Baraya Extended Care Successfully Closes Series B Funding, Raising $124 Million

Baraya Extended Care Secures $124 Million in Funding

In a significant development for long-term care in Saudi Arabia, Baraya Extended Care has successfully completed a Series B funding round, attracting a total capital investment of $124 million. The initiative, led by TVM Capital Healthcare, highlights the commitment to enhance rehabilitation and long-term care services within the Kingdom. This funding comes at a critical time, as the nation is grappling with an increasing aging population along with rising chronic conditions that necessitate specialized post-acute care services, particularly as outlined in Saudi Arabia's Vision 2030 healthcare strategy.

The funding surpassed expectations and gathered substantial support from a syndicate of prominent investors including the Olayan Financing Company, the Saudi Economic and Development Holding Company (SEDCO), ANB Capital, and SVC. The financial boost will enable Baraya to expand its network, which currently includes two outpatient rehabilitation clinics in Riyadh and Jeddah, aiming to become a leader in delivering high-quality prolonged care services in the region.

According to the Saudi Ministry of Health, a significant percentage of public hospital beds are occupied by patients needing long-term care, underscoring the urgent need for dedicated services in this area. With over 14% of acute care beds filled by long-term care patients, and even higher rates in cities like Jeddah and Riyadh, Baraya is positioned to fill these critical gaps.

Founded in 2023, Baraya has already initiated operations with a capacity to conduct over 9,000 rehabilitation sessions monthly. Plans are underway for the inauguration of its first long-term care hospital, which will feature 216 beds and is expected to open its doors by early 2026. This growth aligns with the strategic objectives of the Saudi Health Sector Transformation Program, which is focused on improving healthcare services across the nation.

Jad Halaby, CEO of Baraya Extended Care, emphasized the vital role the new funds will play in addressing the pressing healthcare needs of the region. “Our mission is to deliver a comprehensive suite of extended care and rehabilitation options. With the support from TVM Capital Healthcare, we can merge international best practices with local expertise which is essential for improving patient outcomes and overall quality of life,” he stated.

Dr. Helmut Schuehsler, the Chairman and CEO of TVM Capital Healthcare, expressed pride in the financial completion, noting that their history in Saudi Arabia strengthens their commitment to healthcare advancements. Since 2010, TVM has consistently been at the forefront, backing projects that align with the Kingdom’s healthcare objectives, including Baraya. “This funding round reflects our dedication to scaling high-quality healthcare services, and with Baraya, we are poised to make a significant impact on the sector,” he remarked.

Orhan Osmansoy, a Managing Partner at TVM, highlighted the importance of collaborative efforts, acknowledging the co-investors’ participation in addressing pressing healthcare challenges. With an ambitious scale-up plan to increase the capacity of Baraya to around 650 beds, the organization aims to adapt a hub-and-spoke model to reach more patients effectively.

The implications of this investment extend beyond Saudi Arabia. With demographic shifts and healthcare challenges mirroring those in other regions, Baraya’s scalable model for long-term and post-acute care could serve as a blueprint for similar markets, particularly in Southeast Asia.

In conclusion, the successful closing of this funding round represents not just a milestone for Baraya Extended Care but also a crucial step forward for healthcare provision in Saudi Arabia. With a clear focus on integrating quality care and innovative service delivery, Baraya is set to transform the landscape of long-term care while enhancing community health standards.

For further information about Baraya Extended Care, visit baraya.com.sa and to learn more about TVM Capital Healthcare, visit tvmcapitalhealthcare.com.