Sequoia Invests Rs 40 crore in Suburban Diagnostics; To Acquire 30% Stake
Sequoia Capital, the leading venture capital firm, has invested Rs 40 crore in pathology services provider Suburban Diagnostics. This deal has certainly given due emphasis to the rising investor interest in India’s healthcare sector.
The venture fund will acquire a 30% stake in the Mumbai-based company, according to a person with direct knowledge of the development.
“Healthcare is a fast growing market in India, which is hugely under-serviced and has a lot of unmet demand, as companies mature, it is natural for them to get investor interest,” said GV Ravishankar, managing director at Sequoia Capital, who will now join the board of Suburban Diagnostics along with his colleague VT Bharadwaj, also a managing director at Sequoia.
Headed by Sanjay Arora, an alumnus of Mumbai’s Grant Medical College, Suburban Diagnostics offers services such as pathology, electro-cardiogram, digital X-Ray and sonography. Arora did not offer any comment on the proposed deal with Sequoia.
The company will use the capital to increase the number of pathology centres and to upgrade its infrastructure and equipment.
Source: Economic Times