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TA Associates makes minority investment in Dr Lal PathLabs

Private equity firm TA Associates has made a minority investment in Dr Lal PathLabs, one of India’s largest chains of pathology laboratories, by purchasing half of Sequoia Capital’s stake.

Sequoia Capital has been an investor in Dr Lal PathLabs since 2005.

Dr Lal PathLabs was founded in New Delhi in 1949 by Dr. (Major) S.K. Lal as a single laboratory in central Delhi.

Today, the company is one of the country’s largest diagnostic networks comprising two central laboratories, 55 satellite laboratories, 850 collection centres and 2,500 pick-up points.

“Dr Lal PathLabs is an exciting growth story and a highly compelling investment opportunity,” says Naveen Wadhera, director at TA Associates Advisory who will join the company’s board of directors. “Over the last 60 years, LPL has made a name for itself, particularly in Delhi and the National Capital Region, by providing the highest quality diagnostic lab tests and service levels to consumers. The company has achieved especially strong growth recently under the leadership of Dr. Lal and Dr. Manchanda, and we anticipate significant growth opportunities through geographical expansion and the strong secular drivers propelling the Indian healthcare industry.”

“We are happy to partner with TA Associates to continue to support the ambitious growth plans of the company,” adds Sandeep Singhal, managing director, Sequoia Capital India. “I am confident that Dr. Lal and Dr. Manchanda, who have built one of the strongest healthcare franchises in India, will continue to out-execute and out-perform competition in this space.”

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