Quadria in Talks To Acquire into Dialysis Chain NephroPlus

According to two persons familiar with the situation, Quadria Capital, an Asia-focused private equity fund, is in advanced talks to acquire a significant minority position in India's largest dialysis chain, NephroPlus, for 2,000 crore ($250 million).

Existing investors - the US-based Bessemer Venture Partners (BVP) and International Finance Corporation (IFC) - will exit fully by selling about 30% stake together, while the largest shareholder Investcorp is likely to sell a small stake in this round, said sources. Investcorp owns about 35-40% stake in NephroPlus. IIFL is another investor with 5-6% stake while promoters hold about 30% stake in NephroPlus, as per economic times

NephroPlus, founded in 2009 by Vikram Vuppala, Sandeep Gudibanda, and Kamal Shah, manages over 300 dialysis centers in over 180 locations across four countries. NephroPlus sees 22,000 patients each month and has administered 8 million treatments to date. Existing investors began looking into exiting NephroPlus at a valuation of 2,000 crore.

Emails addressed to Vuppala, CEO of NephroPlus, IFC, BVP, and Quadria representatives were not returned, while an Investcorp official declined to comment. According to reports, NephroPlus is predicted to have an Ebitda of 90-100 crore in FY24, and the firm may be valued at 20X Ebitda.

NephroPlus will raise $24 million (180 crore) in Series E fundraising in 2021, led by IIFL Asset Management (IIFL AMC) and existing investors Investcorp and BVP. NephroPlus has raised around $104 million in different stages to date.

NephroPlus secured a 70 crore loan from the Asian Development Bank in January 2023 to develop in Uzbekistan. Following a $100 million deal, NephroPlus is establishing four dialysis centers in collaboration with the Republic of Uzbekistan's Ministry of Health.