Eye care chain ASG Hospital Pvt. Ltd on Wednesday said it has raised Rs 1,500 crore ($188 million) in a round led by new investors General Atlantic and Kedaara Capital.

As part of the transaction, Investcorp will exit while another existing investor, Foundation Holdings will stay put.

This is the largest private equity funding in India’s eye care industry after the Rs 1,050 crore raised by Dr Agarwal’s Health Care Ltd, earlier in May.

AZB & Partners advised ASG Hospital Private Limited (“ASG”) and PayGlocal Technologies Private Limited (engaged in the business of providing payment aggregator services and online payment gateway services; “PayGlocal”). The AZB & Partners team included Partners, Kunal Kumbhat and Vasudha Asher, and Senior Associate, Himanshoo Tembe.

ASG Hospital will use the fresh capital to fuel its expansion plans, it said in a statement.

“This investment further reinforces ASG Eye Hospitals’ success at attracting talented investors,” said Arun Singhvi, chairman and managing director and Shilpi Gang, co-founder, ASG Hospital, in the statement.

Aakash Sachdev, co-founder and managing director, Foundation Holdings, said that ASG Hospital plans to establish a network of over 200 hospitals within the next 36 months.

“With the imminent planned acquisition in South India and our high-quality M&A pipeline of regional players, we look forward to partner with two highly regarded and forward-thinking investors at this transformational inflection point in the history of ASG Eye Hospitals,” added Sachdev.

ASG Hospital was selected by the committee of creditors (CoC) of Vasan Healthcare earlier this year to acquire the once haloed Chennai-based eye care chain that has a strong presence in the southern region. The decision is awaiting final approval from the National Company Law Tribunal (NCLT).

ASG Hospital, which was founded in 2005 by Arun Singhvi and Shashank Gang, raised its first external funding from Sequoia Capital India in 2012 and later raised funding from IDFC Alternatives (which was acquired by Investcorp) and Foundation Holdings.

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