Cloudnine to open 10 hospitals over next 2 years

Mumbai: Cloudnine Hospitals, a leading maternity hospital chain, plans to open 10 new facilities over the next two years with an investment of Rs100 crore each year, managing director Rohit M.A. said.

Started in 2007, Bengaluru-headquartered Cloudnine is India’s first maternity specialty hospital chain. It currently operates 19 hospitals at various locations in south, west and north India. It is present in Bengaluru, Chennai, Pune, Mumbai, Gurgaon and Chandigarh.

“We will add about 4 to 5 units every year in 2018 and 2019. Each unit will consume around Rs20 crore,” Rohit said.

The company expects to clock a revenue of Rs400 crore in the current financial year, he said.

“We have grown at about 35-40% CAGR (compounded annual growth rate) and expect that we will be able to achieve the same over the next 2 years,” he added.

The hospital chain is backed by private equity investors Matrix Partners, Sequoia Capital and TrueNorth.

The company is likely to go for the next round of funding in 2018, which will provide exit to early investor Matrix Partners and help in further expansion, Rohit said.

Unlike multi-specialty large hospitals that take about five years to mature and break even, Cloudnine hospitals, being a single specialty, will mature within 2 years, he said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.