Apollo Health & Lifestyle raises Rs 450 cr growth capital from World Bank’s arm IFC

This investment will fuel AHLL’s expansion plans and fulfill its vision of bringing healthcare of international standards within the reach of 20 million patients each year by 2020. AHLL will use IFC’s equity investment to expand its network of Clinics, Cradle and Diagnostics centres across India. The investment will create multiple job opportunities across India for healthcare professionals, including doctors, nurses, and technicians. 

Sangita Reddy, Joint Managing Director, Apollo Hospitals Enterprise Ltd said, “Through this investment, we endeavour to elevate the standard of healthcare to the next level. Being at the forefront of disease management in India, AHLL feels a strong sense of responsibility to align its expansion plans with the needs of the country. Given the immense potential and the need for quality healthcare delivery at affordable prices, AHLL will continue to expand through both organic and in-organic means and is committed to enhancing the patient experience and medical care offered by the current network. We have always been proactive in offering healthcare to meet the changing patterns of diseases and constantly strive to make quality medical care accessible to all.”

Commenting on the investment by IFC, Neeraj Garg, CEO - Apollo Health and Lifestyle Ltd. said, “AHLL operates across 7 verticals and we have multiplied our network and revenues over the past 3 years. In the next five years, we are looking at growing our revenues significantly and expanding our network, particularly of Apollo Clinics, Apollo Diagnostics and Apollo Cradle. We are already market leaders in multi-specialty clinics, diabetes clinics, women & children’s hospitals and surgical centres and the plan is to consolidate this leadership.”

Chris McCahan, Chief Investment Officer – Global Health, IFC, said “Healthcare needs in India are huge, including in terms of adequate healthcare infrastructure and availability of skilled healthcare professionals. Globally and in India, IFC’s healthcare strategy focuses on supporting private sector companies that aim to improve access to integrated health services and contribute to overall health systems. In addition to funding directly, we also try to mobilize funding from other global investors towards this broader objective.” 

“This investment is probably the largest ever private equity growth capital investment in the primary healthcare segment in India. It reflects the strength of the team that AHLL has built and the leadership position of its formats. We currently serve over 10,000 customers daily, and with this next round of expansion, we shall be able to extend the Apollo brand of clinical expertise and ‘tender loving care’ to many more people in the cities we serve and also extend to new cities”. he added.

“Our investment in Apollo reflects our commitment to private sector supporting the delivery of better health outcomes. It addresses issues of access, quality, and affordability across the country,” said Henrik Elschner Pedersen, IFC Senior Manager – Consumer and Social Services – Asia. “Since 2005, IFC has made multiple rounds of debt and equity investments in Apollo Hospitals to help the company with its expansion plans and increase access to affordable healthcare in the country.”  

Apollo’s strategy is to provide the complete continuum of care so that patients can experience the Apollo brand of care seamlessly from home to the tertiary care hospitals. AHLL operates a range of formats that fill the space between home care and tertiary care hospitals. AHLL currently operates multi-specialty clinics (Apollo Clinics), Diabetes Clinics (Apollo Sugar), Diagnostics (Apollo Diagnostics), Dental centres (Apollo White), Dialysis, Women & Children hospitals (Apollo Cradle), Fertility centres (Apollo Fertility) and Surgical Centres (Apollo Spectra) across India, with a presence in 17 states and having over 400 customer touch points. 

IFC is the world's largest multilateral investor in private healthcare, with an active portfolio of about Rs. 117 billion of health investments. IFC investments in the sector are aimed at promoting greater access to affordable, high-quality healthcare. In India, IFC’s healthcare investments are over Rs. 32 billion, representing 28 percent of its global healthcare portfolio.

The healthcare segment has seen tremendous growth in the last decade, growing at over 15%.  AHLL's portfolio is uniquely positioned to cater to the healthcare needs of the rising Indian urban middle class. Currently, the Apollo Clinics division has 72 Clinics spread across the country and is aggressively looking at setting up new clinics whilst also expanding its’ diagnostic division which is already present in all major district HQs of the southern states and is expanding into East India currently. With 12 Spectra hospitals across the country, 42 Diagnostic labs, 200 plus patient care centre and 1000 plus collection points under Apollo Diagnostics and 8 Cradle hospitals, AHLL expects these two formats to aggressively drive growth in the next few years. In addition, over the next three years, AHLL is looking at adding another 10 Cradle hospitals across the country.