CDC, Manipal Co Ink Healthcare Partnership
.₹ 500-crore fund to invest in healthcare services beyond conventional hospital services Here’s Lifeline
Bengaluru: CDC Group, the development finance institution owned by the UK government, and Manipal Education and Medical Group (MEMG) have tied up to launch a .₹ 500-crore corpus to invest in healthcare services beyond conventional hospital services.
This partnership will invest in innovative opportunities in India, Africa and South Asia. The platform will target ‘out-of-hospital’ care services/companies, like diagnostics and home-care services.
“The objective of targetting this space is because, increasingly the customer would prefer availing such services closer to home. (The selected teams) would typically be companies which have established a good reputation for providing high quality service in a region or have a unique product/service offering,” said Ranjan Pai, CEO of Manipal Education and Medical Group. “The quantum of investment will be on case-to-case basis. Ideally, we will prefer to provide individual investment above $10 million per transaction.”
Companies in the molecular diagnostic space, in India, and infectious diseases investigations, in Africa, have been identified for investment by the partnership.
The partnership’s primary focus will be on building scale through acquisitions and will back entrenched market players and strong management teams. The platform will support firms that are currently constrained to grow beyond a certain level due to management and financial limitations. Size of corpus fund
invest in innovative opportunities in India, Africa and South Asia
target ‘out-of-hospital’ care services/companies, like diagnostics & home-care services
over $10 million per investment
“Each of the potential investee companies would be professionally run by the key team members under the supervision and guidance of an independent board. Manipal’s support to the investee companies will be at the board level in terms of strategic direction, validation, suggestions for process improvement, service diversification, identification of key manpower resources and design of effective control systems,” said Pai.
While this partnership will incubate and grow businesses in ‘Healthcare Beyond Hospitals’, both MEMG and CDC will continue independently to pursue investing in the conventional hospital space in the targetted markets. The partnership will also look to increase investment in the future. “CDC is committed to supporting the growth of the healthcare sector in India because of the jobs created and the innovations that can improve access and bring higher quality care for all patients. We are delighted to be working with Manipal, a strong operational partner, who have pioneered healthcare delivery and education in India,” said Srinivasan Nagarajan, CDC’s head of South Asia.