Indiian healthcare VC fund HealthQuad has fully exited Regency Health, a multi-speciality corporate hospital group based in Uttar Pradesh. The exit transaction involved Norwest Venture Partners, an investment firm backed by Wells Fargo, acquiring shares in the company through a combination of primary and secondary investment.
The secondary investment portion of the transaction consisted of a consortium of existing investors, including HealthQuad, IFC, and KOIS, selling their entire stake in Regency Health to Norwest. HealthQuad achieved a threefold return on its investment through the exit.
This marks HealthQuad’s third successful exit from its Fund-I portfolio, which includes notable companies such as MedikaBazaar, THB and AINU. HealthQuad’s initial investment in Regency Health was made in 2017 to address the healthcare demand-supply gap in Uttar Pradesh and build a corporate hospital chain.
Over the years, HealthQuad actively worked with Regency Health, added three new facilities, and initiated the construction of three more. This expansion led to a sixfold increase in overall bed capacity since HealthQuad’s investment. Regency Health, under HealthQuad’s guidance, became the first hospital in Uttar Pradesh to establish an onco-radiation center and introduce primary angioplasty services.
Regency Health, founded in 1995, was initially listed on the Bombay Stock Exchange before being taken private in 2016 to facilitate investment from HealthQuad, IFC, and KOIS. Currently, Regency Health operates five tertiary care hospitals with a total of 700 beds across Kanpur and Lucknow, offering specialized services in various medical fields such as oncology, cardiac sciences, renal sciences, neuroscience, gastroenterology, pediatrics, and orthopedics.