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Kotak Strategic Situations India Fund Il, managed by Kotak Alternate Asset Managers Ltd, has invested Rs 940 crore ($109.5 million) in diagnostic chain Neuberg Diagnostics Pvt. Ltd.

Neuberg will use the fresh capital to further its inorganic expansion strategy. Promoted by industry veteran Dr GSK Velu, Neuberg is known for acquiring and integrating leading regional diagnostics players and scaling them under the Neuberg platform. 

In terms of funding in diagnostics segments, this is the largest primary fundraise in the Indian diagnostics segment and a debut private equity round for Neuberg Diagnostics.

“This funding will enable us to enhance our capabilities in the areas of personalised medicine and integrated diagnostics and inorganically expand our footprint across the country. As we prepare for an IPO, we remain committed to making high-quality diagnostics accessible to all, ensuring that our services continue to meet the evolving needs of clinicians and patients,” said Dr GSK Velu, Founder and MD of Neuberg Diagnostics.

Neuberg Diagnostics is one of the major diagnostic service providers in India, with a presence in the UAE, South Africa, and the US. Last year, Neuberg Diagnostics merged Neuberg Supratech Reference Laboratory, Ahmedabad, and Neuberg Anand Reference Laboratory, Bengaluru, with the parent company to streamline operations and enhance efficiency. Neuberg formed a 50:50 joint venture with Kolkata-based diagnostic chain Pulse Diagnostics to expand its footprint in the eastern parts of India.

According to Neuberg Diagnostics, it can perform over 5,000 varieties of pathological investigations. It provides various health checkup packages starting from Rs 1,000 to Rs 8,500.

Velu sold his 36.5% stake in the Mumbai-based diagnostics chain Metropolis Healthcare to private equity investor Carlyle in 2015. He is also the promoter of Trivitron Healthcare, a medical equipment manufacturer, and an investor in Kauvery Hospital, a Tamil Nadu-focused hospital chain.

o3 Capital acted as the exclusive financial advisor to Neuberg Diagnostics for the fundraising from Kotak Alt.