New Delhi, Aug. 6 -- US private equity firm KKR said it will acquire the India unit of Swedish healthcare provider Medicover AB's hospital operations amid growing interest in the country's healthcare sector.
KKR said on Thursday that it has signed agreements under which funds managed by the PE firm will acquire Medicover India, the hospital operations unit of the Stockholm-listed healthcare and diagnostic services provider.
While the transaction terms were not disclosed, recent media reports suggest KKR will spend Rs 13,000-14,000 crore ($1.3-1.4 billion) to acquire Medicover India, with about a quarter of the amount being infused into the company as primary capital.
Kotak Investment Banking advised KKR on the transaction.
Established in 2017, Medicover India is a multi-specialty hospital network with 24 hospitals and around 4,800 beds across south and west India. It offers comprehensive care across more than 80 clinical specialties, supported by more than 1,900 doctors.
As of the second quarter of 2026, the Swedish parent derived 14% of its revenue from India. Medicover Hospitals India's revenue surged 23.1% year-on-year, while local currency revenue rose 39.6%. However, revenue from India continued to be affected by "unfavourable foreign exchange fluctuations", according to Medicover's investor presentation.
"We are pleased to invest in Medicover India and look forward to contributing to its next phase by investing behind its talent, technology, infrastructure and clinical capabilities, while reinforcing strong clinical governance and operational standards," said Akshay Tanna, partner and head of India private equity at KKR.
The latest bet by KKR follows a string of buyouts by the PE firm in India's healthcare space.
In early 2025, KKR struck a deal to acquire a controlling stake in HCG from CVC Capital. As part of the transaction, KKR agreed to acquire a 54% stake in HCG from CVC at Rs 445 per share, valuing the deal at Rs 3,428 crore ($400 million then).
Prior to HCG, KKR acquired a majority stake in Baby Memorial Hospital as part of its strategy to build a hospital platform in India. The acquisition followed KKR's sale of its remaining stake in Max Healthcare in 2022 for around Rs 9,400 crore.
KKR has used Baby Memorial Hospital as a vehicle to acquire more hospitals. In May, Baby Memorial Hospital acquired Hyderabad-based Star Hospitals to boost its regional presence. This was after VCCircle had reported in January that KKR was set to increase its stake in Baby Memorial Hospital, which would subsequently acquire a controlling stake in Star Hospitals.
Last year, Baby Memorial Hospital acquired Kerala's Meitra Hospital and Tamil Nadu-based Naruvi Hospitals. In late 2024, it acquired Chazhikattu Hospital in Kerala's Idukki district.
Published by HT Digital Content Services with permission from VC Circle.