There are 2,500 beds in the Ujala Cygnus Hospital network in Delhi. The majority of the hospital network will be acquired by US-based private equity (PE) firm General Atlantic (GA) for an undisclosed sum, the company announced on Wednesday.
Three of Cygnus’s original investors Evolvence Capital, Somerset Indus Capital, and Eight Roads Ventures—will completely leave the company as part of the arrangement. Ujala Cygnus is presently managing 21 hospitals, most of which serve tier-2 and tier-3 cities, throughout five northern Indian states.
The news release from GA stated that Ujala Cygnus intended to use the investment from General Atlantic to enhance comprehensive care capabilities across important specialties in each of the markets it serves, as well as to modernize clinical and civil infrastructure throughout the Ujala Cygnus network.
General Atlantic has already contributed to healthcare initiatives in India and Southeast Asia, such as ASG Eye Hospital, KG Bio, Biofourmis, Rubicon Research, and KIMS Hospital in Hyderabad. According to General Atlantic’s Managing Director and Head of India, Shantanu Rastogi, Ujala Cygnus has built a solid reputation as a trustworthy supplier of reasonably priced, top-notch healthcare that is supported by strong clinical governance.
In addition, Ujala Cygnus could help to provide more people in need of health care and extend its reach into other parts of Northern India by promoting doctors who would like to work nearer their home cities.
With the use of an ecosystem of clinics for outreach and digital health services that offer teleconsultation, Ujala Cygnus presently runs 21 hospitals throughout five states in northern India. Tier 2 and Tier 3 cities are mostly served by the hospital chain.
According to Ujala Cygnus chairman and director Probal Ghosal, the partnership demonstrates the company’s ability to revitalize healthcare facilities in tier 2 and tier 3 cities through well-thought-out infrastructure upgrades, the hiring of qualified medical personnel, and strong standard operating procedures.
“Ujala Cygnus has increased bed capacity from 1,000 to over 2,500 beds since 2018,” he went on to say, “growing its hospital network from 9 to 21 facilities across 17 cities in five states.”
Shuchin Bajaj, founder and director of Ujala Cygnus, said, “With GA’s help, we look forward to expanding our reach and encouraging additional medical professionals to get involved with this groundbreaking initiative and the purpose of Ujala Cygnus.”
Ujala Cygnus is dedicated to expanding its influence in neglected communities and plans to employ both organic and inorganic growth techniques. These strategies may involve partnerships with nearby hospitals via revenue-sharing and lease arrangements.
Apart from General Atlantic’s investment, Ujala Cygnus has also obtained term financing from the Asian Development Bank. For this deal, Ujala Cygnus’s only financial advisor was EY India.
