Bahrain’s Investcorp leads $67m investment in India’s Global Dental Services

Dental services market in India is currently valued at $3bn

Investcorp is an active investor in mid-market companies across consumption-linked sectors and in the real estate business in India. Photo: Investcorp

Investcorp, an alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, has led an investment totalling 545 crore Indian rupees ($67 million) in Global Dental Services (GDS), Asia’s largest dental chain and one of the top 15 dental services organisations globally.

It is the fourth healthcare investment made by the Bahrain-based company in India and its first deal in the country's dental industry, Investcorp said in a statement on Wednesday.

Founded in 2011 by Amarinder Singh, the GDS group owns and operates 340 clinics across 24 cities and 12 states in India under the brand “Clove Dental”. The group is supported by 841 dentists.

“In India, Clove Dental represents our fourth healthcare deal in the underpenetrated field of dental care that offers an attractive opportunity,” said Gaurav Sharma, head of private equity at Investcorp India.

“Investing in a single speciality segment, within health care, aligns well with our thesis of backing scaled and differentiated assets.”

The Indian dental services market is worth $3 billion currently and is expected to grow amid higher demand from patients, he added.

Investcorp, with $47.2bn in total assets under management as of June 30, including assets managed by third-party managers, is an active investor in mid-market companies across consumption-linked sectors and in the real estate business in India.

Its investments in the past four years in the world’s second most populous country included V-Ensure, NDR Warehousing, Intergrow Brands, Bewakoof.com, Freshtohome, Zolo, InCred, Citykart, NephroPlus, Unilog, XpressBees and Safari Industries.

Investcorp's healthcare deals in India include V-Ensure Pharma Technologies, Neprhoplus and ASG Eye Hospitals, in which the Bahrain-based company recently sold its entire stake to General Atlantic and Kedaara.

Globally, Investcorp has invested in Acura, Germany’s second largest dental platform.

“This partnership will empower us to prepare to achieve our expansion goals, add latest technological equipment in our clinics, bring professional, ethical and high-quality dentistry to many more Indian communities,” said Amar Singh, chief executive of GDS.

Clove Dental also operates mobile dental clinics to provide dental care to underserved communities. It also recently launched a direct-to-consumer brand called LoveMySmile, focused on smile correction products and solutions that include aligners, braces and teeth-whitening solutions.

Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region.

The company went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and is bullish about the growth prospects for its portfolio.

Earlier this week, Investcorp said it had bought a majority stake in US-based fresh produce distributor Sunrise Produce.