Tata Capital health division pours USD 10 million investment into Apex Kidney Care

This funding has been channeled through Tata Capital Healthcare Fund II (TCHF II), a private equity fund with a specific focus on the healthcare sector.

As per various media reports, out of the USD 10 million investment, approximately 90% will be allocated for fueling the growth of Apex Kidney Care, while the remaining 10% will provide an exit opportunity for specific angel investors. Founded by nephrologists Jatin Kothari and Viswanath Billa, AKC has garnered financial support from both its founders and angel investors.

With a current network comprising more than 180 dialysis centers, Apex Kidney Care has ambitious plans to utilize this capital infusion to significantly expand its dialysis network. The target is to establish 300 centers across India within the next 18-24 months, with about 50-60 of these centers operating as standalone facilities.

Of AKC's existing dialysis centers, approximately 120 are currently operational under the public-private partnership (PPP) model, spanning various states such as Madhya Pradesh, Maharashtra, Telangana, Goa, and Delhi. An additional 61 centers are located within hospital premises, and six function as standalone centers.

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Sharing the company's strategic vision for the coming years, Indranil Roy Choudhury, CEO of AKC told ET, "We aim to establish more standalone centers within the next 18-24 months, focusing on metropolitan areas and tier-1 cities. These locations offer a more favorable margin profile and increased profitability."

Additionally, Choudhury emphasized the financial aspect of launching a new dialysis center, highlighting that it typically involves an investment ranging from Rs 1.5 to Rs 1.6 crore, with a breakeven period of at least one year.

Tata Capital Healthcare Fund II, a private equity fund operating under the esteemed Tata Group, known for its commitment to supporting growth-stage healthcare enterprises, has made a significant investment of USD10 million in Apex Kidney Care (AKC), India's second-largest dialysis chain. This strategic investment, resulting in an undisclosed equity stake, is intended to facilitate the expansion of Apex Kidney Care's dialysis services across India, as per a company statement.

India currently witnesses nearly 21 million dialysis sessions each year, catering to less than 11% of the country's overall demand for such services. This underscores a significant gap driven by factors including accessibility, affordability, and compliance challenges, as pointed out by the involved entities.

Vamesh Chovatia, Partner at Tata Capital Healthcare Fund II, emphasized the fund's comprehensive approach to capital investment, focusing on backing companies like AKC that are actively addressing critical gaps in the healthcare industry. Expressing optimism about working closely with Apex Kidney Care, Chovatia told Live Mint, “We aim to work with Apex Kidney Care and make quality and cost-effective services available to nephrology patients." Chovatia believes that India requires more organizations similar to Apex Kidney Care to deliver dialysis services effectively and bridge the healthcare gap in the industry.

Indranil Roy Choudhury, CEO of Apex Kidney Care, expressed his enthusiasm for the partnership with Tata Capital Healthcare Fund II. He highlighted that this association will significantly enhance their service capabilities and play a pivotal role in realizing their mission of creating a kidney care ecosystem that prioritizes compassion, respect, transparency, and desired treatment outcomes. With the support of Tata Capital Healthcare Fund II, Apex Kidney Care aims to make dialysis and allied services accessible and affordable to all.

It's worth noting that Tata Capital Healthcare Fund II has previously made investments in the healthcare sector, including a debut investment in health tech firm Deeptek in March 2022 and a USD 10 million investment in Mumbai-based Oncocare Centre, a network of cancer treatment centers.