Metropolis Healthcare Limited (Metropolis), India’s multinational chain of diagnostic laboratories, has received a fund infusion to the tune of $85 million from Warburg Pincus, a leading global private equity firm.

As part of this deal, Indian private equity firm ICICI Ventures has completely divested its holding in the company, which it had acquired in 2006. The deal involves a primary and secondary component and also includes additional capital that will be available to Metropolis to pursue acquisitions.

In a fragmented market for medical diagnostic services in India, Metropolis has established itself as a national player of scale. Through a network of 45 state-of-the-art laboratories and over 350 collection centres across India, Metropolis processes over 12 million tests a year, serving over 10,000 laboratories, hospitals, and nursing homes and 50,000 doctors. The company has expanded through a combination of organic growth and partnerships. In addition to building a strong business in India, the company has successfully established its brand through 10 laboratories in Sri Lanka, South Africa and UAE. Metropolis will continue to seek attractive acquisition opportunities while expanding its delivery network and deepening its presence in current locations.

According to Ameera Patel, executive director & CEO, Metropolis, “Since our inception in 1981 as a Mumbai-based laboratory, Metropolis has been setting industry benchmarks time and again. Over the years, we have built India’s only multinational chain of diagnostic centres, and today the brand is well-respected amongst the healthcare and business fraternity. Our association with ICICI Ventures over the last few years has been rewarding and now we have Warburg Pincus as our future partner.

“We are confident that with their support we could consolidate Metropolis as the foremost clinical diagnostics service provider across the emerging markets of South Asia, Africa and Middle East,” she added.

“Warburg Pincus has a history of partnering with distinctive management teams to create durable businesses with sustainable value. Now Metropolis which is a pioneer in the pathology industry in India is well-positioned to leverage growth opportunities in the clinical diagnostics business, said Niten Malhan, managing director, Warburg Pincus India Private Limited.

"Healthcare is an important focus area for Warburg Pincus. We are delighted through this investment to expand our presence in the sector in India, particularly by partnering with Metropolis, which is uniquely positioned in healthcare services”, said Dalip Pathak, member of the executive management group at Warburg Pincus.

O3 Capital acted as the sole financial advisor to Metropolis for this transaction. Amarchand & Mangaldas & Suresh A Shroff acted as legal advisors to Warburg Pincus, Desai Diwanji acted as legal advisors to Metropolis and Ernst &Young conducted financial and accounting diligence for the transaction.