Seven private equity funds — global majors Warburg Pincus, KKR, TPG Capital, Advent International, CVC Capital Partners and Permira, along with domestic firm Kedaara Capital — are competing to acquire a 25% stake in Cloudnine, India's largest maternity and pediatric hospital chain, according to a report by the Economic Times. The proposed deal is expected to value the Bengaluru-based healthcare company at around ₹10,000 crore ($1 billion).
Warburg, KKR, TPG Among Suitors for Cloudnine Stake as True North Plans Exit
As part of the transaction, existing investor True North, which first backed Cloudnine in 2015 and has held its stake for over a decade, will make a complete exit
Cloudnine Cloudnine Hospitals
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Investment bank and wealth management firm Allegro Capital is managing the sale process, with initial bids expected in the first week of July, the report added.
As part of the transaction, existing investor True North, which first backed Cloudnine in 2015 and has held its stake for over a decade, will make a complete exit. Temasek, which invested in 2024, and TPG NewQuest, which came on board in 2021, together hold around 52% of the company and are likely to retain their stakes, the report further said.
The promoter group holds around 10%, with the remainder accounted for by employee stock option plans (ESOPs).
Notably, Apollo holds a 9.9% stake worth ₹785 crore in Cloudnine following a transaction completed in May this year, which valued the company at approximately ₹7,930 crore, or around $825 million. Previous investors in the chain include Matrix Partners and Sequoia Capital.
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The upcoming round is expected to be a combination of primary and secondary components, where some early investors will look to sell their holdings.
This development follows earlier reports about Cloudnine's plans to raise $250–300 million in a fresh funding round.
Mint had previously reported that True North was looking to offload its long-held stake as part of this exercise. The round is expected to be a mix of primary and secondary components, with some early investors selling their holdings.
A significant portion of the proceeds, around $150 million, is earmarked for inorganic expansion in the Middle East, where the company is closely evaluating acquisition opportunities, according to Mint.
The fundraising exercise comes weeks after Kids Clinic India Pvt. Ltd, which operates Cloudnine Hospitals, agreed to acquire the maternity, childcare, and fertility businesses of Apollo Health & Lifestyle in a cash-and-stock transaction valued at approximately $160 million.