Goldman, NEA invest Rs 300 cr in Nova Med

Day/short stay surgical care and fertility clinics company Nova Medical Centres said on Monday that it has received investments of Rs 300 crore from the private equity arm of global investment banking firm Goldman Sachs and venture capital fund New Enterprise Associates (NEA).

The funding will be channelised to support the expansion of the specialty surgery and fertility businesses, the company said in a statement.

Goldman Sachs is investing Rs 220 crore, while NEA, an initial investor in the company, will make an add-on investment of Rs 80 crore, Nova said. The investment is in the form of equity with both firms holding minority stakes, a source familiar with the development told Deccan Herald. 

“The company is on an expansion path, with an ambitious plan to set up 25 specialty surgery centres and 25 fertility clinics across India and the Middle East,” the source said.

In the next two years, Nova, which is already setting up a surgery centre in Muscat, Oman, will be foraying into markets in Saudi Arabia and UAE. “Nova runs nine surgery centres in India at present, and going forward, it will look at expansion across the country including Tier II and Tier III cities,” the source said.  

Presently, there is growing demand among people for ambulatory treatment centres, which the company is aiming to fulfil. Ambulatory treatment implies that the overall time for a surgical procedure, from admision to discharge, takes anywhere between a snappy 24 to 72 hours. 

“There is significant opportunity in the fertility care space as well, due to a dearth of good facilities,” the source said.

This is the second time NEA is investing in Nova, having invested around Rs 83 crore in the company earlier. “We had done our pro-rata investment as part of this round, which is reflective of our confidence in the company and its management team,” NEA (India) Executive Director Ben Mathias said. 

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