TPG-backed Nova IVF buys 51% stake in Southend IVF

TPG-backed Nova IVF buys 51% stake in Southend IVF

Mumbai: Nova IVF Fertility, one of the largest service providers of fertility treatment across India, has acquired 51% stake in Delhi based IVF chain Southend Fertility & IVF. The deal will help Nova IVF to expand its footprint into NCR region. Presently, the 19-year old Southend has 5 centres in Delhi-NCR region.

Asia Healthcare Holdings (AHH), a healthcare operating platform founded by private equity fund TPG Growth, had acquired Nova IVI Fertility, India’s second largest network of infertility centres in 2019. Nova IVF Fertility was formed in partnership with IVI(Spain), in 2011.

“We believe that the sector is ready for consolidation through partnerships with clinicians and enterprises who have created a legacy in the field. In that context, Nova IVF and Southend IVF coming together in Delhi NCR unlock great value to patients seeking IVF treatment in the region,” said Vishal Bali, Executive Chairman, AHH.

Nova IVF provides assisted-reproductive therapy treatments such as intrauterine insemination (IUI), in vitro fertilization (IVF) and andrology services with 27 centres across 23 cities.

In FY20, Nova IFV has posted a revenue of Rs245 crore with a profit of Rs20 crore, against a net loss of Rs35 crore in FY19.

“India’s declining fertility rate is a cause of concern and we have to accelerate the expansion and reach of fertility-enhancing services to a larger section of couples in the country. Our partnership with Nova IVF is a merger of common ethos and respect for the science of IVF,” said Dr. Sonia Malik, Founder & Lead IVF Specialist, Southend IVF.

Nova IVI Fertility was formed in 2012 when Nova Pulse IVF, a division of Nova Medical Centers, formed a technical partnership with IVI, a Spanish chain of IVF clinics. Nova Medical Centers was founded by GTI Group and Reddy in 2009.

Nova IVF has delivered over 35000 IVF pregnancies and within our network. We welcome Southend Fertility & IVF to the Nova family and together this partnership will further strengthen the quality of IVF treatment available to patients in Delhi NCR, said Shobhit Agarwal, CEO, Nova IVF Fertility.

AHH also owns Bengaluru-based Rhea Healthcare, which operates a network of hospitals for women and children under the ‘Motherhood’ brand.

Sheares Healthcare, owned by Singapore-based Temasek Holdings, had invested $50 million in AHH in 2018 to acquire a minority stake.

About 80% of India’s IVF market is controlled by the top 500 clinics and the rest are held by unorganised entities. Major IVF service providers in India are Indira IVF, Bloom Fertility Centre, Bengaluru-based Milann, Morpheus IVF, Ridge IVF, Akanksha IVF, Bourn Hall Clinic and Jaipur-based Shivani Fertility and Mother Care.

Udaipur based Indira IVF had sold a significant minority stake to Massachusetts-based PE fund TA Associates in 2019.

India IVF services market will cross $1.5 billion by 2026, from $500 million in 2018 as the lifestyle changes, increase in stress levels drive the Indian IVF services market.

About 10-15% of married couples in India or 27.5 million couples who are actively seeking children suffer from infertility, according to a report by advisory firm EY. The increasing marital age, growing number of working women and rising alcohol and tobacco consumption are found to be the key risk factors.

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