Warburg, KKR, TPG among PE giants vying for 25% stake in Cloudnine

Mumbai: Global private equity firms Warburg Pincus, KKR, TPG Capital, Advent International, CVC Capital Partners, and Permira, along with homegrown Kedaara Capital are in the race to acquire a 25% stake in Cloudnine, India’s largest maternity and pediatric hospital chain, said people familiar with the matter.

The proposed deal is expected to value Cloudnine at about ₹10,000 crore ($1 billion), the people said.

Allegro Capital is running the sale process with the initial bids expected by July first week, they said.

Existing investor True North will make a complete exit, as part of the transaction. Others including Temasek and TPG Newquest are likely to retain their holdings, said the people cited above.

Both Temasek and TPG Newquest collectively own about 52% of Cloudnine. The promoter group owns about 10%, with the remainder held through employee stock option plans (ESOPs).

ET reported in May about Cloudnine’s plans to raise $200-300 million at a valuation of $1 billion.

True North entered Cloudnine in 2015 with a ₹400 crore investment.

Previous investors in Cloudnine include Matrix Partners and Sequoia Capital.

Spokespeople at Permira and KKR declined to comment. True North, Warburg Pincus, Kedaara Capital, CVC, TPG Capital, and Advent didn’t respond to email queries.

Bengaluru-based Cloudnine was founded in 2006 by neonatologist Dr R Kishore Kumar along with co-founders Rohit M.A, M. Ramachandra, and Vidya Kumar.

The company earned a revenue of ₹2,000 crore and an Ebitda of ₹300 crore in FY26, people said.