Temasek Invests $80 Million in India's Dr. Agarwal's Eye Hospitals

Dr. Agarwal's Health Care announced on Aug 17 that it has raised $80 million from existing investors Singapore's Temasek and TPG in order to double its hospital count. The top shareholder of Dr. Agarwal's Eye Hospitals, which is publicly traded, intends to operate 300 hospitals by the end of 2025. It currently operates over 150 hospitals, many of which are in African countries such as Nigeria and Kenya.

Dr. Agarwal's Eye Hospitals shares rose as much as 10.3% following the announcement before paring some gains to close up 4.2%. According to a press release, Dr. Agarwal's will invest over 12 billion rupees ($144.45 million) in new hospitals in India and 10 centers in Kenya, Zambia, and Tanzania.

The fundraising comes more than a year after Dr. Agarwal's - founded in 1957 in the southern Indian city of Chennai - closed a 10.50 billion rupee funding round from Temasek and TPG Growth, TPG's middle market-focused arm. Private care is becoming increasingly popular in India as the population grows and ages and income levels rise. The pandemic has heightened people's attention to health and wellness.

Global investors are scouting the approximately $48 billion Indian private healthcare market, with Temasek spending $2 billion in April to increase its stake in multi-specialty chain Manipal Hospitals from 41% to 59%.