LeapFrog Investments to Invest in India’s Healthcare Sector
By Rishika Sadam
Aug 28 (Reuters)
Global private equity firm LeapFrog Investments plans to allocate $80 million to $100 million in India’s healthcare sector over the next two years. This decision is driven by the increasing demand for medical services.
The rising insurance coverage and the growing focus on diagnostics and preventive care in India, which has high rates of chronic diseases, have significantly boosted healthcare spending. The healthcare sector in India was valued at approximately $180 billion in 2023 and is projected to reach $320 billion by 2028, according to government data.
Major Deals and Investment Focus
The healthcare and pharmaceutical sector registered 594 mergers and acquisitions and private equity deals worth over $30 billion between 2022 and 2024, as per data from Grant Thornton Bharat and the Association of Healthcare Providers India. A notable transaction includes KKR’s acquisition of Medicover Hospital’s India business for €1.2 billion ($1.4 billion).
LeapFrog is currently assessing investments in an asset-light, single-specialty healthcare provider. According to Biju Mohandas, the firm’s global head of healthcare, the focus will also include hospitals, especially those servicing patients outside major cities, alongside specialty-care providers in maternal and child health, ophthalmology, and oncology.
“Our investment thesis centers on two key factors: increasing insurance penetration and a significant disposable income that enables access to quality healthcare,” Mohandas stated.
Existing Investments and Future Opportunities
LeapFrog’s current investments in India feature diagnostics provider Redcliffe Labs and the digital health platform Healthify. The firm is also looking into opportunities in the pharmaceutical and medical equipment sectors.
Financed by an $808 million fund and associated co-investment vehicles, LeapFrog has over $1 billion for deployment across Asia and Africa. Although a significant portion of the capital has already been used—including recent investments in the Philippines and Vietnam—Mohandas emphasized the considerable investment opportunities available in India in the upcoming years.
($1 = 0.8589 euros)
(Reporting by Rishika Sadam; Editing by Janane Venkatraman)
