Health Care Attracts PE Investors

Back in 2007, Dr. Ajay Kumar along with Rajat Goel ran an eye care center called ‘Eye Q’ in the small town of Rewari in Haryana with the aim to provide eye care to the people at affordable prices. They admit that they had a hard time starting off with the high-growth and capital-intensive business. Since banks refused to lend them money without collateral, the duo began to look up to Private Equity funds as a potential source for raising capital for the noble cause. 

Their decision would bear positive results in just three years. In 2010, Eye Q was able to raise a total of Rs.10 crore. They raised an additional capital in two more rounds of PE funding. 

They raised Rs. 45 crore in 2011 followed by an inflow of Rs. 25 crore worth of private equity funds that they were able to accumulate in the beginning 2013.

Raising capital through PE Funds in India has enabled the eye care center to extend the socially-driven initiative to other parts of the country. As of today, it has 28 centers spread across the suburban India. Some of these smaller towns and cities include places like Hisar, Surat, Meerut, Jhansi and Rohtak. 

Eye Q’s story is proof that PE Funding has in a way helped masses to get proper eye care at affordable However, the phenomenon is not new to the sector. Eye Q is not the only health care center that has drawn its capital from private equity funds. PE investments in the space have been on a rise off late. The year 2011 saw 29 PE investments in the sector which scaled up to 45 and 71 during the years 2012 and 2013 respectively.

It has proved to be profitable for the investors too who have the health care sector under their scanner.

For more Details http://www.everstonecapital.com/