Somerset Indus Capital Partners, a private equity firm that invests in mid-sized healthcare companies across India, has secured $15 million from Proparco, the private-sector arm of the Agence Française de Développement (AFD) Group, for its third fund.
The investment underscores confidence in India’s healthcare sector, which is seeing growing demand for accessible, high-quality care, especially in underserved regions.
Somerset Indus is targeting a corpus of $250 million for Fund III, which will invest in companies across hospitals, diagnostics, pharmaceuticals, medical devices, and digital health niches, with a focus on Tier II and Tier III cities where access remains limited.
Earlier in October, sources told DealStreetAsia that the firm had also roped in Singapore state investor Temasek as a limited partner for the third vehicle, though this could not be independently verified.
“Proparco’s global experience and commitment to responsible investing will strengthen our ability to scale healthcare businesses while delivering returns for investors,” said Avinash Kenkare, founder and partner at Somerset Indus Capital Partners.
France and India share a long-standing partnership in innovation and sustainable development. “Proparco’s investment in Somerset Indus Fund III strengthens this relationship by supporting the growth of healthcare companies across India,” said Thierry Mathou, the French ambassador to India.
“In 2026, the India–France Year of Innovation will catalyse cooperation in healthcare across the public and private sectors,” he added.
Somerset Indus’s track record includes 15 portfolio companies since its inception in 2011, of which eight remain active. These collectively support 40 hospitals with 4,500 beds, 4,600 healthcare professionals, and 5,000 diagnostic facilities.
The firm closed its first fund at $27 million in 2013, followed by a $76-million vehicle in 2019. Its third fund is understood to be in the final stages of documentation.
Among other healthcare funds that have raised capital this year, Quadria Capital plans to deploy more than two-thirds of its $1.07 billion healthcare fund in India, reflecting investor interest in the country’s expanding healthcare and wellness sector.
