India’s IDFC places second bet on healthcare

IDFC Private Equity has made its second investment in India’s healthcare in less than a month.

The private equity arm of India’s Infrastructure Development Finance Company is making its second investment in the country’s healthcare sector within weeks of closing its first transaction in a hospital operator.

IDFC Private Equity is investing Rs500 million ($10.8m; €8.5m) in HealthCare Global Enterprises, a private oncology institution based in Bangalore.

HealthCare Global owns and manages a network of cancer centres including Bangalore Institute of Oncology, Curie Centre of Oncology, and hospitals and oncology institutes in Mysore and Shimoga.

Luis Miranda, chief executive of IDFC Private Equity said the investment will give company the cash it needs to expand, in addition to help with its business strategy and financial engineering. HCG plans to develop its cancer care and research network nation-wide.

Cancer is the sixth leading cause of all deaths in India, and is expected to be among the top three over the next ten years, according to statistics from India’s Ministry of Health and Family Welfare.

IDFC Private Equity has been looking at investing in India’s healthcare sector for over three years, and identified HCG about a year ago, Miranda said.

Expansion of private healthcare insurance means people are now better able to afford healthcare, Miranda said.

IDFC’s last investment was in a generic, multi-specialty care provider, Manipal Health Systems Private Limited. Both investments were made from the same $630 million IDFC Private Equity Fund II.

Following the latest investment, IDFC Private Equity has “nothing (else) on the radar in healthcare for now,” Miranda said.