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SeaLink buys out OrbiMed from Surya Children’s Medicare, injects fresh funds

By Joseph Rai

  • 15 Jun 2018
SeaLink buys out OrbiMed from Surya Children’s Medicare, injects fresh funds

Mid-market private equity firm SeaLink Capital Partners has invested Rs 200 crore ($29.5 million) in mother- and child-care company Surya Children’s Medicare Pvt. Ltd, marking its second bet from its debut fund.

The transaction included an infusion of growth capital into Surya and a purchase of the stake held by the company's first external healthcare investor OrbiMed, a statement said without elaborating.

VCCircle had first reported in April that SeaLink was in advanced stage of investing in Surya.

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The healthcare company, which was started by BS Avasthi in 1983, specialises in high-risk maternity, neonatal and paediatric intensive care. It has a presence in Mumbai, Pune, Thane and Jaipur and has plans to expand in the next few years, the statement said.

Surya had raised Rs 54 crore from OrbiMed by selling a minority stake in September 2013.

The company operates in an unregulated market where the rising pre-term birth rates and maternal complications have created a need to improve clinical outcomes. Moreover, almost 30% of India’s population is under the age of 14 and requires both preventive and curative paediatric care. There is a significant undersupply of paediatric hospital beds in the country with an estimated deficit of nearly 200,000 beds, the statement noted.

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“There is a significant shortfall in availability of paediatric healthcare services and infrastructure in India and addressing it is an extremely urgent issue,” said Heramb R Hajarnavis, managing partner, SeaLink.

SeaLink was floated by former KKR executive Hajarnavis in 2014. Earlier this year, it raised $315 million (Rs 2,040 crore) for its first fund.

The private equity firm had made its first investment in dialysis chain NephroPlus Health Services Pvt. Ltd in August 2016.

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Apart from healthcare, the PE firm will also look at financial services, information technology, business services, consumer products and niche manufacturing sectors.

Sectoral deals

The mother- and child-care segment has attracted significant funding in the past few years.

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In July 2016, TPG Growth invested $33 million (Rs 220 crore) in Rhea Healthcare Pvt. Ltd, which runs a chain of mother-care and child-care hospitals under the Motherhood brand, for a significant majority stake.

This deal came just months after private equity firm True North (formerly India Value Fund Advisors) invested Rs 400 crore (about $60 million) in Kids Clinic India Pvt. Ltd, which operates Cloudnine, a chain of maternity hospitals.

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Rainbow Children’s Medicare Pvt. Ltd, which runs a chain of paediatric and maternal care hospitals under the Rainbow Hospitals brand, has raised substantial funding from CDC Group Plc and Abraaj Group.

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