Chennai-based eye-care chain Dr Agarwal’s Healthcare has raised ₹270 crores from Government of Singapore owned investment firm Temasek Holdings. The current market capitalization of the healthcare firm at Bombay Stock Exchange stands at ₹183 crores.
The healthcare company will use the freshly raised capital to expand its footprint to an international level and improve its technology for super speciality eye-care. Upon completion of this expansion, Dr Agarwal Eye will engage 1,000 eye doctors and 5,000 employees up from the present 350 doctors and 3,000 employees.
(Dr.) Amar Agarwal, (MS, FRCS, FRC Ophth), Chairman, Dr Agarwal’s Group of Eye Hospitals, said, “The Agarwal Group is excited to welcome Temasek as an investor. We believe their expertise and support will help our company expand our network of clinics and operations to better meet the growing demand for affordable and quality eye care across India.”
Founded by Jaiveer Agarwal and Tahira Agarwal, the company dates back before independence to 1927. Earlier in 2016, ADV Partners invested ₹270 crores in the listed company which helped in its growth journey.
Dr Adil Agarwal, CEO, Dr Agarwal’s Group of Eye Hospitals said, “We are looking at adding anywhere between 50-75 hospitals to our network over the next 3-5 years with a major focus on metro cities as well as tier 2 and tier 3 towns. The expansion will be done through a mix of strategic partnerships, acquisitions and greenfield hospitals. Innovation and technology will continue to be at the forefront of our growth, and we will be investing more in cutting edge technology such as SMILE, FemtoLaser and Robotic Cataract Surgery across our centres. Our aim is to deliver high-quality eye care at affordable prices at people’s doorsteps.”
Veda Corporate Advisors, a leading mid-market investment bank advised the Company on the transaction. Veda also advised the Company on its previous round of investment from ADV Partners. The company recorded ₹40.6 crores in revenue last quarter (Oct-Dec 2018) which was 7 per cent lower than the previous quarter.
Mr Suresh Prabhala, Co-founder, ADV Partners, added, “ADV welcomes Temasek as a new partner in Dr Agarwal’s growth story; this investment will further strengthen the company’s leadership position in India’s eye-care ecosystem.”
Temasek is a global investor anchored in Asia with an India accounting for nearly 4% of it’s $308 billion portfolios as on 31 March 2018. Temasek’s healthcare portfolio in India includes investments in Medanta Medicity, Manipal Hospitals and HealthCare Global.