Cloudnine rases Rs 400 crore from India Value Fund Advisors

The firm, which operates multi-city chain of women and child-focused hospitals, plans to use the funds to expand nationally

India Value Fund Advisors (IVFA) has invested Rs 400 crore for a minority stake in Cloudnine, joining existing investors Matrix Partners India and Sequoia India, who had invested in Cloudnine in its initial phase of growth.

Siddharth Dhondiyal, managing director of IVFA and Sanjay Arte, Partner at IVFA have also joined Cloudnine's Board as Directors of the Company.

This would be the third round of fundraising for Cloudnine. The company had raised Rs 100 crore ($16 million) in its second round led by Sequoia India and existing investor Matrix Partners India in 2013. Matrix had invested Rs 45 crore in the company in 2011, the firm said in a statement.

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, founded by neonatologist Dr Kishore Kumar is a multi-city chain of women and child-focused hospitals specialising in obstetrics, gynaecology, fertility and neonatology. The firm plans to use the funds to expand nationally, Kumar said.

The focus of the partnership and investment will be to further strengthen the core value proposition of the Cloudnine brand and extend the company's leadership position in the women and child healthcare services segment as the company builds out a pan-India footprint. This deal showcases the IVFA investment philosophy of working with entrepreneurs and management teams looking to build high quality, globally competitive companies that are admired by all stakeholders."

Rohit MA, managing director of Cloudnine said we will be looking to invest at strategic opportunities to build out capacity and disruptive customer service and medical tech to enhance the overall experience further."