General Atlantic acquires stake in KIMS Hospitals for $130 million

Krishna Institute of Medical Sciences (KIMS Hospitals), a large healthcare group with a sizeable presence in Telangana and Andhra Pradesh, announced on Wednesday that it has received a strategic growth investment from General Atlantic.

As part of the transaction, the global growth equity firm has invested over $130 million in a combination of primary capital and secondary purchases, to acquire a significant minority stake in the company, its management said. While a major chunk of this money goes to ICICI Ventures as it has sold its entire 30 per cent stake to General Atlantic, the promoters have sold a small percentage of stake to the new investor.

General Atlantic's entry has paved the way for exit of ICICI Ventures, which had invested Rs 2.2 billion in the company in 2014.

Set up in 2004 by well-known cardiothoracic surgeon surgeon Bhaskar Rao, KIMS Hospitals has grown to become one of the largest corporate healthcare groups in southern India, with seven multi-specialty hospitals across the region and a capacity of over 2,500 beds.

"We are thrilled to partner with General Atlantic as we embark on our next phase of growth to strengthen our presence in undeserved geographies. Given General Atlantic's deep experience of investing in healthcare globally and its network of relationships across leading global healthcare institutions, we are confident that this new association will help KIMS Hospitals deliver on its goal of bringing quality medical care, modern medicinal facilities, and services within the reach of common man," KIMS Hospitals managing director and CEO Bhaskar Rao said.

Shantanu Rastogi managing director of General Atlantic said," We are excited to partner with Dr Rao and the broader management and medical teams at KIMS Hospitals. We will work closely with the company on new initiatives and growth opportunities, with t he objective to establish KIMS Hospitals as the leading destination for affordable healthcare in India."