US-based private equity (PE) firm General Atlantic (GA) on Wednesday announced that it will acquire a majority stake in Delhi-based 2,500-bed hospital chain Ujala Cygnus for an undisclosed sum. As a part of the deal, Cygnus's early investors—Eight Roads Ventures, Somerset Indus Capital, and Evolvence Capital—will make a full exit.
Ujala Cygnus currently operates 21 hospitals in five states of northern India, catering mainly to tier-2 and tier-3 cities.
“Ujala Cygnus plans to use the investment from General Atlantic to upgrade clinical and civil infrastructure across the Ujala Cygnus network and to augment comprehensive care capabilities across key specialties in each of the markets it serves,” GA said in its press release.
General Atlantic has in the past made healthcare investments across India and Southeast Asia such as Rubicon Research, ASG Eye Hospital, KGbio, Biofourmis, and Hyderabad-based KIMS Hospital.
Shantanu Rastogi, managing director and Head of India at General Atlantic, said that Ujala Cygnus has established itself as a trusted provider of comprehensive and affordable healthcare, coupled with robust clinical governance and quality standards.
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Additionally, the investment will help Ujala Cygnus boost healthcare access in underserved areas and support healthcare professionals desiring to work closer to their origins, thus expanding the network across northern India.
Ujala Cygnus currently operates 21 hospitals in five states of northern India, supported by a network of outreach clinics and digital health services providing teleconsultation. The hospital chain majorly serves tier 2 and tier 3 cities.
Probal Ghosal, chairman and director, Ujala Cygnus, said that the collaboration underscores Ujala Cygnus’s success in revitalising healthcare facilities in tier 2 and tier 3 cities through strategic infrastructure upgrades, the recruitment of skilled medical professionals, and robust standard operating procedures.
“Since 2018, Ujala Cygnus has expanded its hospital network from 9 to 21 facilities across 17 cities in five states, increasing bed capacity from 1,000 to over 2,500 beds,” he added.
Shuchin Bajaj, founder director, Ujala Cygnus, said that with GA’s support, we look forward to the expansion of our platform and welcome more healthcare practitioners to join this transformative movement and the Ujala Cygnus mission.
With a commitment to further extend its impact in underserved markets, Ujala Cygnus aims to pursue both organic and inorganic growth strategies, including collaborations with local hospitals through leasing and revenue-sharing models.
In addition to the investment from General Atlantic, Ujala Cygnus had recently secured term loan facilities from the Asian Development Bank. EY India was the sole financial advisor for Ujala Cygnus for this transaction.