Temasek, TPG look to admit more investors to Cloudnine

New Delhi: Temasek and TPG Newquest are looking to onboard new investors in their portfolio company, Cloudnine Hospitals, a specialised mother and child care provider, at a $1 billion valuation, said people in the know.

The two existing investors have initiated a fundraising process that could see them collectively sell 20-30% stake to the incoming parties, as part of efforts to raise capital to scale Cloudnine's operations, the people said.

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A select group of private equity firms have been sounded about the fundraising exercise recently, they said, adding this result in a $200-300 million fundraise if the incoming investors are offered joint control of Cloudnine Hospitals along with Temasek and TPG Newquest.

However, one of the persons discounted the possibility of joint control, saying the size of the fundraise could be smaller to ensure the founders and existing private equity investors retain a sizeable holding.

Temasek and TPG Newquest currently have a controlling stake in the company.

Temasek, TPG Newquest, and Cloudnine Hospitals didn't respond to ET's queries.

Specialised areas such as pregnancy, maternity, neonatal and postnatal care, dominated by multispecialty hospitals, are expected to move out in a large way to specialised single-specialty formats. Bengaluru-based Cloudnine Hospitals has quickly set up a pan-India footprint with more than 40 centres to take advantage of this trend.

Single-specialty hospitals are seeing a rise in valuations with some formats such as maternity and childcare hospitals being valued at 30-40 times operating profits.

Cloudnine Hospitals' parent company is Kids Clinic. The company is expected to have recorded an operating profit of around ₹300 crore in the last financial year. It is yet to file its FY26 financial statements with the corporate affairs ministry.

The hospital chain was founded by neonatologist, Dr R Kishore Kumar along with co-founders, Rohit M A, M Ramachandra, and Vidya Kumar. Its specialities include maternity care, gynaecology, pediatrics, neonatology, fertility, and stem cell banking.

Cloudnine Hospitals has centres in multiple locations spanning Bengaluru, Delhi, Mumbai, Pune, Chennai, Gurugram, Ludhiana, and Chandigarh.

Among the company's early backers was venture capital firm Peak XV Partners, which exited in 2024 selling its stake to Temasek.