Neonatal Care and Research Institute Pvt. Ltd. (operating under the “Ovum Hospitals” brand name), a maternity and child care specialty hospital focused on high-end neonatal care, announced today that it has raised $5 million (Rs. 33 crores) in Series A funding from IL&FS Investment Managers and Norwest Venture Partners. Unitus Capital acted as an exclusive advisor to Ovum Hospitals on the transaction. This new round of financing will be used to set up similar facilities in and around Bangalore.
The company was founded in 2011 by a team of four doctors – Adarsh Somashekar, Praveen Venkatagiri, Venkata Reddy, and Srisailesh Vitthala. The founding team has extensive UK-based training and experience and returned to India with a mission to provide standardized, high quality, affordable neonatal care. In 2013, the company extended its services to include maternal care, and Ovum Hospitals was born.
Ovum plans to use the money to expand to three more hospitals in and around Bengaluru in the next 18 months, CEO Dr Adarsh Somashekhar said. Ovum has earlier raised funding from primary care clinic chain Nationwide, which has also been backed by Norwest.
Ovum offers slightly lower cost packages compared to competitors such as CloudNine and Cradle, which are targeted at more upper middle class segments.
Praveen Venkatagiri, co-founder and head of neonatal network, said the company will be able to afford the price differential by spending less on ambience and choosing localities where its competitors are not present so far.
“While gynecology services are abundant in India, demographic changes have caused an increase in high risk deliveries and neonatal complications. Hence, there is a growing need for high quality, affordable, neonatal intensive care,” said Mark Silgardo, senior managing partner at IIML.
Ovum Hospitals has quickly expanded to four locations in Bangalore. It started with providing NICU coverage to the Milann Fertility Center and Chinmaya Mission Hospital and has now grown to a 30-bed maternal and NICU care at Banaswadi, and an IVF facility in Kalyan Nagar.
“In less than five years, Ovum has been able to build multiple neonatal hospitals using an impressive capital efficient business model,” said Mohan Kumar, executive director of Norwest Venture Partners, India. “For a mission-driven organization in a challenging environment, this is commendable.”
With state-of-the-art NICU, Ovum Hospitals strives to reduce the mortality and morbidity rate of newborns. The in-house training program ensures that the team of doctors, nurses, and support staff are always equipped with the latest clinical knowledge and technology to offer high quality patient care, the right way.
About Neonatal Care & Research Institute (NCRI)
For more information, please visit: http://ovumhospitals.com/
About IL&FS Investment Managers
IL&FS Investment Managers Limited (IIML) is one of India’s largest domestic private equity fund management companies with over US$ 3.2 billion under management on behalf of leading Indian and International Institutions. IIML has been an active investor in the Indian market since 1997 with aggregate investment experience spanning over a decade and access across industry sectors. IIML’s experience covers the entire Private Equity lifecycle – right from raising funds, making and planning investments to restructuring and exits. IIML manages a number of Funds, which are invested across a variety of sectors including Infrastructure, Technology, Media, Retail, Consumer Services, Manufacturing and Real Estate. http://www.ilfsinvestmentmanagers.com/
About Norwest Venture Partners
Norwest Venture Partners is a global venture capital and growth equity investment firm that manages more than $6 billion in capital. The firm targets early to late stage venture and growth equity investments across a wide range of sectors including: technology, information services, business services, financial services, consumer products/services and healthcare. Headquartered in Palo Alto, Calif., Norwest has offices in San Francisco and New York, and subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. The firm has funded more than 575 companies since inception. For more information, please visit www.nvp.com. Follow Norwest on Twitter @NorwestVP. http://www.nvp.com