Chennai: Diabetes hospital chain Dr Mohan’s Diabetes Specialities Centre has raised Series A investment of $10.23 million (Rs. 66 crores) led by Lok Capital advised Growth Fund – the third fund from Lok – and Evolvence, a private equity firm.

The chain, which started operations in 1991, would look to expand its presence across India using the funds, increasing the number of clinics from 25 to 100 in the next four years.

Speaking on the investment, V Mohan, Chairman of the Diabetes Specialities Centre, said, “We are already a known name in south India and we are looking to gain a pan-India presence. While centres are already set up in Delhi and one in coming up in Lucknow, we will use the funds to expand in tier 2 and tier 3 cities across the country.”

A portion of the funds will also be used to develop and sell the lifestyle-based healthy products such as high-fibre rice, noodles and brown rice under the Dr Mohan brand.

Venky Natarjan, Managing Partner, Lok Advisory Services, said the track record of the hospital chain for 25 years, the ability to take diabetes treatment to tier 2 and tier 3 cities and potential to scale have propelled the company to invest in Dr Mohan’s.

“We are not a healthcare-focussed fund, but when we heard that the hospital chain was looking for funds, we went ahead to fund in them, as we saw their presence in the south and wanted to create their brand image in the North as well,” he added.

Ajit Kumar, MD, Evolvence India Fund, said, “Diabetes is a growing epidemic in India and one that affects millions every year. We believe Dr Mohan’s is now poised to further expand across India.”

Source: Times of India