Omni Hospitals in talks to raise $50 million capital

Omni Hospitals, a Hyderabad based healthcare services providing startup, is discussing a potential $50 million capital raising with many private equity players. The biggest investor in the startup, ASK Pravi Capital Advisors, has invested ~INR50 crore in the firm till now with a shareholding of 35%, and is also looking for an exit through this deal. Global consultancy giant KPMG has completed a vendor due diligence of Omni Hospitals, and Spark Capital is providing those details to a dozen PE firms for due diligence. The startup hopes to sign term sheets with prospective investors in 6-8 weeks to complete the fund-raising exercise by Sept’17.

An analyst who was abreast of the developments commented that “The Omni Hospitals management is hoping for an enterprise valuation of ~INR500 crore where it plans to divest around 40% (up to $50 million), including an exit to ASK Pravi Capital and will deploy balance funds on expansion. The equity dilution may vary depending on the interest of the prospective investors on structuring of the funds infusion ¬ a complete equity or a combination of equity and debt”.

The startup was established in 2009, and currently has six hospitals under its fold, which includes 3 in Hyderabad and one each at Visakhapatnam and Kurnool in Andhra Pradesh and one at Cuttack in Odisha with a cumulative capacity of 800 beds. It is looking to further increase it cumulative capacity by leveraging the funds from this deal.