Mumbai: Global private equity firms TPG Capital, Advent International, CVC Capital Partners and Permira have been shortlisted for the next round of discussions to acquire a significant minority stake in Cloudnine, India’s largest maternity and paediatric hospital chain, according to people familiar with the matter.
The proposed transaction is expected to value Cloudnine at about ₹11,000 crore (around $1.2 billion) and these investors are expected to begin due diligence shortly, with binding bids likely to be submitted by early August, the people said.
The deal is likely to involve the sale of the entire 25% stake held by existing investor True North. In addition, Cloudnine may issue 5-10% fresh primary shares to the incoming investor, depending on the final valuation and capital requirements, according to the people.
True North is expected to make a full exit through the transaction, while existing shareholders Temasek and TPG NewQuest are likely to retain their holdings. Together, Temasek and TPG NewQuest own about 52% of the company, while the promoter group holds around 10%, with the remainder distributed through employee stock ownership plans (ESOPs).
A number of global private equity investors, including Warburg Pincus, KKR, TPG Capital, Advent International, CVC Capital Partners and Permira, along with domestic buyout firm Kedaara Capital, had expressed interest in the asset, ET had reported on June 4.
Spokespersons of Permira and TPG declined to comment, while emails sent to Advent International, CVC Capital Partners and True North did not elicit any responses till press time.
Founded in 2006 by neonatologist Dr R. Kishore Kumar along with co-founders Rohit M.A., M. Ramachandra and Vidya Kumar, Bengaluru-based Cloudnine has emerged as India’s leading maternity and paediatric healthcare platform.
Operated by Kids Clinic India Ltd., Cloudnine had 40 centres across major Indian cities as of March 2025. In a transformative move, the company recently acquired a 90% stake in Apollo Cradle and Apollo Fertility from Apollo Health and Lifestyle Ltd. at an enterprise valuation of ₹1,550 crore.
Following the acquisition, the combined entity will operate more than 55 centres across key markets, significantly strengthening its leadership position in women’s and child healthcare. Cloudnine reported revenue of about ₹2,000 crore and earnings before interest, taxes, depreciation and amortisation of about ₹300 crore for 2025-26, according to people with knowledge of the matter.
The company has built a strong presence across Bengaluru, Mumbai, Pune and Delhi-National Capital Region, offering a comprehensive suite of services spanning maternity care, obstetrics and gynaecology, paediatrics, neonatology, fertility treatment and stem-cell banking.
Cloudnine has attracted backing from several marquee investors over the years. Early investors included Matrix Partners India and Sequoia Capital India, which invested in 2011 and 2013, respectively. True North entered the company in 2015 with an investment of about ₹400 crore ($60 million). In 2021, TPG NewQuest (formerly NewQuest Capital) acquired Matrix’s stake and subsequently increased its exposure to the business. In 2023, Singapore’s Temasek invested around ₹500 crore, alongside a fresh capital infusion from TPG NewQuest.
In 2022, Cloudnine filed draft papers for an initial public offering to raise about ₹1,200 crore. However, the listing plans were deferred amid volatile market conditions.
India’s maternal and child healthcare market is estimated at nearly ₹30,000 crore and is expected to grow at a compound annual rate of around 15% over the next few years.
The organised segment is dominated by a handful of specialised hospital chains, including Hyderabad-based Rainbow Children’s Medicare, Bengaluru-based Motherhood Hospitals, Cloudnine and Kangaroo Care.
Private equity investors have been increasingly active in the women’s and children’s healthcare segment, attracted by strong demographic tailwinds, increasing healthcare spending and the growing shift towards organised healthcare providers.
TPG Growth is already an investor in Motherhood Hospitals, India’s second-largest mother-and-child healthcare chain. Earlier this year, Danish life sciences investor Novo Holdings acquired a 49% stake in Surya Hospitals from private equity firm Sealink Capital Partners, underscoring growing investor interest in the sector.
