New Delhi, May 19 -- 360 ONE Asset Management, which manages several alternative investment funds, is in talks to invest in a medtech portfolio company it first backed more than two years ago, as the latter explores inorganic expansion opportunities.

The Mumbai-based asset manager, which invests across stages through its private equity business, has backed companies such as contract drugmaker OneSource Specialty Pharma and A4 Hospitals, among others.

It is now considering a follow-on investment in Hearing Solutions Pvt Ltd, the parent company of Hearzap, as part of the hearing care chain's bridge round, Hearzap founder Selvaraj Rajapandian told VCCircle.

The investment will be made through 360 ONE's private equity fund.

The development follows VCCircle's February report which said that Hearzap had kicked off a larger fundraising exercise and appointed Veda Corporate Advisors to raise as much as $25-30 million (around Rs 227-272 crore then).

Rajapandian confirmed that the company is looking to raise capital but didn't disclose the target amount.

The proposed fundraising will support Hearzap's expansion plans as it pursues an inorganic growth strategy alongside organic expansion to enter newer markets.

Hearzap bets on acquisitions

As part of its expansion strategy, the company is acquiring Amplifon India, the Indian arm of Italian hearing aid retailer Amplifon Group, with the support of 360 ONE Asset Management.

While the transaction details weren't disclosed, Rajapandian said the deal size exceeds the firm's typical $2-4 million acquisition spend.

According to Rajapandian, Amplifon India is the country's largest hearing aid retailer, with Hearzap ranking a distant second. The acquisition is expected to significantly strengthen Hearzap's market position.

In a stock exchange filing on Tuesday, Amplifon said the divestment includes a network of around 240 direct clinics and 460 employees. The Indian unit generated nearly 12 million euros (Rs 134 crore) in revenue in 2025. Amplifon said it reviewed its business segments to improve the group's overall financial performance, adding that the Indian subsidiary's revenue contribution was marginal to the group and had a negative impact on EBITDA.

With the acquisition, Hearzap will add 240 points of sale to its network, taking the overall count to 420, according to the company's announcement.

"The biggest benefit would be geographical synergy, which will give Hearzap access to a large part of the country, including tier II and III cities," Rajapandian said. He added that the acquisition will complement both firms by filling in geographical gaps where the other lacked presence. "We would look at similar opportunities in hearing care and consolidate further," he said.

"Our main focus right now will be on the integration process. If opportunities for future acquisitions arise, we will certainly consider them at a later stage," Rajapandian said, when asked about further takeovers.

He said future acquisitions would be financed through a combination of fresh capital from 360 ONE and debt funding.

In 2024, Hearzap had also acquired a 51% stake in Speech and Hearing Care for an undisclosed amount, funding the purchase entirely through internal cash flows, VCCircle reported.

Background

Founded in 1977, Hearing Solutions operates the Hearzap hearing care platform, offering end-to-end audiology solutions, including hearing tests, consultations, and hearing aid services. It operates a network of clinics across India, focusing on improving accessibility, early diagnosis, and awareness in hearing healthcare through a tech-enabled and client-centric model.

In 2023, Hearzap's parent company raised $6 million from a healthcare-focussed private equity fund managed by 360 ONE Asset Management.

Financial targets

In FY26, Hearing Solutions recorded standalone revenue of Rs 110 crore, a 31% increase from a year ago, while Amplifon India's topline inched up by close to 1% to Rs 120 crore, according to Rajapandian.

Hearzap recorded a negative EBITDA margin of 4% in FY26, although it turned EBITDA-positive in the fourth quarter of the fiscal year.

Rajapandian said Hearzap expects to turn profitable in the ongoing financial year, though he didn't give a specific timeline. He added that the company is already profitable under Ind AS standards.

Most of the company's centres that have been operational for more than two-and-a-half years are profitable, and the business is profitable at the store level, he said.

The company aims to achieve a revenue of around Rs 250 crore by the end of the current financial year and aims to scale this to nearly Rs 500 crore by FY29. Hearzap also plans to expand its network to around 500 hearing care centres by 2027.

Published by HT Digital Content Services with permission from VC Circle.