BackCygnus Medicare raises Rs60 crore from Fidelity, current investors
Of the total investment, around Rs54 crore has come from Fidelity and Rs6 crore from Somerset
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New Delhi: Cygnus Medicare Pvt. Ltd, which runs hospitals in tier-2 cities, has raised Rs60 crore (around $9.76 million) from Fidelity Growth Partners and its current investor Somerset Capital, according to a person aware of the development.
Of the total investment, around Rs54 crore has come from Fidelity and Rs6 crore from Somerset, said the person, who spoke on condition of anonymity.
Fidelity has picked up around a 28% stake in the company and Somerset will hold a 23% stake, which takes the joint holding by the two private equity funds to 51%.
Fidelity has made significant investments in the healthcare and pharmaceutical industry, putting money in biotech firm Richcore Lifesciences, medical equipment manufacturer Trivitron Healthcare, active pharmaceutical ingredient (API) manufacturer Laurus Labs and early-stage diagnostics company Xcyton Diagnostics.
Cygnus Medicare, which was founded in 2011, has nine hospitals in locations such as Panipat, Sonipat, Nangloi and Dwarka among others, with a total bed strength of 550 beds, and plans to invest Rs80 crore to add 10 more hospitals in the next two years, taking the number of beds to 1,800. Cygnus earned revenue of Rs70 crore in the financial year ended 31 March.
The company has created an asset-light model in which it leases facilities. With reduced dependence on expensive specialized equipment, it controls costs while providing affordable healthcare services.
“It’s a good model as it is relatively asset-light. Compared to launching a full-fledged hospital, here the company invests in retrofitting a building according to the hospital requirements, or upgrading the current infrastructure," said Abhishek P. Singh, associate director of healthcare practice at PricewaterhouseCoopers.
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