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Mahindra Partners invests Rs 206.5 crore in NDCFS giving exit to Matrix Partners

Bhavik Nair
Mahindra Partners invests Rs 206.50 cr in NDCFS giving exit to Matrix Partners

Mahindra Partners, the private equity and corporate venture capital arm of the Mahindra Group, has invested Rs 206.50 crore in New Delhi-based Centre for Sight (NDCFS), through a mix of primary and secondary capital, thereby providing a full exit to NDCFS’ early investor Matrix Partners.

As part of the transaction, the promoters have further invested Rs 20 crore. As a result, a total of Rs 226.50 crore has been invested by Mahindra Partners and the promoters of NDCFS in the transaction.

The Centre for Sight was established in 1996 and incorporated in 2002 by Dr Mahipal Sachdev. NDCFS provides eye-care services from 43 eye-care centres across 9 states and more than 24 cities in India. It also employs more than 145 doctors. NDCFS flagship centre in Dwarka, New Delhi, that was inaugurated in 2018, is a 90,000-square feet facility.

Parag Shah, managing partner at Mahindra Partners said NDCFS fits into the firm’s larger healthcare strategy which is focused on the delivery side with a bias towards single specialty.

“This new investment aligns with the demographic catered to by our first healthcare investment, Medwell Ventures, which operates a home healthcare chain under the Nightingales brand,” he said.

NDCFS will use the funds for organic and inorganic growth. Mahipal Sachdev, chairman and managing director (CMD) of NDCFS, pointed out that its association with Mahindra Partners will enable the firm to open new centres in existing territories as well as to drive growth through strategic acquisitions of existing practices.

NDCFS is Mahindra Partner s second healthcare investment in India, after Medwell Ventures. In April 2017, the firm announced a $21 million Series B investment in Medwell Ventures, which is the operator of Nightingales specialty home healthcare services in India. The funding round, led by Mahindra Partners, saw participation from existing investors Eight Roads Ventures and US-based F-Prime Capital Partners, alongside early angel investors and the founders.

The investment in Medwell Ventures was the first one by Mahindra Partners in the healthcare sector. The company had also stated its intentions to have a greater participation in the sector going forward. Mahindra Partners, established in 2009, has assets under management of over $1 billion, with current investments spanning logistics, healthcare and renewables among other sectors. The portfolio and team is spread across India and the Silicon Valley in the US.

The firm claims that its investment strategy is stage and sector-agnostic but within healthcare, areas of interest include single specialty, diagnostics, health-tech, wellness and rural healthcare.