Malaysian private equity firm Creador has acquired a minority stake in Paras Healthcare through affiliate Commelina for Rs 275 crore.

Avendus Capital was the financial advisor and Khaitan & Co was legal counsel for the transaction.

Paras Healthcare currently operates a chain of five secondary and tertiary care hospitals, including two mother and child care specialty centres, in Delhi, Haryana and Bihar.

Creador’s investment comes at a time when there is a nascent interest in healthcare services that cater to middle and lower income groups, but very few successful models.

Gurgaon-headquartered Paras focuses on middle income patients in underserved regions of north India and has demonstrated strong growth and profitability, according to Creador.

Paras’ revenue has grown at a 35 per cent compound annual growth rate in the past three years to Rs 440 crore in 2016-17, from Rs 180 in 2013-14. Over the next four years, Paras expects to construct and acquire on lease two hospitals in Uttar Pradesh.