Announced Date: November 2023
o3 Capital acted as the exclusive financial advisor to Regency Health on its fundraise from Norwest Venture Partners.
We are pleased to announce that our client, Regency Hospitals Ltd. ("Regency Health"), has secured an investment from Norwest Venture Partners ("NVP") for a minority stake.
Established in 1995 by Dr. Atul Kapoor, Regency Health is the first corporate hospital chain headquartered in Uttar Pradesh, with a capacity of 700+ beds distributed across five facilities, located in Kanpur and Lucknow, and a premium primary care center in Kanpur. Regency Health maintains a strategic focus on providing high-end medical care in underserved markets within tier-2 cities in Uttar Pradesh, covering premium specialties such as oncology, cardiac sciences, renal sciences, neuroscience, and gastroenterology.
Norwest Venture Partners is a leading venture and growth equity investment firm managing more than $12.5 billion in capital. Since its inception, Norwest has invested in more than 650 companies and currently partners with more than 200 companies in its venture and growth equity portfolio. The firm invests in early- to late-stage businesses across a wide range of sectors with a focus on consumer, enterprise, and healthcare.
The investment assumes significance in Regency Health’s forthcoming expansion phase, which includes further expansion of capacities in Kanpur and Lucknow, as well as its foray into high-potential cities in Uttar Pradesh.
This transaction also facilitates the exit of the company's existing investors, namely IFC, HealthQuad, and KOIS.
"This investment is a testament to the trust and belief that Norwest has placed in us. We are dedicated to revolutionizing healthcare delivery in Uttar Pradesh, and this capital infusion will be instrumental in achieving our vision. Our upcoming multi-specialty tertiary hospitals, including those in Gorakhpur, Kanpur, Lucknow and Varanasi, are poised to set new benchmarks in healthcare excellence." Dr. Atul Kapoor, Chairman and Managing Director of Regency Health, said.
Abhishek Kapoor, CEO of Regency Health, adds, "We're thrilled to partner with Norwest on this transformative journey. This investment will significantly enhance our infrastructure and services, directly benefiting the people of UP. Our unwavering 'From UP For UP' ethos aligns seamlessly with our mission to serve the people of Uttar Pradesh.”
Shiv Chaudhary, Managing Director at Norwest India, expressed his confidence in the partnership, stating, “Regency is a market leader in the state of Uttar Pradesh which is India’s largest healthcare market in terms of people to be served. We resonate closely with Regency’s commitment to elevating healthcare standards and driving positive societal change. With Uttar Pradesh emerging as an economic powerhouse, the potential for impactful investments is immense. This collaboration signifies not only a substantial step towards realizing Regency's growth aspirations but also a transformative journey in shaping the healthcare landscape of the state. Together, we envision redefining healthcare benchmarks and leaving a lasting legacy in the lives of Uttar Pradesh's residents.”
Dr. Pinak Shrikhande, Managing Director at HealthQuad said, "HealthQuad’s successful exit testifies the value that the business has generated by delivering affordable, quality healthcare in an under-penetrated and complex market in Uttar Pradesh. Through our partnership with Regency Health, we are proud to have contributed to the growth and expansion of the hospital group, transforming it into a regional leader. We would like to thank all stakeholders, including the Regency management, IFC, KOIS, Norwest and o3 Capital for a successful consummation of the transaction.”
Charles-Antoine Janssen, Managing Partner and Co-founder of KOIS said, “KOIS is happy to have supported Regency in its development and mission to make quality healthcare accessible and affordable in UP. It thanks IFC and HealthQuad for this fruitful co-investment and wishes the best to the Kapoor family for their Regency growth plans.”
Mohit Khullar, Managing Director of o3 Capital said, “Regency is located in one of the most populous and underserved states of the country and has truly leveraged its regional expertise to address the significant healthcare gaps in its core markets. We wish the best to the Regency team for their upcoming expansion plans, and to the Norwest team for their maiden hospital investment. We would also like to thank Dr. Atul Kapoor, Abhishek Kapoor, IFC, HealthQuad and Kois for providing us the opportunity to advise them in this endeavour.”
This marks o3 Capital's 15th deal closure in the Healthcare & Lifesciences space in the last 24 months. This is one of the few minority deals in multi-specialty hospitals in the recent past, and highlights o3 Capital’s strong credentials in a prominent segment within healthcare.