Tata Capital Healthcare Fund buys stake in India’s 2nd largest dialysis chain

• In India, there are about 2 million suffering from chronic kidney disease stage-5, which signifies severe kidney dysfunction.
  
• Presently, around 21 million dialysis sessions occur annually in India, covering only about 11% of the nation's total annual demand.
  
• There is a significant gap in meeting the needs of patients, driven by issues related to accessibility, affordability, and compliance.
  

Tata Capital Healthcare Fund II (TCHF II), the healthcare-focused private equity fund under Tata Capital Ltd., has made an investment of $10 million (approximately ₹83 crore) in Apex Kidney Care (AKC) in exchange for an undisclosed equity stake. AKC is India's second-largest dialysis chain and plans to use the newly acquired capital to expand its dialysis services nationwide, operating in 180+ centres in 120 cities.

In India, there are approximately 2 million individuals suffering from chronic kidney disease (CKD) stage-5, which signifies severe kidney dysfunction. An additional 0.2 to 0.22 million CKD-5 patients are diagnosed each year. Presently, around 21 million dialysis sessions occur annually in India, covering only about 11% of the nation's total annual demand.

This points to a significant gap in meeting the needs of patients, driven by issues related to accessibility, affordability, and compliance. Dialysis costs in India can fluctuate significantly, contingent on factors such as facility location, dialysis method, and treatment frequency. Typically, monthly dialysis expenses can range from ₹24,000 to ₹48,000 on average.

Says Vamesh Chovatia, Partner, Tata Capital Healthcare Fund II, “We’re excited to partner with Apex Kidney Care, a leader in the dialysis space in the country. At TCHF II, we take a holistic approach to investing capital and backing companies like AKC that address glaring gaps in healthcare. We look forward to working closely with AKC and making high-quality and cost- effective services available to nephrology patients. We believe India needs many more Apex kind of organisations to deliver dialysis services and effectively address the healthcare need gap in the industry.”

Says Jatin Kothari, Co-founder and Director, Apex Kidney Care “Today is a milestone in the life story of Apex Kidney Care as we announce our partnership with Tata Capital Healthcare Fund II, a relationship that will strengthen our commitment to revolutionise kidney care in India. This new partnership underscores the value of our business model and our vision in delivering high quality dialysis services. The combined strength promises to open many new avenues to advance the business, and favourably touch the lives of thousands of patients fighting kidney disease.”

Tata Capital Healthcare Fund (TCHF) is a private equity fund specialising in India's healthcare and life sciences sector. This fund is backed by Tata Capital, a subsidiary of Tata Sons. With a cumulative fund size of approximately US$200 million from TCHF I (2012) and TCHF II (2022), it has supported 16 companies. The fund has already seen six successful exits.