ET Bureau Sep 18, 2019, 08.47 PM IST

MUMBAI: Venture Capital fund Sequoia Capital and IDFC-backed eyecare hospital chain ASG Eye Hospitals has raised Rs 308 crore from clutch of investors led by Foundation Holdings. The company will use the funds to grow organically and inorganically, the company said in a release Wednesday.

Founded in 2005 by AIIMS alumni Dr. Arun Singhvi and Dr. Shashank Gang, ASG has 33 centers in India, Africa and Nepal. In 2012, Sequoia invested $11 million in the company over two tranches and in 2017, IDFCNSE -0.14 % invested Rs 75 crore in the company.

“This investment will allow ASG Hospitals to pursue organic and inorganic expansion strategies to facilitate the consolidation of the highly fragmented eye healthcare services sector, a $4.4 billion opportunity in India alone. Bringing its industry leading full-service hub offering to its regional partners will result in service offering enhancements for the patients in these micro markets,” said Aakash Sachdev, Managing Director of Foundation Holdings.

Foundation Holdings is a UAE-based family investment office that has interest in sectors such as healthcare, consumer and education. Earlier this year in July, Foundation Holdings also closed its maiden education transaction in India. This $100 million joint venture platform will formally be branded and launched later this year. Foundation Holdings intends to deploy a total of $275 million in India since 2016.

As per CRISIL, owing to the rising proportion of ageing population, high prevalence of eye disorders, innovative models for improving penetration of medical facilities, increasing disposable income and rising insurance penetration, the eye healthcare delivery market is expected to reach $ 4.4 billion by 2020, with a compounded annual growth rate (CAGR) of 12% over FY15-FY20. Surgery has a majority share in the market accounting for over 80% of the market while outpatient (consultation and diagnosis) account for the remaining around 20%.