New Delhi, Sept. 11 -- Marengo Asia Hospitals, a multi-specialty hospital platform formed by private equity firm Samara Capital and two family offices, has secured fresh funding from private-equity firm LeapFrog Investments to expand its presence in tier-I Indian cities and beyond.

The company, which operates five hospital facilities across the Delhi National Capital Region and Gujarat, has secured $40 million (around Rs 383 crore) in growth capital from LeapFrog, to support Marengo's expansion into tier-I and II cities in the country.

Avendus Capital advised Marengo Asia Hospitals on this transaction.

This comes after VCCircle reported in June that Marengo Asia Healthcare Pvt Ltd had drawn interest from potential investors after kicking off a fundraising round earlier in the year. Besides LeapFrog, government-backed National Investment and Infrastructure Fund (NIIF), World Bank's International Finance Corporation (IFC), multistage investment firm Norwest Venture Partners and Kotak Alternate Asset Managers were among the potential investors.

Commenting on the fundraise, Abhishek Kabra, MD at Samara Capital and Chairman at Marengo Asia Hospitals, said: "LeapFrog's investment is a strong endorsement of the platform we have built and the potential for its next phase of growth. The proceeds will be used to consolidate our leadership in our existing markets while enabling us to expand into new geographies."

"We aim to double our hospital bed capacity to 4,000 beds over the next two years, further strengthening our ability to deliver high quality, accessible healthcare," Kabra added.

The company also said it will continue to invest in medical technology.

Background

Set up in 2021, Marengo Asia Hospitals has focussed on a buy-and build strategy, by acquiring established regional hospitals and strengthening their clinical and operating capabilities. Besides the five hospitals in India, the company has a strategic partnership in Saudi Arabia with around 2,000 beds, estimating it serves more than 900,000 patients annually.

It has a strong presence in Gujarat and a growing footprint in Delhi National Capital Region (NCR), offering specialties including cardiology, oncology, neurology, gastroenterology, orthopaedics, and renal care and transplants.

Currently, the company's biggest shareholder is Samara with its 46% holding. The family offices of electrical products maker Havells and the diversified Godrej Group each own 19-20%. The three investors have deployed a total of more than Rs 1,100 crore in Marengo since 2021, VCCircle previously reported.

With a network of seven hospitals with a capacity of over 1,800 beds, Marengo Asia employs over 720 doctors. By FY27, Marengo aims to add 1,000 beds through organic and inorganic routes.

Last year, the company acquired a majority stake in Sunshine Global Hospital to add 350 beds across Surat and Vadodara in Gujarat. Earlier this year, VCCircle reported that it was looking to acquire a controlling stake in a 250-bed hospital in Gujarat, which could make it one of the largest hospital chains in the state. It is also likely to add a hospital in Punjab and two more in Uttar Pradesh's Varanasi, each having a capacity of over 200 beds.

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