US-Based BVP & IFC Look to Sell Their 30% Stake in Indian Dialysis Chain NephroPlus

US-based Bessemer Venture Partners (BVP) and the World Bank's International Finance Corporation (IFC) are set to sell approximately 30% of their stakes in NephroPlus, India's largest dialysis chain. 

The valuation for this sale is estimated to be around INR 1,800-2,000 Cr ($200-250 Mn). However, Investcorp, the largest shareholder with a roughly 40% stake, has yet to decide on divesting its holdings. 

Additionally, IIFL holds around 5-6% of the stake, while the promoters retain about 30% ownership in NephroPlus.

Mumbai-based investment bank Avendus is advising the investors on the stake sale, and they have approached several global private equity funds for the transaction.

NephroPlus, operated by Nephrocare Health Services, was founded in 2009 by Vikram Vuppala, Sandeep Gudibanda, and Kamal Shah. It operates more than 300 dialysis centers across four countries, serving over 180 cities.

NephroPlus provides dialysis treatment to approximately 22,000 patients monthly and has treated 8 Mn individuals.

Founder & CEO Vikram Vuppala and spokespersons from IFC and BVP did not respond to emails seeking comments. Investcorp declined to comment on the matter.

Sources indicate that NephroPlus is expected to achieve an EBITDA of INR100-120 Cr in FY24. 

The company has raised approximately $104 Mn in funding through various rounds, including a $24 Mn Series E funding round in 2021, led by IIFL Asset Management, with participation from existing investors Investcorp and BVP.

Investcorp initially invested $45 Mn in the company as part of its Series D funding round in 2019. This round saw the exit of three-year-old investor SeaLink Capital from the company.