Sweden-headquartered investment behemoth EQT on July 28 announced that BPEA Private Equity Fund VIII has agreed to acquire a controlling stake in Indira IVF from TA Associates and the Company's founders, Dr. Ajay Murdia, Dr. Kshitiz Murdia, and Dr. Nitiz Murdia. The founders will retain a significant minority stake and continue to lead the Company.
On July 22, Moneycontrol was the first to report that BPEA EQT has the edge over other suitors in the race to acquire Indira IVF in a transaction that is expected to value the entire firm at around $1 billion.
Indira IVF was founded by Dr. Ajay Murdia in 1988 and has since then scaled from a single clinic to a nationwide network spanning 116 centers across 20 states in India.
Today, the company is the market leader in Assisted Reproductive Technology (ART) services in India and completes approximately 40,000 IVF cycles annually, making it the largest player in India and among the top five players globally. To date, Indira IVF has successfully supported over 125,000 couples in their journey towards achieving pregnancy.
India is one of the fastest-growing markets globally for ART services and is significantly underpenetrated compared to more developed markets.
Infertility rates in India are estimated to be around 15 percent and they are expected to rise, driven by lifestyle changes, such as poor diets, stress levels and pollution.
Today, India completes around 300,000 IVF cycles annually, and over the next decade, the number of cycles done across the country is expected to grow around 15 percent at a compound annual growth rate.
This trend is supported by the rising awareness about infertility treatments, the growing middle class, declining fertility rates, and increasing marriage age.
Ashish Agrawal, Partner at BPEA EQT, said, “We see strong potential in further expanding India IVF’s presence across India and entering adjacent markets, while continuing to invest in its R&D capabilities and technology, drawing on EQT’s in-house expertise within healthcare and digitalization.”
Dr. Kshitiz Murdia, CEO of Indira IVF, commented, “Partnership with BPEA EQT is the beginning of a new phase of sustainable growth for Indira IVF. BPEA EQT is one of the largest healthcare investors globally and has a deep understanding of the IVF sector.”
Jimmy Mahtani, Partner and Co-Head of BPEA EQT India, added, "This investment aligns with EQT’s commitment to investing in companies that address critical societal needs and have the potential to impact people's lives for the better.”
BPEA EQT was advised by JSA (legal), Lincoln International, Price Waterhouse & Co LLP (transaction and tax, operational DD), Deloitte (financial and tax DD, structuring, ESG), and Awelin (digital). The selling shareholders were advised by Goldman Sachs and J.P. Morgan.
With this transaction, BPEA Private Equity Fund VIII is expected to be 35-40 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).
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