Helion Ventures has made its exit from dental care startup Today’s Healthcare, after finding the segment unattractive in less than three years, reported ET. The firm invested Rs 27 Cr. for a 40% stake in the operator of the Denty’s chain. The Clove Dental chain, run by Star Dental, bought the stake.
Helion Ventures had been planning to exit the startup for several months as the investment didn’t yield the desired result. The deal was confirmed by ET through Sekhar Chennupati, managing director of Today’s Healthcare.
Amrinder Pal Singh, chief executive of Star Dental, said, “Helion’s 40% stake was bought over by Clove Dental and Dr Chennupati has been appointed as a member in the board of Clove with a minority stake post acquisition.“
“Venture capital firms should desist from investing in businesses based on the traditional model as the variable costs, like real estate costs, are very high and estimation of footfalls is a tedious task,“ the person said. “It’s a playground for private equity players and not venture capital firms.“
Clove Dental, after the acquisition of Denty’s, plans to open 460 clinics by 2021, taking its total to 600.