Fertility chain’s promoters likely to sell stake for around $15 m
Mumbai: Healthcare-focused funds Quadria Capital, Asian Healthcare Fund and Tata Healthcare Fund are in talks with the promoters of fertility chain Morpheus IVF, which wants to sell a significant minority stake for around $15 million, said three people with direct knowledge of the development. “The company is looking to raise growth capital for opening up new centers,” one of the persons said.
IVF international, a German company, is the primary promoter of Morpheus IVF. “The promoters are looking to sell a significant minority stake. They are in talks with a few global strategic partners as well as healthcare-focused PE funds in the country,” said another person involved in the deal. The company has held talk with funds such as Quadria Capital, Tata Healthcare Fund, Asian Healthcare Fund, among others, sources said. The company has appointed investment bank 7i Capital to look for buyers.
Email queries sent to the spokespersons for the company and the funds did not elicit any response till the time of going to press.
Morpheus is the first and largest chain of Indo-German fertility centres. The 30-plus chain of centres works on a partnership model where it financially partners with local specialists whereby leveraging on their individual brand and sharing the set-up cost.
“Unlike its many peers, the company has managed to keep its business model asset light where capex requirement is low,” another person said.
The IVF market in India, although at a nascent stage, is growing at 20% annually. The .₹ 1,000-crore market sees around1lakh embryo transfer cycles annually. The average cost of each transfer cycle is about .₹ 1 lakh.
“The increasing customer awareness and the changing lifestyle leading to fertility related issues in new-age couples is going to aid the growth of the sector, going forward,” the third person said.