Global Dental Services, which owns and operates a chain of dental clinics called Clove Dental in India, said it has raised about $67 million (Rs 545 crore) in a Series D round, led by global alternate investment firm Investcorp.
The round also saw participation from Tybourne Capital and SeaLink Capital Partners apart from some new and existing shareholders, according to a press statement.
The firm plans to use the funds to fuel expansion plans, primarily spreading its commercial footprint. Additionally, it plans to grow its direct-to-consumer (D2C) hybrid model brand, LoveMySmile, which also offers products for smile correction.
“This partnership will help us prepare to achieve our expansion goals, add the latest technological equipment in our clinics, and bring professional and ethical dentistry to many more Indian communities. The experienced teams and network of our new partners will enable us to significantly accelerate our growth,” said Amarinder Singh, founder and Chief Executive Officer, Clove Dental.
Founded in 2011 by its current CEO, Singh, the GDS group owns and operates 340 clinics across 24 cities and 12 states in India under the brand “Clove Dental”.
The investment announcement comes a day after Investcorp co-CEO Rishi Kapoor told DealStreetAsia that the firm expects to have assets worth $5 billion in India in five years. It currently manages just over $600 million in India, which is a mere 1.5% of its $42.7 billion worth of global assets.
It has backed several Indian startups such as Xpressbees, Wingreens, FreshToHome, and Incred. Investcorp has earlier concluded three healthcare deals in India: V-Ensure Pharma Technologies, Neprhoplus (a dialysis chain), and ASG Eye Hospitals, where Investcorp recently sold its entire stake to General Atlantic and Kedaara.
“Today, the Indian dental services market is worth $3 billion. It is highly fragmented with large hospitals and dental chains accounting for under 10% of all practices, although this number is expected to double in the next five years. Investing in a single specialty segment, within healthcare, aligns well with our thesis of backing scaled and differentiated assets,” said Gaurav Sharma, Head of Private Equity, India at Investcorp.