HealthCare Global, an oncology care hospital chain, has received a funding of $20 million from PremjiInvest, a private equity fund sponsored by Azim Premji.
With this funding, PremjiInvest has bought a "significant minority stake" in HCG. This is the third round of funding the hospital has received after it initially received Rs 50 crore (Rs 500 million) from IDFC Private Equity and the second funding of Rs 10 crore (Rs 100 million) from Evolvence.
The latest funding is expected to help HCG enlarge its vision of backward integration in cancer management on a pan-India basis and realise its aim of making treatment accessible to common man through a hub-and-spoke model. The chain says it will try to check the treatment costs by scaling up.
"We will be able to keep costs down through centralised care," said Ajai Kumar, chairman and chief executive, HCG. This will enable the firm to ramp up operations across various geographies quickly besides enhancing its research initiatives, he added.
By FY10, HCG hopes to have 15 centres across the country, including three centres of excellence. The additional funding will enable the hospital to adopt new innovations in the diagnosis, treatment and management of cancer.
The company will set up a centre of excellence, which would act as the hub, at an investment of Rs 40-50 crore (Rs 400-500 million) and Rs 8-10 crore (Rs 80-100 million) to set up a facility attached to a hub. HCG is considering both acquisition and association with hospitals and cancer specialists for the expansion.
Post-investment, two members from PremjiInvest - Prakash Parthasarathy and Bobby Mustafa - have been inducted into the HCG board.
Prakash Parthasarathy, chief investment officer, PremjiInvest, said, "Healthcare in India is going through a rapid transition and the need for top quality specialised medical care is increasing." PremjiInvest looks at investment opportunities in firms that are in the sectors where Wipro is not present, he added.
