Swedfund invests in Indian healthcare chain

Swedfund, in partnership with DEG and lead investor Quadria Capital, invests in the specialist healthcare provider Medica. The investment will facilitate Medica becoming the leading hospital chain in Eastern India. Medica’s mission is to provide high quality healthcare services at an affordable cost.

Medica Synergie (”Medica”) currently serves the Eastern India region with a population of about 300 million. Accessibility of healthcare services is limited in the region and the available healthcare services are often of poor quality and the need for further investments in the sector is significant. The region’s healthcare bed density is only 3.6 beds per 10,000 people (relative 9 for India as a whole and 29 in the Western world). The need for high quality healthcare services in the region is so large that patients currently travel long distances, causing extra pain and increased costs, to get relevant treatment.

Medica, founded in 2007, operates three specialist hospitals in Eastern India and has in total approximately 500 beds divided among the hospitals in Kolkata, Siliguri and Jamshedpur. The investment made by among others Swedfund, facilitates continued expansion of clinics and hospital beds. Medica provides advanced healthcare services within cardiology, internal medicine, ENT, neurology, orthopedic, intensive and emergency care and dialysis.

Swedfund’s mission, as a long-term and responsible investor in local companies, is to attain lasting developmental impact in the countries we invest. Swedfund’s investment strategy rests on three main pillars – community development, sustainability and financial viability.

Fredrik Törgren, responsible for the Medica investment at Swedfund:

”It’s a great pleasure that we by this investment contribute to increased accessibility and expansion of high quality healthcare services in a region of great need of more hospitals. The management and founders of Medica have made a solid work with the business to date and we can, by supporting the company’s expansion, further increase the number of clinics and beds. We will work actively with quality, sustainability and social corporate matters (ESG) and thereby support the development of along-term strong and sustainable company which through its operations contributes to community development”.

About Quadria Capital

Quadria Capital is an independent private equity group based in Singapore that invests into the high growth healthcare sectors of some of the world’s fastest growing economies in Southeast and South Asia. Quadria Capital seeks to make meaningful, positive impact by increasing access to affordable, high quality healthcare to underserved populations that need it the most. Quadria Capital believes that responsible investments are critical to long term, sustainable value creation in the region.

About DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

DEG, a subsidiary of KfW and one of Europe’s largest development finance institutions, finances investments of private companies in developing and transition countries. DEG has been committed to private-sector investments in India since 1964. Drawing upon its many years of experience in India as well as in other developing countries, it provides valuable assistance to companies in realizing their investment projects. DEG invests in companies across the sectors that contribute to sustainable development of the economy. DEG’s India portfolio currently stands at over EUR 500 million spread across about 50 projects.

Contact:
Fredrik Törgren, Senior Investment ManagerPhone: + 46 8 725 94 15E-mail: fredrik.torgren@swedfund.se