Norwest Venture Partners Acquires 40% Stake in Regency Healthcare for INR 600 Cr

The objective of this acquisition is to further strengthen Regency Healthcare's position in the healthcare sector, particularly in Kanpur and the surrounding regions.

After previous acquisition talks, Norwest Venture Partners, a US venture capital firm supported by Wells Fargo, has successfully acquired a 40% stake in Regency Healthcare, a Kanpur-based medical facility, for INR 600 Cr.

This acquisition was previously speculated in September 2023. The objective of this acquisition is to further strengthen Regency Healthcare's position in the healthcare sector, particularly in Kanpur and the surrounding regions.

Regency Healthcare, founded by Dr Atul Kapoor, a medical practitioner based in Kanpur, is known for its 1,000-bed hospital in the city and its collaboration with Germany's Fresenius Medical Care to operate a network of dialysis clinics. Fresenius is a global leader in end-stage kidney disease management.

Speaking about the agreement, one of the officials, in the know of the development on condition of anonymity, said, "An agreement has been reached today. Norwest Venture will acquire around 40% stake in the company."

This deal has garnered attention due to its substantial financial implications and the involvement of key players in the healthcare domain.

It's worth noting that International Finance Corporation (IFC) and HealthQuad had previously invested approximately $14 million in Regency Healthcare in 2016.

However, as part of this deal with Norwest Venture, both IFC, the private investment arm of the World Bank, and HealthQuad, a fund with a partnership between Sunil Thakur, Abrar Mir, Amit Varma, and impact finance investor Kois, will exit the company.

Norwest Venture Partners, headquartered in Palo Alto, California, is a renowned venture and growth equity investment firm with substantial capital under management.

With a portfolio of $12.5 billion across North America, Israel, and India, Norwest Venture Partners has made strategic investments in various sectors, including logistics, healthcare, and food delivery.

Five months ago, the company announced its investment in US-based Vertos Medical, which treats lumbar spinal stenosis, which causes pain and loss of strength in the lower back and legs for nearly 15 million Americans.

In other healthcare developments, in October, Quality Care, a hospital platform owned by the private equity fund Blackstone, is slated to acquire KIMS Health Management, a prominent hospital chain in Kerala. The deal values KHML at INR 3,500 Cr.

Separately, HealthCare Global Enterprises Limited (HCG) made a strategic move by acquiring SRJ CBCC Cancer Hospital in Indore, marking its entry into the healthcare landscape of Madhya Pradesh.