TPG Growth invests $33 million in Rhea Healthcare

TPG Growth, the $7 billion growth equity investment platform of TPG, on Tuesday said they have invested $33 million in Rhea Healthcare Pvt. Ltd for a significant majority stake. Bengaluru-based Rhea Healthcare 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,” said Puneet Bhatia, managing director and country head for TPG in India.

Through its Growth, Capital, Asia, and Biotech platforms, TPG has invested more than $10 billion in healthcare companies around the world.

“In our work across the healthcare space globally, we’ve identified specialty care networks as an area where there is significant opportunity, especially in emerging markets where patients are just now starting to demand skilled specialists,” said Matthew Hobart, partner at TPG Growth, who leads the fund’s healthcare investments.

Quality centers 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 centers that offer a combination of clinical expertise and personalised attention for them and their child. Motherhood has built a network that offers state-of-the-art technology, including high-end neonatal intensive care units, and a dedicated team of experienced gynecologists, neonatologists, and pediatricians. The funds raised will be utilized for geographical expansion and enhancement of treatment options for patients.

“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,” said Dr. Mohammed Rehan Sayeed.

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.