British International Investment

Rainbow Healthcare

South AsiaConsumer - Health

Established in 1999, Rainbow Hospitals is India’s largest specialist paediatric and maternity care provider, providing high-quality facilities across 11 facilities in both North and South India.

Rainbow is one of the fastest growing hospital groups in India – in 2017 it treated approximately 620,000 patients. It is pioneering paediatric care in India and providing specialist services for children that were previously not available in the country.

The company has won several awards, and was recognised as India’s leading hospital for paediatrics, maternity and infertility care by the Times of India.

This investment was made when British International Investment was named CDC Group.

We have now exited this investment. This is what we achieved.

Achieved impact

In 2013, we invested $33.6 million in Rainbow Healthcare, a specialist paediatric and maternity care provider. In May 2022, Rainbow successfully listed at Indian stock exchanges, despite a volatile macro environment.

Since our investment, the company has grown from primarily operating in one city with five units and 270 beds to pan-India multi-city operations across 14 units and 1,500 beds.
Rainbow treats one million mothers and children per year in a country that has one of the highest infant and maternal mortality rates.

During our investment, Rainbow has delivered well on the four dimensions of our Healthcare Impact Framework, developed with Imperial College (these are ‘access’, ‘quality’, ‘stewardship’ and ‘workforce’:

• Access: Rainbow treated 1.2 million patients in 2021/22. Its flagship Hyderabad units treated more than 30 per cent intensive patients from adjoining rural and semi-urban districts that had almost no secondary or tertiary care. In our impact survey conducted in 2017, Rainbow delivered the highest survival rates for extreme pre-term babies in the country, with a NICU survival rate of 97 per cent.
• Quality and Stewardship: Rainbow showed significant progress on quality and stewardship during our investment by adding five NABH (National Accreditation Board for Hospitals & Healthcare Provider) and three EDGE (Excellence in Design for Greater Efficiencies) certified units, and addressing the need for Centres of Excellence for paediatrics quaternary care with the commissioning of Rainbow Children’s Heart and Transplant Institute in 2019.
• Workforce: Rainbow has been a net contributor to India’s medical workforce. Our 2017 impact study showed that Rainbow was training 5 per cent of India’s new paediatric consultants and 9 per cent of new neonatology consultants. As of December 2021, Rainbow had 3,800 employees – of which more than 50 per cent were women. It has a high representation of women within the workforce.

Since our investment, through the Environmental, Social and Governance Committee, we have also institutionalised the environmental and social function. Rainbow has significantly improved its approach to managing environmental and social risk in its operations. This includes resource efficiency monitoring, introducing a robust health and safety training programme, a waste management procedure, HR policies and grievance mechanisms.

Expected impact

In 2013, CDC invested $17.3 million of equity in Rainbow Hospitals. We have subsequently invested a further $15 million in the company.

Our investment supported the group’s expansion from just 300 beds to almost 1,000 beds today, including expansion into key new cities such as Delhi, Bangalore and Chennai.

Since our investment, the company has consistently grown at more than 30 per cent each year. It continues to expand and aims to treat over 1 million patients every year.

We exited this investment in 2022.

India’s infant and maternal mortality rate is high and for extreme pre-term babies it is even worse. This is mostly due to a severe shortage of specialised neonatal and paediatric surgeons; only a handful of hospitals are correctly staffed and equipped to treat complicated pregnancies and babies with extreme low birth weight.

Since our investment, Rainbow has successfully treated hundreds of babies and sick children who would not have survived elsewhere. To facilitate this, it operates one of the country’s biggest patient transport operations bringing babies from rural areas up to 300km away to its flagship centres. Its hospitals achieve survival rates for extreme pre-term babies that are comparable to those achieved in the UK or US, but at a fraction of the cost.

Rainbow is also a net contributor to India’s medical workforce, training around 5 per cent of new paediatric consultants and up to 10 per cent of all neonatology consultants. It employs over 2,300 people, almost half of them women.

It is also helping to reverse the country’s brain-drain by bringing a large number of specialist doctors back to India who have been working in the UK, US and Canada.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

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    June 2024
    Project number

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    The current status of the investment (green flag for active and red flag for exited).


    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    South Asia

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.


    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    Consumer - Health

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    Investment type :
    Start date :
    February 2016
    End date :
    December 2022
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Related investments made by BII into this company:

Investment name Commitment Region Sector Start date Status
Investment 01 $17.26m South Asia Consumer - Health August 2013 Exited
Investment 03 $14.95m South AsiaSouth Asia Consumer - Health August 2016 Exited

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