Home Private Equity Pathkind Diagnostics: Motilal Oswal Private Equity invests RS 194.4 crore in Pathkind...

Pathkind Diagnostics: Motilal Oswal Private Equity invests RS 194.4 crore in Pathkind Diagnostics


India Business Excellence Fund – IV, a fund managed by Private Equity (MOPE) on Friday said it has agreed to make a primary investment of upto Rs 194.4 crore in Mankind Pharma-backed Pathkind Diagnostics – a pathology chain with operations across 23 states in India.

Pathkind will use the proceeds for expansion in South India.

Established in 2016, Pathkind is one of the fastest growing diagnostics services chains in India with a network of over 75 labs of which 13 are NABL accredited, 2,000 exclusive collection centers and over 5,000 business-to-business clients, across 23 states.

The lab chain is promoted by diagnostic industry veteran Sanjeev Vashishta and the promoters of Mankind Pharma.

Pathkind operates in the pathology and wellness segment and offers a portfolio of over 4,000 tests

“We believe that the diagnostics industry in India is poised to grow to $30 billion over the next 8-10 years, driven primarily by increasing penetration and shift towards organized diagnostics chains,” said Vishal Tulsyan, MD and CEO of MOPE.

“Pathkind, with its focus on providing quality testing, widespread network, extensive doctor coverage, strong management team and parentage and with our investment, is well poised to be a leading diagnostics franchise in India,” Tulsyan said.

This is MOPE’s second investment in the healthcare industry, the first one being in a medical equipment company.

“Settin up labs run by qualified pathologist doctors, skilled technicians and scientists in every nook and corner of the country using state of the art technology and automated platforms, such that the patients don’t have to travel long distances for their diagnostics requirements, is our top priority. The funding will be utilized judiciously to further build on the diagnostics capabilities and capacities, educating the masses about the virtues of early diagnosis and to augment ourservices using digitization, AI, ML tools apart from other things,” said Sanjeev Vashishta, MD and CEO of Pathkind.

“This primary investment coming in Pathkind will be utilized to further develop our IT infrastructure, digital marketing and expansion into southern India making us a Pan-India player within 6 months,” said Eklavya Juneja, director and promoter Pathkind Diagnostics.

Khaitan & Co, Wadia Ghandy & Co, and Ray Legal were the legal advisors to the transaction.

MOPE is managing both private equity and real estate funds and cumulatively manages around $ 2 billion between the two asset classes. The private equity vertical focuses on providing growth capital to mid-market companies across its preferred sectors of consumer, financial services, life sciences and niche manufacturing, typically in the range of Rs 200- 500 crore. The private equity vertical has, in the last 15 years, made over 35 investments and has completely exited 14 investments.

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