BPEA EQT, a known equity fund, with a focus on Asia, has recently agreed to purchase a significant 60% share in Indira IVF. Indira IVF is India’s leading provider of fertility services. Is considered a leader in IVF cycles. This acquisition values the company at $1.1 billion representing an investment, in the expanding Indian IVF industry.
BPEA EQT, an Asia-focused private equity fund, is set to acquire around 60% of Indira IVF, the largest fertility services provider in India and one of the top five globally in terms of annual IVF cycles. This significant deal values the chain at $1.1 billion (Rs 9,000 crore), according to reliable sources.
The acquisition process has attracted interest from prominent global investors such as Baring PE Asia EQT and Blackstone, who have submitted non-binding bids to gain a majority stake in Indira IVF. The chain’s estimated value ranges from $1 billion to $1.2 billion. As part of the deal, the existing investor, TA Associates, plans to sell its 47% holding, while the promoters will also dilute additional stakes.
TA Associates initially acquired approximately 35% of Indira IVF in 2019 for Rs 1,100 crore and later added another 12%. Now, they are seeking a significant four-fold return on their investment.
Indira IVF has demonstrated impressive performance, facilitating 125,000 successful pregnancies to date and posting a revenue of Rs 1,250 crore in FY23, with an EBITDA of Rs 375-410 crore, as reported by insiders. The Indian IVF industry is experiencing rapid growth, estimated to be a potential $ 12 billion market expanding at a CAGR of 20%.
Ashish Agrawal, Partner at BPEA EQT, expressed confidence in the opportunities offered by the growing fertility services and reproductive health sector in India. He stated that BPEA EQT sees great potential in expanding Indira IVF’s presence across India and exploring adjacent markets while investing in research and development capabilities and leveraging EQT’s expertise in healthcare and digitalization.
Dr. Kshitiz Murdia, CEO of Indira IVF, acknowledged the exciting stage of development in India’s ART sector and expressed enthusiasm about the collaboration with BPEA EQT. He highlighted their joint mission to provide world-class IVF services with exceptional clinical outcomes to more couples.
India’s fast-paced growth in the Assisted Reproductive Technology services market can be attributed to factors such as a large addressable population, increasing education levels and marriage age, declining fertility rates, and relatively low market penetration.
Indira IVF, founded by Dr. Ajay Murdia in 1988, has made significant strides since its inception, growing from a single clinic to a nationwide network of 116 centers across 20 states in India. With approximately 40,000 IVF cycles conducted annually, the company has become a market leader in India and is among the top five players globally in the Assisted Reproductive Technology services sector.
