Mahindra Partners invests Rs 206 cr in Centre for Sight for network growth

Co-invests Rs 226.5 crore with promoters to buy out venture capital firm Matrix Partners, who invested twice in the ophthalmic chain

Mahindra Partners has invested Rs 206.5 crore in Delhi-based Centre for Sight Ltd (CFS), through a mix of primary and secondary investment. Nearly half the amount will go in buying out venture capital entity Matrix Partners, which had invested Rs 80 crore in 2010 and 2013. 

The new money will help the Rs 200-crore CFS, founded by Mahipal Singh Sachdev (who is chairman and managing director) to drive organic and inorganic growth. Thus consolidating its prime position in the growing Indian ophthalmology health care segment — CFS has plans to grow its network of 44 eye care centers across nine states and 24 cities. 

As part of this transaction, the promoters have also invested 20 crore, with Matrix Partners India fully exiting its stake. Mahindra Partners and the promoters have thus invested a total of Rs 226.5 crore, in a mix of primary and secondary investment.

“We are excited to partner with the Centre as it enters its next phase of growth,” said Parag Shah, managing partner at Mahindra Partners. “It is a leader in ophthalmology in India and we want to be a part of its evolution and growth into the dominant Indian eye care brand... We have great confidence in Dr Mahipal & his team, their strong focus on execution and the large, growing, market they serve.”

Adding: “CFS also fits into our larger health care strategy, which is focused on the delivery side, with a bias towards single speciality. This new investment aligns with the demographic catered to by our first health care investment, Medwell Ventures, which operates a home health care chain under the Nightingales brand.” 

“Our focus has brought us from a single small set-up to a proud chain, with state-of-the-art facilities. We believe in ensuring the delivery of the latest technology,” said Sachdev. “Our association with Mahindra Partners will help us sustain the scorching pace of growth we have set out for ourselves, enabling us to open new centres in our existing territories and in areas lacking quality eye care. And, to drive growth through strategic acquisitions of existing practices. We are also looking forward to playing a stellar role in ophthalmic training, education and research.

CFS was established in 1996 and incorporated in 2002 by Sachdev, also a Padma Shri recipient. The chain employs at least 145 doctors, many recognised as leaders in their respective specialities. Three of the doctors have been awarded the Padma Shri and several are also office-bearers in leading ophthalmological societies across India. 

It has also consistently delivered steady growth in both revenue and operating profit. A new 90,000 sq ft flagship centre was inaugurated at Dwarka in Delhi last year and has already become a hub of tertiary eye care for diverse strata of society. The CFS Eye Institute there has also emerged as a centre for educational excellence, with medical graduates undertaking fellowship training in various specialties of ophthalmology. And, becoming a preferred partner for ophthalmic manufacturing and pharmaceutical industries in research.