Hospitals group Ujala Cygnus has entered into a partnership with US-based private equity firm General Atlantic to expand its network, it said. General Atlantic will acquire a majority stake in Ujala Cygnus, a joint communique said without giving details.

The healthcare company’s early investors, Eight Roads Ventures, Somerset Indus Capital, and Evolvence Capital, have made a full exit, it added.

Ujala Cygnus runs a network of 21 hospitals in northern India in Tier-II and Tier-III cities. General Atlantic and existing shareholder Amar Ujala will help it expand to more places in the northern region, it said.

The GA investment would be used to upgrade clinical and civil infrastructure across the network and augment capabilities across specialities, it said.

The healthcare landscape in tier II/ III markets has challenges, since it is primarily served by government hospitals and small to mid-sized nursing homes led by individual doctors, the note said.

“Despite excelling in primary care, these facilities lack a multi-speciality outlook, leading to a significant outflow of patients to nearby urban areas.” it added.

Local impact

Probal Ghosal, Ujala Cygnus Chairman and Director, said, “Since 2018, Ujala Cygnus has expanded its hospital network from nine to 21 facilities across 17 cities in five states, increasing bed capacity from 1,000 to over 2,500 beds.” The company intends to pursue organic and inorganic growth strategies, including collaborating with local hospitals through leasing and revenue-sharing models, he added.

Dr Shuchin Bajaj, Founder Director of Ujala Cygnus, pointed to the opportunity they offered healthcare professionals to make a tangible impact in their hometowns. “We’ve witnessed numerous doctors relocating from metropolitan areas to places like Agra, Varanasi, and Jammu, drawn by the prospect of delivering quality care and achieving positive outcomes in communities close to their roots.” The hospital group recently secured term loan facilities from Asian Development Bank.