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Indian healthcare VC fund HealthQuadhas completely exited Regency Health, a multi-speciality corporate hospital group based in Uttar Pradesh.

The exit transaction involved US-headquartered investment firm Norwest Venture Partners, backed by Wells Fargo, acquiring shares in the company through a combination of primary and secondary investment. 

The secondary investment portion of the transaction consisted of a consortium of existing investors, including HealthQuad, IFC, and KOIS, divesting their entire stake in Regency Health to Norwest. The consortium had originally invested a total of Rs 102 crore in the company.

“Uttar Pradesh comprises 17% of India’s population yet lacks affordable and good quality private healthcare. Over time, Regency has established itself as a prominent healthcare brand in Uttar Pradesh, having developed a robust healthcare infrastructure that offers accessibility to services at affordable rates in deeply under-served markets,” said Charles-Antoine Janssen, Managing Partner at HealthQuad.

HealthQuad achieved a threefold return on its investment through the exit, said the company in a statement. The deal marks HealthQuad’s third successful exit from its Fund-I portfolio, which includes notable companies such as MedikaBazaar, THB, and AINU, it added.

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HealthQuad’s initial investment in Regency Health dates back to 2017 to address the healthcare demand-supply gap in Uttar Pradesh and build a corporate hospital chain to serve the densely populated areas with inadequate healthcare services. 

Over the course of seven years, HealthQuad actively engaged with Regency Health, added three new facilities, and initiated construction of three more, which are expected to be launched in the future. 

This expansion led to a sixfold increase in overall bed capacity since HealthQuad’s investment, said the statement. Regency Health, under HealthQuad’s guidance, is the first hospital in Uttar Pradesh to establish an onco-radiation centre and introduce primary angioplasty services, it added.

Regency Health, founded in 1995 by Dr Atul Kapoor and Dr Rashmi Kapoor, was initially listed on the Bombay Stock Exchange before being taken private in 2016 to facilitate investment from HealthQuad, IFC, and KOIS, thus providing greater operational flexibility.

Currently, Regency Health operates five tertiary care hospitals with a total of 700 beds across Kanpur and Lucknow. Over the years, the hospital group has established centres of excellence in areas such as oncology, cardiac sciences, renal sciences, neuroscience, gastroenterology, paediatrics, and orthopaedics.