PE firm ChrysCapital to invest up to Rs 830 crore in Centre For Sight

"This investment will support CFS's ability to further scale and serve the growing demand for eye care in India both across Tier-I and Tier-II cities," the statement added

Private equity (PE) firm ChrysCapital announced on Monday that it will invest up to $100 million (around Rs 830 crore) in New Delhi-based eyecare chain Centre For Sight (CFS).

The transaction will involve a mix of primary infusion and the purchase of the entire stake held by Mahindra Holdings (MHL), a wholly-owned subsidiary of Mahindra & Mahindra, to acquire a significant minority stake in CFS, said a joint statement.

“This investment will support CFS’ ability to further scale up and serve the growing demand for eyecare in India, both across Tier-I and -II cities,” the statement added.

Founded in 1996, CFS is among the top three organised eyecare chains in India, with an established pan-Indian presence and an annual footfall of more than 1.5 million. The company currently operates 83 centres across 15 states and 39 cities.

This investment from ChrysCapital, a mix of primary and secondary infusion, will support CFS in accelerating its expansion plans and will also provide an exit for MHL, which invested in the company in 2019.

o3 Capital acted as the exclusive financial advisor for the transaction.

Commenting on the investment, Raghav Ramdev, managing director of ChrysCapital, said that the healthcare sector in India is a key focus area for ChrysCapital, given the significantly underserved market and the potential for share gain for organised players.

Mahipal Sachdev, chairman and founder of CFS, said that ChrysCapital’s investment is an endorsement of CFS’ capabilities and will also provide impetus to the company’s growth plans of strengthening its leadership position.

The PE firm expects organised branded chains such as CFS to gain share from standalone clinics, with ChrysCapital seeing an opportunity for the company to further scale up through accretive tuck-in acquisitions on an accelerated pace in the next few years.

“CFS has strong potential to accelerate its growth trajectory that it has showcased over the past five years, driven by continued growth in existing centers and expansions through a mix of greenfield centers and inorganic expansion,” the company statement added.