IPO-bound Neuberg Diagnostics Secures a Whopping INR 940 Cr Investment

-The proceeds of the investment will be used towards strengthening its merger & acquisition drive as it intends to be India’s largest diagnostic chain.  

-Neuberg Diagnostics' chairman Dr GSK Velu indicated that the company is looking to launch its IPO within the first quarter of fiscal year 2024 (FY24). 

-The startup, founded in 2017 by GSK Velu, conducts more than 5000 types of pathological tests.

Chennai-based super specialty diagnostics chain Neuberg Diagnostics has raised INR 940 Cr investment from Kotak Strategic Situations India Fund II, managed by Kotak Alternate Asset Managers Ltd (Kotak Alt). This capital infusion is to support Neuberg’s inorganic expansion, CNBC TV 18 reported.

The startup, founded in 2017 by GSK Velu, conducts more than 5000 types of pathological tests. It works towards prevention and early diagnosis. The diagnostic chain employs over 2000 professionals to perform more than 4 million patient samples. 

The proceeds of the investment will be used towards strengthening its merger & acquisition drive as it intends to be India’s largest diagnostic chain.  

Further, Neuberg Diagnostics is in the process of launching its planned initial public offering (IPO). Earlier, chairman Velu indicated that the company is looking to launch its IPO within the first quarter of fiscal year 2024 (FY24). 

"This funding will enable us to enhance our capabilities in the areas of personalised medicine, integrated diagnostics and inorganically expand our footprint across the country. As we prepare for an IPO, we remain committed to making high-quality diagnostics accessible to all, ensuring that our services continue to meet the evolving needs of clinicians and patients," said Dr GSK Velu, founder & MD of Neuberg Diagnostics.

O3 Capital acted as the exclusive financial advisor to Neuberg Diagnostics in securing this investment with Kotak Alternative Investments (Kotak Alt).

Neuberg Diagnostics, as a leading diagnostic service provider in India, runs operations in the UAE, South Africa, and the US. 

The diagnostic chain offers health checkup packages ranging from INR 1,000 to INR 8,500 and processes over 20 million tests annually across 33 labs globally. 

In preparation for its IPO, Neuberg merged Neuberg Supratech Reference Laboratory and Neuberg Anand Reference Laboratory last year to streamline operations. 

Additionally, Neuberg formed a 50:50 joint venture with Pulse Diagnostics to expand its presence in eastern India.