Diagnostic lab chain Sterling Accuris Diagnostics on Monday said it has inked a pact to raise Rs 250 crore from a fund managed by Morgan Stanley Pvt Equity Asia in order to expand operations.
Sterling, which started operations in 2016, has over 1,000 employees and operates around 150 labs and collection centers in Gujarat, Delhi, Rajasthan and Madhya Pradesh.
The company is aiming a revenue of around Rs 250 crore in the current fiscal year.
"As diseases become more complex, the need for their quick and accurate diagnosis through testing will become more critical," Sterling Accuris Chairman Girish Patel said in a statement.
This will lead to increased customer preference towards organised pathology lab networks, he added.
"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 will help the team accelerate the execution of our expansion plan," Patel noted.
During the last three years, Sterling 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 the fund raise would help it penetrate deeper in existing markets and enter new geographies.
Morgan Stanley Pvt Equity Asia India Managing Director and Co-Head Arjun Saigal noted that 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 organised chains.
"A few strong companies have capitalised on this by adopting new technologies, expanding into new geographies and maximising 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," he added.
Healthcare is a core focus for Morgan Stanley PE and this will be the third investment in the Indian healthcare space, Saigal stated.
