TPG and Temasek contribute $80 million to Dr. Agarwal's Indian Eye Hospital Chain

Dr. Agarwal's Health Care said this week that it raised $80 million from existing investors Singapore's Temasek and U.S.-based TPG as the Indian eye hospital operator plans to double its hospital count. The top shareholder of publicly listed Dr. Agarwal's Eye Hospitals plans to operate 300 hospitals by the end of 2025. It currently has over 150 hospitals, including in African countries like Nigeria and Kenya. Shares of the company rose as much as 10.3%, before paring some gains to last trade up 5.1%.

The firm is aiming revenue of about 15 billion rupees for the current financial year and up to 25 billion rupees within the next three, CEO Adil Agarwal said. Dr. Agarwal's will invest over 12 billion rupees ($144.45 million) to set up new hospitals in India and 10 centres in the African countries of Kenya, Zambia, and Tanzania, it said. The fundraising comes more than a year after Dr. Agarwal's - founded in 1957 in the southern Indian city of Chennai - closed a 10.50 billion rupee funding round from Temasek and TPG Growth, TPG's middle market-focused arm. Private care is becoming increasingly popular in India as the population grows and ages, as well as income levels rise.

The pandemic has heightened people's attention to health and wellness. Global investors are scouting the approximately $48 billion Indian private healthcare market, with Temasek spending $2 billion in April to increase its stake in multi-specialty chain Manipal Hospitals from 41% to 59%.