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- Nearing
USD 250 million fundraising target with diverse global investor
participation - Focused
on scaling healthcare access and impact across India’s “missing middle”
Mumbai, 10th September 2025 : Somerset Indus Capital Partners announced that Fund III is in the
final stages of its close, nearing USD ~250 million, with documentation
completion underway.
The Fund has attracted strong participation from both
existing and new Limited Partners, reflecting continued confidence in
Somerset’s ‘Capital for Change’ investment philosophy.
With Fund III, Somerset remains firmly focused on
addressing healthcare needs across India’s “missing middle” by backing
innovative businesses that deliver affordable, accessible and quality
healthcare to Tier II and Tier III markets. This differentiated strategy has
resonated strongly with global investors, and led to several impact-aligned LPs
recognising the demographic transformation underway in India’s underserved
regions.
The Fund has seen commitments from a diverse set of
institutional investors, including:
- Development
Finance Institutions (DFIs): several DFIs from
Europe and the US - Global
Institutions: A global investment company and
marquee European institutions - Domestic
Anchors: One of India’s largest financial
banks - Other
Investors: Insurance companies, funds of
funds, family offices, and impact investors from Europe and Southeast Asia
“Fund III is not just the next fund; it is the evolution
of our journey. We are scaling proven models into India’s underserved Tier II
and Tier III markets, where the need and opportunity are greatest,” said Avinash Kenkare, Partner, Somerset Indus Capital
Partners
“Fund III is fast progressing toward its initial
USD 250 million target and is well positioned to go beyond, a clear vote of
confidence from global investors. India is at a healthcare inflection point,
and with Fund III, Somerset is positioned to shape this transformation,
deepening access, creating impact and sustainable value for all stakeholders,
while delivering on our ‘Capital for Change’ philosophy,” added Mayur Sirdesai, Partner, Somerset Indus Capital Partners
Looking ahead, the Fund remains on track to achieve a
potential final close by October 2025, potentially exceeding its
target. A large existing investor is also expected to join at the final close,
further strengthening the Fund’s base of Marquee Limited Partners.
Fund I and Fund II have demonstrated strong
performance. Fund I has achieved a ~4.0x DPI, while Fund II is now approaching
exits.
Notable investments include Ujala Cygnus Hospitals,
which expanded affordable care across North India, and Krsnaa Diagnostics, a
12x investment that has grown into India’s largest provider of affordable
diagnostic services. Fund III builds on this foundation, targeting India’s vast
“missing middle.”
Somerset has consistently partnered with visionary
entrepreneurs, often as their first institutional backers, to build scalable
healthcare models.
Note to Editors
About Somerset Indus Capital Partners:
Somerset Indus Capital Partners is an impact-aligned
private equity firm that invests in healthcare businesses delivering
high-quality, affordable, and accessible care across India, with focus on the
“Missing Middle.” Capital for Change reflects our conviction that creating
meaningful impact and generating strong financial returns are not only
compatible but mutually reinforcing. Guided by this philosophy, Somerset
partners with first-generation entrepreneurs through growth equity investments
ranging from $15 to $40 million, leveraging deep domain expertise to support
companies across healthcare delivery, pharmaceuticals and life sciences,
medical devices, diagnostics, and related sectors.
With an AUM of around $500 million across three funds,
the firm has invested in 15 portfolio companies across various sectors, driving
transformation and accelerating growth.
Somerset’s deep sector expertise has helped the
portfolio companies catalyse innovation and enhance patient outcomes, while
delivering growth. Their approach to responsible investing is built on a
proprietary framework that aligns with global ESG standards while creating
sustainable value.
For more details, visit: Somerset Indus Capital Partners
