across a large and growing addressable market,” Gaurav Sharma, Investcorp India's co-head of private equity, said in a statement.

NephroPlus had already received earlier investment from Bessemer Venture Partners and IFC, the development finance arm of the World Bank. They will retain stakes in the company alongside Investcorp, but another early investor, SeaLink Capital, is exiting the company.

Primary capital raised in this round will be used for organic growth in India and taking the proven business model of NephroPlus to other markets, starting with South East Asia, Investcorp said. NephroPlus aspires to build a regional network of dialysis centres spanning India and select countries in Asia and the GCC.

“Over the last decade, NephroPlus has refined its high quality but cost-effective model to become the most widespread health care delivery network in India. Now is the time to grow beyond India whilst also cementing our leadership position in India with continued growth momentum,” said Vikram Vuppala, founder and chief executive of NephroPlus.

In India, Investcorp targets investment opportunities across three key sectors including healthcare, financial services and mass-market consumer. Other than NephroPlus, the Investcorp Private Equity Fund II has so far invested in six companies - namely InCred, ASG, Zolo, Citykart, Intergrow Brands and Bewakoof.com.

Investcorp posted a 5 per cent increase in full-year profit on higher fee income and record deal placement activity in the 12 months to June 30. Net income for the period rose to $131m year-on-year despite an economic slowdown and rising trade and geopolitical tensions.

Earlier this month, Investcorp bought a portfolio of 126 industrial properties in the US for $800m.