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NephroPlus gets Rs 323-crore funding from Bahrain's Investcorp

IBEF:  November 26, 2019

NephroPlus, the dialysis service provider, has got a fresh funding of around US$ 45 million (Rs 323 crore) from Investcorp, the Bahrain based, Global alternative asset management company.

This is the biggest investment in the Hyderabad based start-up since its foundation that was about a decade ago. The company has expanded its presence to 20 states with 196 centres.

Its previous investors consist of venture capital firm Bessemer Venture Partners, SeaLink Capital and International Financial Corporation (IFC), the World Bank's investment arm.

According to Mr. Vikram Vuppula, Founder and CEO, the company had set up a diversification plan within the country and overseas markets in West Asia and South East Asia.

The funds of the latest round of investment will be invested into the expansion plans as well as the exit of one of the original three investors which is SeaLink Capital Partners of Herman Hajarnavis, that came in around three years ago with Rs 90 crore (US$ 12.88 million) investment.

"We will use the funds to grow our India business through select acquisitions as well as expansion of centres and fresh beginnings in overseas markets in Middle East and South East Asia", said Mr. Vuppula.

He also added that the company plans to set up joint ventures and signing operations and maintenance contracts too.

NephroPlus, recorded a turnover of Rs 200 crore (US$ 28.62 million) during 2018-19 and expects to end the current fiscal at around Rs 270 crore (US$ 38.63 million), said Mr. Vuppula.

The company was founded by Mr. Vikram Vuppula, an ex McKinsey and Kamal Shah, who, in 2010, was personally fighting kidney disease. The company has reached a remarkable dialysis network in around 125 locations, providing a cost effective and ease of use dialysis to patients.

The deal act as a big boost in the ecosystem and investment in healthcare sector in Hyderabad, particularly for start-up's and entrepreneurs, especially with Hyderabad boasting of T Hub, ICICI Knowledge Park, Genome Valley and a rapidly growing culture of entrepreneurship.

"It's been a company that we've been following from the sidelines for some time now…In terms of breadth and width of delivery, NephroPlus has, possibly, the largest reach in India…We think, given our experience in healthcare globally, there are a lot of areas where we can add value," said Mr. Gaurav Sharma, co-head of private equity at Investcorp India.

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