Verlinvest Acquires Controlling Stake In Fertility Chain Ferty9 Fertility Center

Verlinvest, an investment firm founded by the families of beer maker AB-Inbev and based in Brussels, has made its first investment in the Indian healthcare sector by acquiring a controlling stake in Ferty9 Fertility Center, a fertility chain. The company will invest $50 million in Ferty9, with the goal of building it as a platform and acquiring fertility clinics in major Indian cities. 

Verlinvest has partnered with fertility sector veteran Vinesh Gadhia, who will lead Ferty9 as its CEO (chief executive officer) and executive director of the board. Ferty9 was founded in 2013 by Dr C. Jyothi Budi and partners and currently has seven centers in Andhra Pradesh and Telangana.

The deal reportedly marks Verlinvest's first control deal in India, although the company has previously invested in Indian firms including Byju's, Sula Vineyards, Purplle and Wakefit. Further, the company plans to expand Ferty9's presence in both Andhra Pradesh and Telangana and in the top cities in the country through organic and inorganic growth opportunities. The company wants to be present in at least 25-30 cities with the money that it has committed.

The investment in Ferty9 comes as Verlinvest seeks to expand its presence in the healthcare sector, in which it has previously invested in heavily in Europe. 

"The company has been looking at opportunities in the fertility space given the growing market with increasing instances of infertility. One in 15 couples has some kind of infertility issue, and the problem is only increasing due to lifestyle changes and other issues. Verlinvest aims to be the consolidators of this space," observed Shagun Tiwari Shah, senior principal at Verlinvest. 

Manvitha Janagam, Principal at Verlinvest added that there is a lot of potential for growth across the country. Within Andhra Pradesh and Telangana, there is potential for at least 25 centres, if not more, over time. Beyond this, the company will look for small-to-medium clinic chains for inorganic acquisitions to penetrate deeper into specific regions. Verlinvest plans to replicate the same strategy in India that it has used to build healthcare platforms in Europe.