Permira and TPG Capital have acquired stakes in Cloudnine Hospitals from early investors True North and TPG NewQuest in a $450 million secondary transaction at a valuation of about $1.3 billion, two people familiar with the matter said.
Permira has acquired True North’s 25% stake in a $250 million transaction, while TPG through its buyout fund has bought TPG NewQuest’s holding in a $150-180 million deal, the people said.
In a secondary transaction, shareholders sell their stakes to other existing or new investors, and no new capital is injected into the company.
TPG NewQuest is a secondary private equity platform focused on the Asia-Pacific region, wholly owned by TPG.
The transaction is still subject to regulatory approvals, the people said. Once completed, Cloudnine will prepare for a public listing over a 24-36 month horizon, they added.
Both people spoke on the condition of anonymity as the discussions are still private. While Permira declined to comment, Cloudnine, TPG, True North and TPG NewQuest did not respond to Mint’s requests for a comment.
The development comes after Mint first reported in August that in Bengaluru-based maternal and child healthcare chain Cloudnine from existing investor , which was looking to sell its more than decade-old stake in the company. Allegro Capital is advising the company on the deal.
IPO plans
Earlier this year, Kids Clinic India Pvt Ltd, which operates Cloudnine Hospitals, agreed to acquire the maternity, childcare and fertility businesses of Apollo Health & Lifestyle in a cash-and-stock transaction valued at about $160 million.
The bulk of Cloudnine’s stake is held by private equity funds: True North, which first invested in 2015, Temasek, which invested in 2024, and TPG NewQuest, which invested in 2021.
Apollo holds a 9.9% stake worth ₹785 crore following its transaction in May, valuing the overall asset at about ₹7,930 crore ($825 million). The promoters own a small shareholding in the company.
The new transaction implies a valuation of about $1.3 billion, significantly higher than the valuation implied by Apollo’s investment in May.
Early investors
Founded in 2006 by R Kishore Kumar, Rohit M.A., M. Ramachandra and Vidya Kumar, is a chain of single-speciality hospitals catering to mother and baby care, including fertility, maternity care, gynaecology, paediatrics, neonatology, baby care and stem cell banking.
The company has about 40 centres across north and south India, spanning 13 cities, including Bengaluru, Delhi, Mumbai, Pune, Chennai, Gurugram, Ludhiana and Chandigarh.
It plans to set up units across various metros and tier-I cities, which is expected to reduce the company’s operational dependence in one specific area, credit rating company Icra said.
Cloudnine’s operating revenue rose to ₹1,485.6 crore in FY25 from ₹1,187.7 crore in the previous year, while its loss widened to ₹46.4 crore from ₹27.9 crore, according to Icra’s report from last year.
The company is expected to post healthy revenue growth over the near term, driven by a steady ramp-up at existing centres and improving revenue share from the new centres, Icra added.
Healthcare play
Cloudnine competes with Motherhood Hospitals, Indira IVF, Milann Fertility & Maternity, Rainbow Children’s Hospital and other large general hospital chains such as Manipal Health Enterprises and Max Healthcare, which operate expansive mother-and-child wings.
India’s healthcare provider market is expected to grow by over 10% into a $95 billion market by 2030. The single-speciality segment is projected to grow from $4.4 billion in 2025 to about $12.3 billion over the same period, Bessemer Venture Partners said in a report this year.
There is an industry-wide shift toward single speciality in India, reflecting a structural re-orientation of healthcare delivery. The traditional multi-speciality, jack-of-all-trades hospital model is giving way to focused, standardized, and patient-centric systems, the company noted.
Growth in this new class of specialty-native providers is expected to be driven by an aging population, rising insurance penetration, spend and health awareness and sustained investor interest.