The company intends to use its fresh capital to expand its radiology business via acquisition.
Neuberg Diagnostics, a diagnostic service provider with a presence in India, the UAE, South Africa, and the USA, is planning to raise $100 million by September this year. The funding will be raised two years before the company is listed, its chairman, GSK Velu, told the Economic Times.
Further, in the interview, Velu said that O3 Capital, an investment bank in Bengaluru, has been appointed as the company’s investment banker. The company is also in talks with potential investors.
The company intends to use its fresh capital to expand its radiology business via acquisition, as per the Economic Times report. Velu said, "Within two years, we want to list the company; we are doing the fundraise for some more M&A ramp-up.” He further said, “With the proposed fundraise, we hope that our revenue will double in the next couple of years.”
In the next two years, through an initial public offering, the company aims to raise $300 million. Velu also stated in the report that Neuberg's revenue surpassed ₹1,000 crore in FY24, with approximately 85 per cent generated from India. The remaining revenue was generated from international markets.
Recently, in December 2023, the Minister of Youth Welfare and Sports Development, Udhayanidhi Stalin of Tamil Nadu, inaugurated Neuberg Diagnostics’s national reference laboratory. The 50,000-square-foot facility accommodates genomics, transplant immunology, molecular diagnostics, proteomics, and metabolomics testing. It also includes a wellness center, a corporate office, integrated diagnostics, and a genomics laboratory.
According to Velu, for network expansion, the company has spent around ₹1,000 crore. While Neuberg mainly operates in genome testing and pathology, it also entered radiology diagnostics through a partnership with Pulse Diagnostics, which is based out of Kolkata.