Dr. Agarwal’s Health Care draws Rs 1,050 Crore from TPG Growth & Temasek

Chennai-based Dr. Agarwal’s Health Care Ltd (DAHCL) has raised Rs 1,050 crore in funding from TPG Growth, the middle market, and growth equity platform of alternative asset firm Texas Pacific Group, and its existing investor Temasek.

The investment round will provide significant capital to fuel the Hospital’s expansion plans and pave the way for an exit for the existing investor, ADV Partners. Earlier in 2019, it raised over Rs 270 crores from Temasek.

Speaking on the fundraise, Prof. (Dr.) Amar Agarwal, Chairman of Dr. Agarwal’s Group of Eye Hospitals said, “We have had a great journey with our investor, ADV Partners, over the past 6 years. We are very excited to partner with TPG Growth and Temasek and look forward to the next phase of growth of our company. Backing from such world-renowned marquee investors further strengthens our ideology of providing quality eye care to the people and bringing advanced technology to far-reaching corners of the country. The new investments will be used to expand our Indian and international footprint and deploy the latest technologies for super-specialty eye care.”

Dr. Agarwal’s Group of Eye Hospitals has been on a growth spree across the country, with more than 60 units added to its network in the past five years alone. It plans to deploy capital to expand the current network of 105 hospitals to over 200 hospitals in the next 3-4 years. The company notched revenue of over ₹700 crores in FY22.

Commenting on the investment, Ankur Thadani, MD of TPG Growth said, “We are delighted to be working with Dr. Agarwal’s Group of Eye Hospitals’ exceptional and experienced management team to drive the company’s growth, expansion, and service enhancements. The healthcare sector in India is a core focus for TPG, and we are proud to be partnering with the number one private eye care chain in the country to continue delivering critical eye care to a market that has a disproportionately high incidence of visual impairment.”

“We have had a great partnership with Dr. Agarwal’s Group of Eye Hospitals over the past six years. We feel the Group is well poised to take advantage of the tremendous growth potential in the future and we wish the management and the Group continued success,” Suresh Prabhala, Co-Founder and Managing Partner, ADV Partners said.

Further speaking about the funding round, Dr. Adil Agarwal, CEO, of Dr. Agarwal’s Group of Eye Hospitals said, “We have had a tremendous journey together with ADV Partners and are grateful for their firm belief in our vision. We are very excited to partner with Temasek once again and are looking forward to a new journey with the TPG Growth team. Both these groups bring significant experience in healthcare, and we are excited to lean on their expertise to help scale our firm.”

“The new investments will enable us to double our network in the next 3 years and we will be pursuing acquisitions in key markets such as Maharashtra, Gujarat, Punjab, Karnataka, AP, and Telangana, etc. as well as a rapid greenfield expansion of our network across the country. Africa is another important geography for us where we have an existing network presence of 15 hospitals. We will be deepening our presence in countries such as Kenya, Mozambique, Tanzania, and Ghana,” Agarwal added.

Veda Corporate Advisors and Avendus Capital were the Financial Advisors to the company for this transaction.