LeapFrog plans up to $100 million in India healthcare investments over two years

By Rishika Sadam

Aug 28 (Reuters) – Global private equity firm LeapFrog Investments plans to invest $80 million to $100 million in India’s healthcare sector over the next two years, a top ​executive told Reuters, as it seeks to benefit from ‌the rising demand for medical services.

Expanding insurance coverage and greater use of diagnostics and preventive care in a country with high rates of chronic disease have boosted healthcare spending. India’s healthcare sector was valued at about $180 billion in ‌2023 ​and is expected to grow to $320 billion ⁠by 2028, government data ⁠showed.

The healthcare and pharmaceutical sector recorded 594 M&A and private equity deals worth over $30 billion between 2022 and 2024, according to data from advisory firm Grant Thornton Bharat and the Association ​of Healthcare Providers India.

KKR’s deal to acquire Medicover Hospital’s India business for 1.2 billion euros ($1.4 billion) is among the latest deals.

London-based ⁠LeapFrog is evaluating an investment in ⁠an asset-light, single-specialty healthcare provider, Biju Mohandas, the ​firm’s global head and partner for healthcare, told Reuters earlier this ​month, declining to provide details.

It is evaluating investing in hospitals, ‌particularly those serving patients outside major cities, as well as specialty-care providers focused on maternal and child health, ophthalmology and oncology.

“Our investment thesis is centred on two realities — growing insurance penetration and ⁠significant disposable income with the ability to afford quality healthcare,” Mohandas said.

LeapFrog’s existing Indian investments include diagnostics provider Redcliffe Labs and digital health platform ⁠Healthify.

The firm is ‌also exploring opportunities in India’s pharmaceutical and medical ⁠equipment sectors, Mohandas said.

LeapFrog is investing from an $808 ​million ‌fund and related co-investment vehicles, giving it more ​than $1 billion ⁠to deploy across Asia and Africa.

“We have already deployed a significant portion of the capital, including recent investments in the Philippines and Vietnam, but we see substantial deployment opportunities in India over the next couple of years,” Mohandas said.

($1 = 0.8589 euros)

(Reporting by Rishika Sadam; Editing ​by Janane Venkatraman)