Kotak Unveils INR 1,600 Cr Healthcare Fund Targeting Life Sciences & Diagnostics

Reportedly, the fund targets an 8-billion-rupee corpus, with an additional greenshoe option to raise another 8 billion rupees.

Kotak Alternate Asset Managers Ltd., backed by billionaire Uday Kotak, is set to raise up to INR 1,600 Cr ($190 million) through a new healthcare private equity fund, aiming to capitalize on growth in India’s life sciences and diagnostics sectors.

The fund targets an 8-billion-rupee corpus, with an additional greenshoe option to raise another 8 billion rupees, as per an investment document reviewed by Bloomberg News.

With plans to invest between INR 250 million and INR 500 million per company, the Mumbai-based firm has begun global and local roadshows, including sessions in New York, to attract potential investors, fund manager Ashish Ranjan confirmed.

Kotak Alternate Asset Managers aims to finalize the fund within the next two quarters.

Healthcare Sector Growth in India

“We are looking to deploy capital in healthcare companies that are building for the next decade,” said Ranjan, highlighting India’s expanding healthcare landscape.

According to government data, the value of India’s hospital industry is projected to reach 18.35 trillion rupees by 2027, with a growth rate of approximately 18.24%.

This rapid expansion underscores significant opportunities for investors and aligns with India’s increasing focus on healthcare development.

In a previous development, in June this year, Kotak Alternate Asset Managers (Kotak Alt), part of the Kotak Mahindra Group, invested INR 1,445 Cr in Matrix Pharma to support its acquisition of Viatris' active pharmaceutical ingredients (API) business, a significant US-based pharmaceutical entity.

The investment was made via Kotak Strategic Situations Fund II, underscoring Kotak Alt’s strategic focus and expertise in pharmaceuticals.

With this acquisition, Matrix Pharma is positioned to become India’s second-largest player in the API sector, establishing global leadership in antiretroviral (ARV) APIs.

The deal includes extensive R&D assets, including over 185 scientists and 600+ Drug Master File (DMF) filings, enabling Matrix to strengthen its relationships with major global pharmaceutical companies, backed by regulatory approvals from both US and European authorities.

Stay tuned for more such updates on Digital Health News.