7 May 2024
Investcorp, a leading global alternative investment firm, announced a partial exit from its stake in NephroPlus, Asia’s largest dialysis service provider. This move is part of a $102 million funding round led by Quadria Capital. Despite the partial exit, Investcorp retains a significant stake in NephroPlus, reinforcing its commitment to NephroPlus’ continued growth. This partial exit underscores another successful chapter in Investcorp’s journey of nurturing high-growth potential companies in India and creating value for its investors.
Investcorp initially invested $45 million in NephroPlus in November 2019, when the company operated approximately 180 centres in India. NephroPlus has expanded its network to 404 centres, including over 20 centres in the Philippines and Uzbekistan. Quadria Capital’s investment includes a combination of primary capital infusion and a secondary stake purchase from existing investors, including Investcorp, Bessemer Venture Partners, IFC, and IIFL Private Equity.
Gaurav Sharma, Partner & Head of India Investments at Investcorp, commented: “Our partnership with NephroPlus exemplifies Investcorp’s strategic investment philosophy, which is centered on identifying and scaling businesses with substantial growth potential. This is a rare example of backing an Indian healthcare delivery company to become a global player with a carefully thought-through international expansion. This has been made possible because of the company’s world-class execution in delivering the highest quality dialysis experience in all our markets. We continue to maintain a significant minority stake and the strong conviction that the best years of NephroPlus are yet to come.”
The primary capital raised in this round will be utilised towards organic growth in India and further expansion in international geographies. In 2021, NephroPlus raised $24 million (₹180 crore) in a Series E funding round led by IIFL Asset Management and existing investors Investcorp and BVP, further supporting its growth initiatives.
Founded in 2010 by Vikram Vuppala and Kamal D Shah, NephroPlus is headquartered in Hyderabad, India, and stands as Asia’s largest dialysis service provider. The company has a commanding presence in India, the Philippines, and Uzbekistan. In India, NephroPlus operates over 400 dialysis centres across more than 200 cities, delivering over 200,000 dialysis sessions each month and maintaining a market leadership position. Over the past three years, NephroPlus has significantly expanded its reach beyond India. It entered Philippines by acquiring the existing chain, Royal Care Dialysis Centers Inc. (RCDC), and forayed into Uzbekistan by winning a public-private partnership (PPP) bid, competing against global healthcare giants. This expansion includes the operationalisation of Asia’s largest dialysis centre in Tashkent, marking a milestone in its mission to provide high-quality, accessible dialysis services across Asia.
In India, Investcorp is a leading investor in mid-market companies across asset-light (private equity) and asset-heavy (real estate & infrastructure) sectors. Within private equity, Investcorp targets opportunities across consumer and retail, healthcare, financial services, B2B, and technology sectors. Its investments in India include Global Dental, Wakefit, Canpac, Xpressbees, Citykart, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure and NDR Warehousing.