Global investment firm KKR is set to acquire the Indian operations of Medicover AB in a transaction valued at approximately ₹13,000–14,000 crore (around $1.5 billion). The deal marks KKR’s third major hospital acquisition in India within the last three years and underscores its growing focus on the country’s expanding healthcare sector.
According to sources familiar with the development, the transaction involves the acquisition of the entire stake held by existing shareholders, along with a commitment to inject fresh capital into the business for expansion and debt reduction. Of the total investment, around ₹3,000-4,000 crore is expected to be infused directly into the company as primary capital. A formal announcement is likely to be made this week.
Medicover Hospitals currently operates 26 hospitals with more than 6,000 beds across Telangana, Andhra Pradesh, Maharashtra and Karnataka. The network, managed under Sahrudaya HealthCare Pvt Ltd (SHPL), has grown rapidly through acquisitions of underperforming healthcare assets and strategic expansion. The company was reportedly preparing for an IPO before its parent company decided to exit the business.
India has emerged as one of Medicover’s fastest-growing markets, recording high-teen revenue growth driven by aggressive hospital expansion. The Indian network includes multispecialty and superspecialty hospitals, women and children’s healthcare facilities, and cancer centres, supported by over 1,250 doctors.
The Swedish healthcare group entered India in 2017 through the acquisition of a controlling stake in Hyderabad-based Sahrudaya Healthcare, which operated the MaxCure hospital chain. As per Tracxn data, Medicover’s parent entity, Abc Medicover Holdings BV, owns approximately 66.9% of the Indian business, while the remaining stake is held by founding doctors and senior management led by cardiologist Dr. Anil Krishna Gundana.
For FY25, SHPL reported revenue of $217.25 million, reflecting a 13% increase over the previous year. The company generated EBITDA of $25.68 million with a margin of 11.82%. Despite improved operating performance, it posted a net loss of $23.69 million. Cardiology and neurology together accounted for nearly 34% of inpatient revenue, while the company continues to expand into high-growth specialties such as oncology.
Industry estimates suggest SHPL could generate EBITDA of around ₹400 crore by FY27, rising to nearly ₹600 crore in FY28 as recently added capacity begins contributing to earnings. Over the past seven years, Medicover has invested approximately ₹2,000 crore in its Indian operations. As of September 2025, the company carried debt of ₹2,264.5 crore, largely in the form of external borrowings from its parent company.
The hospital chain has continued to expand its footprint, including the launch of a 300-bed facility in Secunderabad and Navi Mumbai’s first advanced trauma centre. Additional hospital projects are also in the pipeline.
The acquisition aligns with KKR’s broader strategy of building a significant healthcare platform in India. After exiting Max Healthcare with substantial returns, KKR has actively pursued investments in hospitals and specialty healthcare providers. The firm acquired a controlling stake in Healthcare Global Enterprises in 2025 and has also backed healthcare ventures through its credit business.
KKR’s increasing investments reflect strong investor confidence in India’s healthcare industry, which continues to benefit from rising healthcare expenditure, growing insurance coverage, increasing demand for tertiary care services and sustained growth in high-acuity specialties such as cardiology and oncology. Industry reports indicate that leading hospital chains have been recording annual revenue and EBITDA growth exceeding 15%, supported by stable occupancy levels and improved revenue per occupied bed.
