Mumbai: Global private equity firm KKR has acquired Indian hospital operations of Stockholm-based Medicover AB, which provides healthcare and diagnostics services globally, the companies said in a statement on Thursday.
The companies did not disclose the financial details of the transaction. The investment in Medicover India reflects KKR’s belief in the long-term potential of India’s healthcare ecosystem.
The development comes as the healthcare segment undergoes a strong wave of consolidation, as standalone and single-region players are increasingly being acquired by regional and national chains. This trend is expected to continue as larger chains move to solidify their presence, particularly in tier-two and tier-three cities, creating an integrated and competitive healthcare landscape, KPMG said in the note.
"We are pleased to invest in Medicover India and look forward to contributing to its next phase by investing behind its talent, technology, infrastructure and clinical capabilities, while reinforcing strong clinical governance and operational standards,” said Akshay Tanna, partner and head of India private equity at KKR.
Tanna added that the private equity firm aims to broaden access to advanced healthcare and patient services through this investment.
PE interest
Growing interest from private equity funds is providing a large capital pool to back scaled-up assets and accelerating this trend. These funds are exploring platform approach in India to create larger and more integrated hospital networks.
More hospitals are now also exploring public markets to provide exit opportunities to PE funds, further shaping the sector’s evolution, KPMG added.
In December, KPMG highlighted that the multi-speciality hospital market in India is expanding rapidly, with an estimated market value of ₹6,300 billion in 2024, projected to reach ₹9,800 billion in 2028, reflecting a CAGR of around 12%.
As India advances the objectives of the National Health Policy 2017, sustained investment in healthcare infrastructure, clinical capabilities, technology, and innovation will help strengthen the delivery of high-quality care for patients and communities across the country, KKR said in the statement.
Kotak Investment Banking advised KKR on the acquisition of Medicover Hospitals India.
Established in 2017, Medicover India is a multi-specialty hospital network with 24 hospitals and about 4,800 beds across South and West India.
The company provides comprehensive care across more than 80 clinical specialities and has more than 1,900 doctors and advanced clinical infrastructure and technology.
Since 2004, KKR has invested more than $20 billion across the global healthcare ecosystem, supporting healthcare providers and businesses in strengthening clinical capabilities, investing in technology and infrastructure, and expanding access to high-quality care.
In India, KKR has invested across healthcare delivery, medical technology and related services, supporting businesses across the broader ecosystem.
KKR offerings span alternative asset management as well as capital markets and insurance solutions. It sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.