HealthQuad marks fourth exit from maiden fund; sells stake in Asian Institute of Nephrology and Urology 

HealthQuad is currently on the road to raise its third fund with a targeted corpus of $ 300 million, according to media reports.

Healthcare-focused venture capital fund HealthQuad has completed its exit from the Asian Institute of Nephrology and Urology (AINU), a single-speciality hospital network dedicated to urology and nephrology, with a 4x return on its investment, a senior executive of the fund told Moneycontrol.

This also marks the fourth exit for HealthQuad’s maiden venture capital fund of Rs 75 crore, raised in 2016.

HealthQuad is currently investing out of its second fund, a much larger one with a corpus of $162 million. The firm's investments include companies such as HealthifyMe, Medikabazaar, AINU, THB, Impact Guru, Ekincare, Qure.ai and Stanplus.

“Over the next 12 to 18 months, we will exit Fund I completely,” said Dr. Pinak Shrikhande, Managing Director, HealthQuad.

The AINU investment

The fund invested in AINU in 2016 to help the company build a pan-India single speciality hospital chain focused on nephrology and urology.

AINU was acquired for Rs 600 crore as part of a majority acquisition by Asian Healthcare Holdings, backed by TPG Growth and GIC.

“We are on the right side of the investment cycle as far as healthcare delivery is concerned,” said Shrikhande. “We have done our part in the growth of AINU and now it is time for a larger, more strategic player to look at this, to take it beyond what we had done.”

Starting from a single facility in Hyderabad, AINU has scaled up to a total of seven facilities across Hyderabad, Chennai, Siliguri and Vishakhapatnam, increasing bed capacity five times, while its patient volume has increased by 200 percent.

Founded in 2013 by Dr C Mallikarjuna and Dr P C Reddy, AINU offers comprehensive clinical services in urology and nephrology. Currently, it operates 500 beds across its seven hospitals. It has served over 400,000 patients and conducted 50,000 procedures.

HealthQuad’s second fund of $162 million has been deployed about 65-70 percent so far, across 12 investments. It is currently on the road looking to raise a third fund with a targeted corpus of $300 million, according to media reports.

The latest fund will focus on areas such as cell and gene therapy, vaccines, biosimilars, medtech, medical equipment, single speciality assets and contract research organisations, in addition to its existing areas of interest.