Several global private equity firms, including Warburg Pincus, KKR, TPG Capital, Advent International, CVC Capital Partners, and Permira, along with India’s Kedaara Capital, are in talks to invest in Cloudnine, stated a report by The Economic Times (ET).
The firms are negotiating to acquire a 25% stake in India’s largest maternity and pediatric hospital network, the report added, citing sources familiar with the matter.
The deal could reportedly value Cloudnine at nearly Rs 10,000 crore ($1 billion).
Existing investor True North, which owns a 25% stake in the company, is expected to make a full exit if the transaction goes through. Meanwhile, other shareholders, including Temasek and TPG Newquest, which together hold a 52% stake, are likely to retain their investments, ET reported.
Cloudnine specialises in mother-and-baby care, offering services across gynaecology, paediatrics, fertility, neonatal care, and intensive care. The hospital chain currently operates 55 centres across India.
India’s healthcare sector has witnessed sustained deal activity in recent years, with leading hospital chains such as Manipal Hospitals and Apollo Hospitals attracting significant private equity interest.
Among other hospital chains seeking capital is Healthworld Hospitals, which is understood to have initiated discussions to raise nearly $25 million in fresh funding.
In the pharmaceutical sector, True North recently invested in Embio, a company that manufactures active pharmaceutical ingredients (APIs) using synthetic biology and precision fermentation technologies for regulated markets.
