STIC Investments has invested $10 million in Sahyadri Hospitals, the largest chain of multi-specialty hospitals in Maharashtra, India. This is the second investment by the Pan-Asia private equity firm in the Indian market after it invested  $10 million in delivery startup Dunzo last October. 

Sahyadri Hospitals has eight facilities across Pune, Nashik and Karad in the Indian state. The chain has more than 900 beds, 2,000 clinicians and 2,600 supporting staff providing round-the-clock healthcare. 

Besides STIC, Singapore private equity firm Everstone Capital, Japan Post Investment, a partner in Japan Post Investment  Corp., ILP, and Duke University Management Company, known as DUMAC, have invested in Sahyadri Hospitals. 

STIC invested in Sahyadri Hospitals because of its high growth potential, according to industry bank sources.

India, which is emerging as the world’s third-largest economy, is gradually improving its social infrastructure, including its healthcare system. The recent outbreak of coronavirus pandemic has raised concerns in India over improved infrastructure in the healthcare and medical sectors and expanded fiscal spending. In addition, as urbanization and aging of the population are rapidly progressing across India, demand for mid- and upper-level medical institutions and medical services is expected to increase.

STIC has been focusing on investing in healthcare companies that are being operated on solid infrastructure technologies and stable business models. Examples include RF Medical, an export-oriented South Korean medical device manufacturer, Median Diagnostics, a South Korean diagnostic kit manufacturer, and Nanogen Pharmaceutical Biotechnology Co., in Vietnam.

In India, there are no restrictions on medical institutions to attract investments, do mergers and acquisitions (M&A) and go public. Accordingly, local investors and leading global investors like KKR, Carlyle, JP Morgan, Singapore sovereign wealth fund Temasek and Malaysia sovereign wealth fund Khazanah have been making investments aggressively in its medical sector. (Reporting by Hyeran Kim)