LeapFrog plans up to $100mn in India healthcare investments over two years
Global private equity firm LeapFrog Investments plans to invest $80 million to $100 million in India’s healthcare sector over the next two years, a top executive told Reuters, as it seeks to benefit from the rising demand for medical services. Expanding insurance coverage and greater use of diagnostics and preventive care in a country with high rates of chronic disease have boosted healthcare…
LeapFrog Investments, a global private equity firm, plans to allocate between $80 million and $100 million towards healthcare investments in India over the next two years, according to a top executive speaking to Reuters. The surge in demand for medical services, driven by increasing insurance coverage and the growing use of diagnostics and preventive care in a nation grappling with high rates of chronic disease, has fueled a rise in healthcare spending.
In 2023, India's healthcare sector was valued at approximately $180 billion, and forecasts project this figure to reach $320 billion by 2028, as per government data. Between 2022 and 2024, the healthcare and pharmaceutical sector witnessed 594 M&A and private equity transactions valued at over $30 billion, as reported by advisory firm Grant Thornton Bharat and the Association of Healthcare Providers India.
Among these deals, KKR's acquisition of Medicover Hospital's India business for 1.2 billion euros ($1.4 billion) stands out. LeapFrog is currently assessing an opportunity to invest in an asset-light, single-specialty healthcare provider. Biju Mohandas, LeapFrog's global head and partner for healthcare, disclosed these plans to Reuters earlier this month, although he refrained from providing further specifics.
The firm is considering investments in hospitals, particularly those catering to patients in non-major cities, as well as specialty-care providers specializing in maternal and child health, ophthalmology, and oncology. Mohandas elaborated that the firm's investment strategy hinges on two key factors: the escalating insurance penetration and the substantial disposable income available to afford quality healthcare.
LeapFrog's current investments in India encompass diagnostics firm Redcliffe Labs and digital health platform Healthify. The company is also exploring prospects in India's pharmaceutical and medical equipment sectors. Mohandas further stated that LeapFrog is deploying funds from an $808 million fund and associated co-investment vehicles, totaling over $1 billion, to be utilized across Asia and Africa.
"We have already utilized a significant portion of the capital, including recent investments in the Philippines and Vietnam, but we recognize ample opportunities to deploy the remaining funds in India within the next couple of years," Mohandas concluded.
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