Regency Health, a hospital chain, announced on Tuesday that it has secured an investment of INR 450 crore from Norwest Venture Partners. In light of this fresh infusion of funds, the company has outlined ambitious plans to expand its bed capacity to 2,300 by 2027, particularly strengthening its presence in Uttar Pradesh.
Presently, Regency Health operates with a total of 700 beds, but this investment will catalyze a substantial expansion in the company's infrastructure and healthcare services. Their immediate plans include the establishment of a 250-bed facility in Gorakhpur by August 2024, followed by a 450-bed unit in Kanpur in January 2025, a 350-bed unit in Varanasi in January 2026, and a 375-bed unit in Lucknow by February 2027. Regency Health is also actively exploring opportunities for expansion in other cities within Uttar Pradesh.
Atul Kapoor, the Chairman and Managing Director of Regency Health, expressed his commitment to revolutionizing healthcare delivery in Uttar Pradesh and emphasized that the investment is pivotal to achieving their vision.
“Our upcoming multi-specialty tertiary hospitals, including those in Gorakhpur, Kanpur, and Varanasi, are poised to set new benchmarks in healthcare excellence,” Kapoor said.
Norwest India Managing Director, Shiv Chaudhary, while acknowledging the rise of Uttar Pradesh as an economic powerhouse, he emphasized the state's immense potential for impactful investments. “This collaboration is a significant step towards realizing Regency's growth aspirations and redefining healthcare benchmarks that will positively impact the lives of Uttar Pradesh's residents,” Chaudhary said.
Meanwhile, the healthcare VC fund, HealthQuad, has successfully divested its stake in Regency Health. The exit comes as a result of the US-based investment firm, Norwest Venture Partners, supported by Wells Fargo, acquiring shares in Regency Health through a combination of primary and secondary investments.
The secondary investment component of this transaction involved a consortium of existing investors, including HealthQuad, IFC, and KOIS, selling their entire stake in Regency Health to Norwest. Notably, the consortium had initially invested a total of INR 102 crore in the company.
HealthQuad's initial investment in Regency Health dates back to 2017, with the goal of addressing the healthcare demand-supply gap in Uttar Pradesh and establishing a corporate hospital chain to serve densely populated areas lacking adequate healthcare services.
Throughout the span of seven years, HealthQuad actively collaborated with Regency Health, introducing three new facilities and commencing the construction of three more, which are slated to be launched in the future.
In conclusion, the future of healthcare in Uttar Pradesh appears promising as Regency Health paves the way for a significant transformation in the region. With a substantial investment and ambitious plans to expand its bed capacity, Regency Health is poised to set new benchmarks in healthcare excellence with multi-specialty tertiary hospitals.
