ObGyn hospital chain Cloudnine raises $74M funding from IVFA
Cloudnine, a multi-city hospital chain for women and children specialising in obstetrics, gynaecology, fertility, and neonatology, today announced that it has raised Rs. 400 ($74 million) crores from India Value Fund Advisors (IVFA) for a minority stake.
This is the third round of investment made in the hospital chain. Cloudnine had earlier raised $16 million by Sequoia India and its existing investors Matrix Partners India. Both Matrix and Sequoia retain their stake in the hospital chain. The investment will be used to develop strategic opportunities, enhance customer service, and invest in medical tech.
Starting from a single hospital in Bengaluru that was focussed on providing quality newborn care, Cloudnine, founded in 2007, today has expanded its operations to 10 hospitals across Bengaluru, Mumbai, Pune, Chennai, and Gurgaon.
Speaking about partnering with IVFA, Rohit M.A., Managing Director of Cloudnine, said that they are eager to work with IVFA as they have a deep understanding of the healthcare sector and are experts in building world-class enterprises.
Siddharth Dhondiya, Managing Director, IVFA, said that they have been following the healthcare delivery models in India very closely. He adds that the deal and focus of the partnership would be to further help strengthen the core value proposition of Cloudnine and help extending the chain to establish a pan-India footprint.
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The team at Cloudnine claims that have achieved a 99.7 per cent infant survival rate against the Indian odds of 47.1 per cent and the global odds of 50.6 per cent. A strong team of over 2,000 employees claims to have celebrated around 27,000 births across its regions.
According to the UNICEF, India is believed to account for the world’s highest number of deaths among children below age five. However, the decline seems to be high since 2013. Globally, the average is at 49 per cent and India has reduced to 59 per cent from 126 per cent in 1990.
In 2013, the estimated healthcare expenditure in India was USD 96.3 billion, which constituted almost five per cent of the GDP. With a growth rate of approximately 12 per cent, this number is expected to cross USD 195 billion in the next three years.
However, according to records, India as a nation has only 0.6 doctors per 1000 people. Many believe that technology is yet to hit the medical devices segment.