Nova Medical Centres (Nova), India’s leading day/short-stay surgical care and fertility clinics has secured an equity investment of Rs.3 billion (approximately US$ 54 million) from Goldman Sachs and New Enterprise Associates (NEA).
Goldman Sachs, a leading global investment bank, will invest Rs. 2.2 billion (approximately US$ 40 million). NEA, a leading venture capital firm and initial investor in the company, will make an add-on investment of Rs.800 million (approximately US$ 14 million).NEA had earlier invested US$ 15 million into the company. The investments will be used to further expand the company’s specialty surgery and fertility businesses.
The three-year old Nova develops, acquires, owns and operates day/short-stay surgical centres in partnership with surgeons across India and the Middle East. Nova's mission is to provide world class surgical care that is affordable and conveniently located. It pioneered the concept of short-stay surgical care in India and undertakes procedures that take 24-72 hours from admission to discharge. A large majority of Nova's patients get discharged the same day.
In August 2011 Nova established a significant presence in the In-Vitro Fertilization (IVF) field by acquiring a majority stake in Pulse Women's Hospital, a well-established IVF clinic based in Ahmedabad. This was further enhanced by a joint venture with IVI, Spain, the world leader in IVF technology. Nova provides upwards of 700 surgical procedures, including specialties in orthopaedics, spine surgery, general surgery, gynaecology, bariatric surgery, ENT, plastic and cosmetic surgery, urology, gastroenterology, ophthalmology, pain management and IVF.
Nova was co-founded by renowned shoulder surgeon Dr Mahesh Reddy and the GTI Group, based on a ‘doctor-owned and doctor-managed’ concept enabling doctors to have a sense of ownership and a long-term association with the company. The Nova infrastructure allows leading surgeons from diverse specialties to focus solely on the patient’s health while the company provides turn-key hospital management in the form of a full complement of ultra-modern facilities and services.
According to Suresh Soni, chairman and CEO, Nova Medical Centres, The investment from Goldman Sachs and NEA will accelerate the expansion of our footprint across the country both organically as well as through acquisitions. This will ultimately better serve India’s healthcare delivery services industry, surgeons and, most importantly, patients.
“Both Goldman Sachs and NEA have extensive experience in investing in India and backing healthcare companies that have gone on to become international institutions,” he added.
Ankur Sahu, co-head of private equity in Asia at Goldman Sachs, said, “This investment is consistent with our strategy to partner with experienced management teams and owners to build high quality businesses of scale in under-served sectors critical to India's growth.”Ankur Sahu and Harsh Nanda, executive director at Goldman Sachs, will join the Board of Nova.
“Healthcare has always been a major focus for NEA globally and in India,” said Ben Mathias, executive director of New Enterprise Associates (India) Pvt. Ltd. “Backing healthcare services platforms that improve quality, increase access and reduce costs is a proven strategy for us and we are excited to continue our partnership with Nova.”
Goldman Sachs is active in private equity and principal investing in India. Since 2006, the firm has deployed more than US$ 2 billion in India. Globally, Goldman Sachs has invested over US$ 8 billion in the healthcare sector spread across more than 30 companies, including Quorum, Drayer Physical Therapy and Max India.