India Value Fund invests Rs 400 crore in Cloudnine

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Updated: December 25, 2015 1:18:27 AM

Private equity fund India Value Fund Advisors (IVFA) has picked up a significant minority stake in Cloudnine, a specialist in women and child healthcare, for Rs 400 crore, thereby joining existing investors such as Matrix Partners India and Sequoia India, which had invested in its initial phase of growth.

Private equity fund India Value Fund Advisors (IVFA) has picked up a significant minority stake in Cloudnine, a specialist in women and child healthcare, for Rs 400 crore, thereby joining existing investors such as Matrix Partners India and Sequoia India, which had invested in its initial phase of growth.

This would be the third round of fund raising for Cloudnine. The company had raised R100 crore ($16 million) in its second round led by Sequoia India and existing investor Matrix Partners India in 2013. Matrix had invested R45 crore in the company way back in 2011.

Following the investment, Siddharth Dhondiyal, managing director of IVFA, and Sanjay Arte, partner at IVFA, have joined Cloudnine’s board as directors.

Cloudnine is IVFA’s eighth investment in the Indian healthcare industry with prior investments in Care Hospitals, Biocon, TTK Healthcare, DM Healthcare, Manipal Hospitals, Trivitron Healthcare and Syngene. Cloudnine is a multi-city chain of women and child-focused hospitals specialising in obstetrics, gynaecology, fertility and neonatology. It was established in 2007 by Kishore Kumar, renowned neonatologist and chairman of the group, along with Scrips N Scrolls India Private Ltd, with the aim of providing quality newborn care. From a single hospital in south Bengaluru, Cloudnine has expanded its operations to 10 hospitals spread across Bengaluru, Chennai, Gurgaon, Mumbai and Pune.

According to Dhondiyal, “We have been closely following the evolution of new healthcare delivery models in India and tracking the growth of Cloudnine over the last few years. We are very excited to partner with Matrix, Sequoia, and the founders and the management team of the company to support the next phase of the company’s growth.”

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