India Digest: Norwest invests $54m in Regency Health; Alta commits $200m to Cappella Educore

Regency Health has received an investment of about $54 million from Norwest Venture Partners, while Cappella Educore has secured investment commitments worth $200 million from Alta Capital.

Existing investors IFC, HealthQuad, KOIS exit Regency Health

Hospital chain Regency Health has received an investment of about $54 million (Rs 450 crore) from Norwest Venture Partners, per an announcement.

The investment, which is a mix of primary and secondary components, has also provided an exit to some of Regency Health’s existing investors including International Finance Corporation (IFC), HealthQuad, and KOIS.

The consortium had originally invested a total of Rs 102 crore in the company in 2017.

With the fresh infusion, Regency Health plans to increase its bed capacity to 2,300 by 2027. Currently, it operates five tertiary care hospitals with a total of 700 beds across Kanpur and Lucknow.

By August 2024, the hospital is set to open a 250-bedded facility in Gorakhpur, followed by another 450-bed unit in Kanpur in January 2025, 350-bed unit in Varanasi in January 2026, and another 375-bed unit in Lucknow by February 2027.

Cappella eyes $550m portfolio in next 3 years

Cappella Educore, an education specialist platform started and managed by JV Ventures, has secured investment commitments worth $200 million from investment and asset management firm Alta Capital.

The money will help Cappella Educore build a portfolio of around $550 million over the next three years, according to a report in The Economic Times.

Cappella Educore currently owns about 13 schools across south and west India and intends to add 15 more over the next three years, the report said. Going forward, the platform also plans to list as an infrastructure investment trust (InvIT), the report added, quoting sources.

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