Sterling Accuris Wellness Private Limited (Sterling Accuris), a pathology-focused, diagnostic lab chain, is pleased to announce that it has signed an agreement to raise INR 250 crore / 34 million USD of equity funds from a fund managed by Morgan Stanley Private Equity Asia.
Veda Corporate Advisors, a leading mid-market investment bank, advised the Company and its promoters on the transaction.
Sterling Accuris, which started operations in 2016, has over 1000 employees and operates around 150 labs and collection centers across 4 states of Gujarat, Delhi, Rajasthan and Madhya Pradesh. The Company is aiming to achieve a revenue of around INR 250 crores in FY22.
During the last three years, the Company has significantly expanded its lab network, invested in digital technologies and built a strong backend infrastructure to offer a wide variety of routine and specialised tests within quick turnaround times. The proceeds from this fund raise will help the Company penetrate deeper in existing markets and enter new geographies.
Sterling Accuris is promoted by healthcare industry veteran Girish Patel who is also the Chairman Emeritus of Sterling Hospitals, the largest chain of corporate hospitals in Gujarat. Sterling Accuris is headed by Rajiv Sharma, who has 25+ years of successful career in healthcare and consumer sectors with companies such as Sterling Hospitals, Johnson & Johnson and Philips.
Girish Patel, Chairman, Sterling Accuris, said, “As diseases become more complex, the need for their quick and accurate diagnosis through testing will become more critical. This will lead to increased customer preference towards organised pathology lab networks. Over the last five years, Sterling Accuris have built a strong business in the markets we operate in and the growth capital infusion from a seasoned investor like Morgan Stanley Private Equity Asia will help the team accelerate the execution of our expansion plan. We will continue with our guiding principles of building a strong customer centric brand while providing ethical and market appropriate pathology diagnostic services. ”
Rajiv Sharma, MD and CEO of Sterling Accuris, said, “Sterling Accuris is one of the fastest growing technology enabled pathology lab chain in Gujarat with strong presence in Rajasthan, MP and Delhi. We are delighted to have Morgan Stanley Private Equity Asia on board as our growth partner. The investment in Sterling Accuris is a strong validation of our unique business model and the growth potential of the segments we operate in. The investment will also enable us to expand our lab network to new geographies such as Maharashtra and NCR. We will continue to invest to build capabilities in digital technologies to rapidly grow our B2C service delivery and strengthen our R&D capabilities to develop new and innovative tests in Molecular and Genetic testing,”
Arjun Saigal, Managing Director and Co-Head of Morgan Stanley Private Equity Asia in India, said, “The diagnostic services space in India has seen a fundamental change in consumer behaviour in recent years with improving health awareness and rising preference for organized chains. A few strong companies have capitalised on this by adopting new technologies, expanding into new geographies and maximizing customer convenience. We believe that Sterling Accuris is well placed to become a leading player in the diagnostic services industry across India given its management strength, deep network and its focus on B2C diagnostics and new testing technologies. Healthcare is a core focus for Morgan Stanley PE and this will be the third investment in the Indian healthcare space.”