India’s Niva Bupa Health Insurance is raising Rs8bn ($96.08m) from new investors by selling a minority stake, reported Moneycontrol.

Temasek, India Business Excellence Fund IV (Motilal Oswal Alternate Investment Advisors) and Paragon Partners Growth Fund II are among the new investors.

Niva Bupa is a joint venture (JV) between UK-based health insurance company Bupa and Indian private equity company True North.

The investment is subject to approval from India’s Insurance Regulatory and Development Authority.

Niva Bupa claims that it covers ten million lives through its network of offices, hospitals and bank partners.

Niva Bupa Health Insurance MD and CEO Krishnan Ramachandran said: “India offers tremendous growth opportunities for the health insurance industry.

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“Our existing joint venture partners, along with the new set of investors who are coming on board, are excited about the market potential and are committed to working with us to democratise health insurance in India.”

True North partner Divya Sehgal said: “Niva Bupa has experienced significant growth in recent years. This growth is a result of synergies between True North and Bupa, along with our co-investors in our holding vehicle, Fettle Tone, and the positive role played by Faering Capital over the life of the investment.

“This latest injection of capital will play a pivotal role in propelling the company towards its long-term ambitions and strategic objectives.”

The news comes after True North reached an agreement to divest a significant portion of its stake in Niva Bupa to Bupa for around Rs27bn.

Under the agreement, True North is selling its 20% stake in Niva Bupa, increasing Bupa’s stake in the health insurer to approximately 63%.

True North acquired the stake in Navi Bupa from Max in 2019.

Following both deals with Bupa and the new investors, True North’s stake in the health insurer is expected to be 28%.