Global PE firm TPG Growth invests $ 33 mn in Rhea Healthcare

TPG Growth, the $7 billion growth equity investment platform of the global private investment firm TPG, will invest $ 33 million (approximately Rs 220 crore) for buying majority stake in Rhea Healthcare Pvt Ltd, the Bengaluru-based company that operates a network of mother and child care centers in India under the Motherhood brand. 

“This latest investment reinforces our sector focus on healthcare in India and globally. Through TPG’s Growth, Capital, Asia, and Biotech platforms, the firm has invested more than $ 10 billion in healthcare companies around the world,” said Puneet Bhatia, Managing Director and Country Head for TPG in India.

Quality centres that offer specialised birthing and neonatal care are currently limited in India, but are increasingly in demand. As India’s middle class grows, mothers are seeking out exclusive care centres that offer a combination of clinical expertise and personalised attention for them and their child. Motherhood has built a network that offers latest technology, including high-end neonatal intensive care units, and a dedicated team of highly experienced gynaecologists, neonatologists, and paediatricians. The network’s leader, Dr Mohammed Rehan Sayeed, was trained at the Cleveland Clinic, a leading US non-profit academic medical center.

“Motherhood was built to provide specialty care in the mother and child segment, as the current generation of first-time parents are increasingly looking for a safer and more comfortable birthing experience. We look forward to partnering with TPG Growth to expand our footprint across India and enhance the treatment options we offer patients,” said Dr Rehan.

Vish Narain, partner at TPG Growth in India, added, “Motherhood is an early entrant in a space that we believe is prime for growth. The company has already built an impactful network and, working together, we can increase the availability of high-quality gynaecological and neonatal care across the country.”

TPG Growth’s investment in Motherhood is the latest in a series of healthcare investments the fund has made in India and the region. In April 2016, TPG Growth invested in Cancer Treatment Services International (CTSI), a network of single-specialty facilities across India; and in December 2015, TPG Growth invested in Asiri Healthcare, Sri Lanka’s leading hospital and diagnostics chain. TPG Growth invested in Sutures India in 2013 and helped the company grow from a single-product domestic manufacturer to a global medical consumables platform that exports to more than 90 countries. Including Motherhood, TPG Growth’s investments in healthcare companies across India and Sri Lanka now total nearly $ 250 million.

“On the heels of TPG Growth’s partnership with CTSI, this investment in Motherhood continues the firm’s momentum in India’s healthcare market. Motherhood exemplifies an inflection point, where consumer demand is shaping new models of healthcare delivery in India. We look forward to partnering with the company and its talented team and to leveraging learnings from TPG’s previous investments across the region,” informed Vishal Bali, senior healthcare advisor for TPG Growth in India.

By partnering with TPG Growth, Motherhood will gain access to TPG’s global network of healthcare experts. Examples of other TPG investments have included companies like US-based outpatient surgical care company Surgical Care Affiliates, China-operated private care network Chindex, medical benefits manager EnvisionRX, healthcare services company IASIS Healthcare, Indian hospital platform Manipal Hospitals, drug maker Par Pharmaceutical, and Singapore hospital network Parkway.