Kotak fund invests Rs 940 cr in IPO-bound diagnostics chain Neuberg

Neuberg Diagnostics, promoted by GSK Velu, is planning to use the pre-initial public offering fundraise to boost its merger and acquisition ability

In the largest-ever primary fund-raise in the Indian diagnostics sector, Chennai-based super specialty diagnostics chain Neuberg Diagnostics has secured an investment of Rs 940 crore from Kotak fund to support its inorganic expansion across the country.

 

Neuberg Diagnostics, promoted by GSK Velu, is planning to use the pre-initial public offering (IPO) fundraise to boost its merger and acquisition (M&A) ability. It is also looking at expansion in the areas of personalised medicine, integrated diagnostics and inorganic growth strategy.

 

The investment was made by Kotak Strategic Situations India Fund II, which is managed by Kotak Alternate Asset Managers (Kotak Alt). o3 Capital acted as the exclusive financial advisor to Neuberg Diagnostics for the fundraise from Kotak Alt.

 

 

“We are thrilled to announce that Neuberg Diagnostics has secured an investment from Kotak Alt marking a significant milestone in our journey toward becoming one of the largest diagnostics chains of Indian origin. This funding will enable us to enhance our capabilities in the areas of personalised medicine, integrated diagnostics and inorganically expand our footprint across the country. As we prepare for an IPO, we remain committed to making high-quality diagnostics accessible to all, ensuring that our services continue to meet the evolving needs of clinicians and patients,” said Velu, founder and managing director of Neuberg Diagnostics.

 

Rahul Shah, Partner at Kotak Alt, said, “We are excited to partner with Neuberg Diagnostics as they work to transform the diagnostics landscape in India. The investment reflects our confidence in Neuberg’s vision and potential. We are confident that this strategic investment will play a key role in increasing the scale of Neuberg Diagnostics and help the company get ready for their upcoming IPO. This investment solidifies our commitment to supporting quality healthcare solutions that improve patient outcomes and accessibility.”

 

Neuberg Diagnostics, founded in 2017 and headquartered in Chennai, has rapidly emerged as the leading integrated diagnostics player in the country and one of the top four largest diagnostics providers of Indian origin. It has an extensive network spanning over 10,000 touch points and over 250 labs across 250 cities.

 

Neuberg ranks as one of the top two genomics players in India and holds a leadership position in new-born screening and reproductive genomics testing. The company is the first-of-its-kind in India to set up dedicated centres of excellence covering modalities across genomics, proteomics, metabolomics, transplantation immunology, haemato-oncology, and histopathology. 

 

Kotak Alt, a part of Kotak Mahindra Group, focuses on alternate asset management and investment advisory businesses.