Indian oncology hospital chain Omega Hospitals has raised Rs5bn ($59.79m) from a fund managed by Morgan Stanley Private Equity Asia in its first private equity fundraise.

The Hindu reported that the investment in Omega Hospitals’ parent company, the Hyderabad Institute of Oncology, will support the company’s ambitious expansion plans across multiple Indian states.

Omega Hospitals will use the financing to fund its growth in Telangana, Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and West Bengal.

Led by surgical oncologist and managing director Dr Mohan Vamsy, Omega Hospitals is India’s second largest cancer-focused hospital chain.

The company was founded in 2010 and currently employs 5,000 people, with at least ten hospitals in various cities and a combined capacity of 1,400 beds.

It offers 24/7 emergency care and has provided treatment for more than 105,000 patients since being established.

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The partnership with Morgan Stanley PE Asia aims to expedite Omega Hospitals’ efforts to provide comprehensive cancer care services across India, which has become more urgent with the rising incidence of cancer in recent years.

Dr Vamsy said the company was ‘excited’ to develop into India’s largest cancer care chain over the coming years.

The company’s growth strategy includes both organic expansion and inorganic acquisitions.

Omega Hospitals president Haragovind said: “The plan is to grow the business through a combination of organic expansion and inorganic acquisitions across the markets.

“The funding from Morgan Stanley will catalyse our growth plans and help establish a leadership position in cancer care.“

Morgan Stanley PE Asia MD and co-head Arjun Saigal said: “From an Asia perspective, we are seeing a significant opportunity in the Indian single specialty hospital space.

“This will mark our second investment in an Indian cancer hospital chain within a span of 12 months.“