Marquee Venture Capital firm Matrix Partners India has announced its exit from Cloudnine Group of Hospitals, as it has successfully completed its investment term with the group.
Co-founder and Managing Director of Cloudnine Group of Hospitals Rohit M A told DH that the exit process with Matrix partners will take about three months for completion. Matrix is the first investor in the hospital to initiate the process for an investment exit.
It has invested in Cloudnine from 2011 in multiple opportunities for around Rs 100 crore. This includes investment funded through its first round, and it had also reinvested in subsequent investments rounds thereafter.
Investment banking firm Spark Capital has been appointed to facilitate the process. Cloudnine started its first unit in 2007 in South Bengaluru, and began expanding with the investment from Matrix Partners.
Currently, Cloudnine is present in 18 locations across six cities in India and continues to add about five hospitals in different cities every year.
During this exit process with Matrix Partners, Cloudnine is also looking at other investors to participate in this round. “Sequoia Capital invested in Cloudnine in 2013, and India Value Fund (True North) invested in 2015. Both Sequoia Capital and True North will continue to stay invested in the group and have invested over Rs 350 crore in the company,” Rohit said. The group will continue to grow in the regions that it operates in and also explore new geographical opportunities within the country.
“We will continue to add about five to six new units every year as we have done in the recent past, with focus on clinical outcomes, innovation and consumer engagement physically and digitally as well,” he said.
“From the time Matrix Partners first invested with us, we have achieved more than 10-fold growth on the number of beds, consumer goodwill, and dedicated clinician network and support workforce,” he added.