Kotak Investment Advisors Limited (KIAL), the alternative assets arm of Kotak Mahindra Group, said it has invested Rs 940 crore ($109.4 million) in India’s Neuberg Diagnostics, as it readies itself to list on the Indian bourses.
Neuberg has over 250 labs in 250 Indian cities and claims to be the second-largest genomics player in India specialising in newborn screening & reproductive genomics testing.
“This funding will enable us to enhance our capabilities in the areas of personalised medicine, integrated diagnostics and organically expand our footprint across the country,” said GSK Velu, Founder & MD of Neuberg, in a statement.
The investment was from Strategic Situations Fund II, which has a capital commitment of $1.4 billion and targets returns by primarily investing in distressed/stressed or special situation opportunities in India.
Its other investments include OmniActive Health Technologies, Jindal Stainless Steel, HKR Roadways, and Prius Commercial Projects.
Kotak Alternate Asset Managers (KAAML), the owner of KIAL was established in early 2005, and focuses on alternate asset management and investment advisory businesses. It has raised, managed or advised over $22 billion across different asset classes, including Private Equity, Real Estate, Infrastructure, Special Situations, Private Credit, and Investment Advisory.
“We are confident that this strategic investment will play a key role in increasing the scale of Neuberg and help the company get ready for its upcoming IPO,” said Rahul Shah, Partner at Kotak Alternate Asset, said in a statement.
Kotak’s investment in Neuberg comes as India witnesses an unprecedented demand for healthcare amid an ageing population and rising disposable incomes. Last year, a cumulative $5.67 billion flowed into Indian healthcare firms, from traditional hospitals to medical robotics startups and healthcare financing companies.
The lion’s share of the healthcare investments in India last year came from PE firms — around $5.27 billion across 50 deals. While this is only a fraction of the overall $27.7 billion invested by PE firms in the country in 2024, healthcare was their top target sector, according to Venture Intelligence data.
Among significant investments in the healthcare sector last year, KKR acquired medical devices company Healthium Medtech in May from Apax Partners for $840 million. The global PE giant also bought a controlling stake in $300 million in Baby Memorial Hospital in July. Meanwhile, Advent International, TA Associates, and Platinum Equity invested in Apollo 247, Vee Healthtek, and Inventia Healthcare, respectively.
