KKR Expands Healthcare Investment in India with $1.39 Bn Medicover Acquisition

KKR will keep Medicover India as a standalone business rather than integrating it with its existing hospital platforms, HCG and Baby Memorial.

KKR has announced the acquisition of the Indian business of Swedish healthcare chain Medicover AB in a deal worth $1.39 billion.

The deal marks KKR’s third hospital acquisition in India in three years, further expanding its presence in the country’s healthcare sector.

For Medicover, the divestment is expected to help the European chain focus its operations on its European markets, including Poland, Germany and Romania.

Established in 2017, Medicover India is a multi-specialty hospital network with 24 hospitals and approximately 4,800 beds across South and West India. It provides comprehensive care across more than 80 clinical specialties, supported by more than 1,900 doctors and advanced clinical infrastructure.

Commenting on the latest acquisition, Akshay Tanna, Head of India Private Equity, KKR, said, “We look forward to contributing to Medicover's next phase by investing behind its talent, technology, infrastructure and clinical capabilities, while reinforcing strong clinical governance and operational standards.”

“Through our investment, we look to support Medicover India's doctors and employees in enhancing the quality of care they deliver, broadening access to advanced healthcare services, and improving patient outcomes for the communities the platform serves across India,” Tanna added.

As per reports, KKR will keep Medicover India as a standalone business rather than integrating it with its existing hospital platforms, HCG and Baby Memorial.

Speaking on the latest development, John Stubbington, CEO of Medicover, said, “After careful consideration of alternatives for our India business, we have concluded that it is the right time to hand over the ownership to KKR. This is a highly value-creating transaction that will enable accelerated delivery on our strategy with focus on Europe. In addition, the transaction will ensure a stronger financial position with flexibility to capture attractive opportunities in those markets.”

Medicover entered the Indian healthcare market in 2017 by acquiring a controlling stake in Hyderabad-based Sahrudaya Healthcare, the operator of the MaxCure hospital chain.

The parent company ABC Medicover Holdings holds about a 67% stake, while the rest is owned by a team of founding doctors of Sahrudaya Healthcare led by Gundana and the company’s senior management.

In FY25, Medicover India reported revenue of $217.25 million, annual growth of 14%.

It generated an EBITDA of $25.68 million, translating into an EBITDA margin of 11.82%. However, despite the positive operating performance, the company reported a net loss of $23.7 million, according to Tracxn.

The top two specialties, cardiology and neurology, accounted for 34% of SHPL's inpatient revenues in FY2025.

The latest transaction builds on KKR’s earlier efforts to expand its presence in India’s healthcare sector and involves the acquisition of a 100% stake in Medicover India’s existing business from its current shareholders.

KKR has also committed fresh capital to support the company’s expansion and repay debt.

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