General Atlantic and Kedaara Capital invest Rs 1,500 crore in ASG Eye Hospitals

In one of the largest PE deals in eye care, General Atlantic and Kedaara Capital have invested Rs 1,500 crore in ASG Eye Hospitals.

General Atlantic and Kedaara Capital will join existing operations-focused healthcare investor Foundation Holdings in supporting and fuelling ASG Eye Hospitals’ growth towards their mission to become one of Asia’s leading eye hospital chains.

The transaction is expected to pave the way for an exit for , who invested in the company in 2017, along with funding expansion plans and consolidating ASG’s position as a leading eye care delivery platform with pan-India reach.

Over the last 3 years, ASG has doubled its number of hospitals and tripled its revenue. ASG Eye Hospital has over 50 specialty eye hospitals across 16 states in India, Uganda, and Nepal. ASG plans to establish a network of over 200 hospitals within the next 36 months.

“This cornerstone investment is a testament to the strength of our business model and further reinforces ASG Eye Hospitals’ continued success at attracting talented investors,” said Dr Arun Singhvi, chairman and managing director and Dr Shilpi Gang, co-founder of ASG Hospital Pvt.Ltd.

ASG was founded in Jodhpur, Rajasthan by ophthalmologists Dr.Singhvi and Dr.Gang.

“With the imminent planned acquisition in South India and our high-quality M&A pipeline of regional players spanning keymarkets across the country, we are excited to welcome and partner with two highly regarded and forward-thinking investors at this transformational inflection point in the history of ASG

Eye Hospitals,” said Aakash Sachdev, co-founder and managing director, Foundation Holdings

“General Atlantic has followed ASG Eye Hospitals for several years, and we are strongly encouraged by Drs. Singhvi and Gang’s commitment to clinical rigor and quality, grounded in academic research and training,” said Shantanu Rastogi, Managing Director at General Atlantic

Nishant Sharma, CIO & managing partner of Kedaara Capital said, “ASG has built a unique replicable model to provide quality and affordable eye care to underserved masses across India, driven by its culture of clinical excellence and entrepreneurial passion.”

According to the Lancet Global Health Commission’s report on global eye health, 62 million people in India are estimated to be visually impaired, with 8 million being afflicted with blindness. Cataract and diabetic retinopathy are the major causes of ocular morbidity and blindness if not treated in time.

With timely medical intervention the number of complete vision loss cases could be reduced dramatically. There is also a shortage of ophthalmologists and optometrists in smaller cities, towns, and rural areas – India has only an estimated 25,000 ophthalmologists and only 45,000 optometrists against a required 125,000.

Expanding infrastructure, training eye specialists and better utilization of technological innovation in eye-care will be essential in stemming the rising number of cases, and ASG Eye Hospitals’ expertise is anticipated to play a vital role in achieving progress across India.

acted as the exclusive financial advisor for the transaction. AZB & Partners as legal counsel to ASG Eye Hospitals. Khaitan & Co. acted as legal counsel to Foundation Holdings and InvestCorp, Shardul Amarchand Mangaldas & Co acted as legal counsel to General Atlantic and Veritas Legal acted as legal counsel to Kedaara Capital.

(With inputs from health)