Motherhood Hospital plans to raise more than Rs.100 crore through series ‘B’ funding to meet its expansion plans.
Motherhood, a speciality hospital chain of Bengaluru-based Rhea Healthcare, provides women’s healthcare and birth care services and has delivered more than 5,000 babies through its six hospitals in the last 18 months. The hospitals are located in Bengaluru (three), Hyderabad (two) and one in Chennai.
Talking to The Hindu, Rehan, Chairman, Motherhood Hospitals, said: “Today we have six hospitals. Our bed strength in the last 18 months has increased from 32 to 240. Our next step is to increase our presence in the South by building hospitals in the southern border cities, before stepping into the North. We have not closed in on any city, but, are looking for appropriate locations.”
In the first round, Motherhood raised Rs.85 crore from venture capitalists including Peepul Capital. In the second round, it is seeking more than Rs.100 crore and is likely to finalise the deal within the next few days. Using the funds, the company plans to add seven to 10 hospitals, with an average capacity of 40-50 bed each, over the next two to three years.
“From scratch we have built this hospital. Today, it has a valuation of over Rs.250 crore. First, we would like to establish a cluster of five hospitals in Bengaluru and add one or two in Chennai. With the help of borrowed funds, we will raise the total number of hospitals to 16. We will think of going public only after establishing 20 hospitals. Four more hospitals will be built using internal accruals,” he said.
Asked whether they have reached break-even, he said out of the six hospitals four had already achieved break-even. Chennai and Hyderabad would achieve it in the coming weeks.