Tata Capital Healthcare Fund II Prepares for Fund III to Expand Social Impact
News Synopsis
Tata Capital Healthcare Fund II (TCHF II), a prominent healthcare-focused investment fund, has successfully deployed 90% of its $130 million corpus and is now gearing up for its next phase with the planning of Fund III. Backed by Tata Capital Limited, a subsidiary of Tata Sons, TCHF continues to make significant strides in addressing critical healthcare gaps in India while delivering robust returns to investors.
Key Milestones of Tata Capital Healthcare Fund II
In the financial year 2023-24, TCHF II investments achieved remarkable milestones:
-
1.7 million direct health beneficiaries served, marking an 18% year-on-year growth.
-
41 new jobs created for every $1 million invested, surpassing the target of 26 jobs per $1 million.
-
A 30% Y-o-Y increase in women employees, with women now comprising 27% of the workforce across portfolio companies.
Currently, 6,350 employees are engaged across nine portfolio companies of TCHF II, which together operate 300 healthcare facilities and deliver over 160 million healthcare products and services volumes annually.
Success of TCHF Funds I and II
Visalakshi Chandramouli, Managing Partner at Tata Capital Healthcare Fund II, stated:
“TCHF II has committed around 90% of its Fund II and is currently firming up its plans for Fund III. Meanwhile, TCHF, along with co-investors, is continuing to build its investment pipeline and is actively scouting opportunities across its core sub-segments of healthcare delivery, pharmaceuticals, and medical devices.”
Since its inception, TCHF has raised over $200 million through two fund vintages—TCHF I (2012) and TCHF II (2022). Together, these funds have invested in 18 companies, with seven successful exits from investments such as Sai Lifesciences, Shriji Polymers, and Intas Biopharmaceuticals.
The funds have delivered an average 2-2.5x return on investments, showcasing their financial viability while maintaining a focus on social impact.
TCHF II Portfolio Companies and Social Impact
TCHF II has invested in nine companies that operate across diverse healthcare segments:
-
Atulaya Healthcare
-
Anderson Diagnostics
-
Deeptek
-
Apex Kidney Care
-
Mumbai Oncocare Centre
-
Noble Plus Pharmacy and Skin Care
The fund aims to address unmet healthcare needs by supporting innovative solutions in diagnostics, dialysis services, and specialty pharmaceutical products. Companies like Apex Kidney Care and Anderson Diagnostics are involved in public-private-partnership (PPP) projects across states, focusing on dialysis services and diagnostics to bridge critical healthcare gaps.
Chandramouli emphasized, “TCHF II continues to be a catalyst for meaningful change, addressing India's critical healthcare needs. On average, the fund is looking for investments that will make a social impact by addressing unmet needs in disease areas or in terms of technological solutions.”
Focus on Emerging Markets and Women Empowerment
Tata Capital Healthcare Fund TCHF has also directed investments into contract development and manufacturing organizations (CDMOs) and pharmaceutical companies focused on specialty products and emerging market exports. This strategic focus not only drives economic growth but also fosters innovation in niche areas of the healthcare sector.
The portfolio companies have also emphasized inclusivity, with women employees accounting for 27% of the workforce—a notable increase that aligns with the fund's commitment to social impact and equality.
Future Plans and Vision for Fund III
With Fund II nearing full deployment, TCHF is now exploring opportunities to launch Fund III. This move reflects the fund's long-term commitment to scaling financial support for healthcare innovation in India.
Chandramouli highlighted that the fund’s core focus remains on investments that not only yield financial returns but also bring measurable social impact, especially in underserved healthcare domains.
Conclusion
Tata Capital Healthcare Fund II (TCHF II) exemplifies the powerful synergy between impactful investments and meaningful social change. With 90% of its $130 million fund corpus deployed, TCHF II has significantly contributed to India's healthcare sector by addressing critical unmet needs, fostering innovation, and empowering underserved communities. Its investments have not only created 1.7 million health beneficiaries and thousands of jobs but have also driven gender inclusivity by increasing the representation of women in the workforce.
As TCHF II transitions towards launching Fund III, the fund's focus on healthcare delivery, pharmaceuticals, and medical devices remains steadfast. Its strategic investments, including partnerships in public-private projects and emerging market exports, showcase a commitment to both financial returns and social impact. The success of TCHF I and II, with an average 2-2.5x return on investments and seven successful exits, underscores its robust investment framework and long-term vision.
The planned Fund III is poised to build on these achievements, expanding TCHF’s impact while addressing India's evolving healthcare challenges. With a proven track record and a clear focus on innovation, inclusion, and sustainability, Tata Capital Healthcare Fund stands as a beacon for transformative healthcare investments in India. By bridging gaps in critical healthcare areas and empowering stakeholders, TCHF continues to shape a healthier, more equitable future for the nation.
You May Like
