Andhra Pradeshs Rainbow Hospital Receives Investment From Abraaj Group

14 Aug 2013

Andhra Pradesh based Rainbow Hospitals is a 450-bed pediatric and maternity healthcare business that was established in 1999. Rainbow Hospitals is easily India’s largest specialized pediatric and maternity care company that has four pediatric, maternity and neonatal intensive care units, and an outpatient clinic in Hyderabad.

Dubai-based private equity firm Abraaj Group has invested in Rainbow Hospitals in partnership with the UK’s development finance institution, CDC, and is worth $17.5 million. Representing its 6th healthcare investment in the region, the investment banks on Abraaj’s long-standing partnerships with healthcare institutions in South Asia.

With 4 centers added in the last 6 years, Rainbow Hospital’s business has expanded and intends to establish beyond the state of Andhra Pradesh, with new hospitals outlined for cities such as Pune, Chennai and Bangalore, and tier two cities like Kurnool and Vizag.

Chairman and Managing Director of Rainbow Hospitals, Dr. Ramesh Kancharla welcomed the investment and said that this investment will help them expand and develop high-quality medical facilities. He also said that they can now expand the number of beds to 1000 by 2017.

The Managing Director of The Abraaj Group, Balaji Srinivas added that there is an acute requirement in the pediatric healthcare infrastructure in Indian healthcare sector due to the high maternal and infant mortality rates and high fertility, therefore, the private sector has a demanding role to play in helping to improve healthcare facilities and reduce fatalities through targeted investments. He insisted that they are confident that their investment and support, alongside CDC, will facilitate Rainbow Hospitals’ ongoing growth to help reach its objective of becoming the leader in pediatric and women’s care.”

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