In a significant move signaling confidence in the growth potential of India's healthcare sector, private equity firm ChrysCapital has announced a substantial investment of $70 million in Ahmedabad-based domestic formulations company, La Renon Healthcare.
This strategic investment places La Renon among a select group of Indian healthcare entities backed by ChrysCapital, joining esteemed companies such as Intas Pharma, Mankind Pharma, and Eris Lifesciences. With this infusion of capital, La Renon aims to bolster its position in the market and pursue its ambitious goal of becoming one of the top 20 pharmaceutical companies in India within the next five years.
Pankaj Singh, founder and chairman of La Renon Healthcare, expressed gratitude for the confidence shown by ChrysCapital, highlighting it as an endorsement of La Renon's capabilities. He also acknowledged the ongoing support from Peak XV Partners and A91 Emerging Fund LLP, pivotal investors in La Renon's growth journey.
Peak XV Partners, formerly Sequoia India, has been an investor in La Renon since 2015, with A91 Emerging Fund joining in 2021. However, details regarding their continued involvement post this deal were not disclosed by the formulations company.
The transaction was facilitated by investment bank o3 Capital, serving as the sole financier, underlining their role in orchestrating strategic deals within the healthcare sector.
Established in 2007, La Renon has rapidly emerged as a key player in the domestic formulations sector, boasting a robust presence in therapeutic segments such as nephrology, neurology, gastroenterology, cardio diabetic, critical care, and gynecology.
Kshitij Sheth, Managing Director of ChrysCapital, expressed enthusiasm about partnering with La Renon, citing its strong growth trajectory and leadership positions across various niche and chronic therapeutic areas. This investment aligns with ChrysCapital's track record of successful investments in the Indian pharmaceutical sector, with each venture delivering substantial returns.
ChrysCapital's recent exit from Mankind Pharma, generating over 3.5 times returns after a five-year holding period, underscores its proficiency in identifying and nurturing promising healthcare enterprises.
Overall, ChrysCapital's investment in La Renon Healthcare underscores the immense potential of India's pharmaceutical landscape and signifies a vote of confidence in the future trajectory of the domestic formulations market. As La Renon embarks on its next phase of growth, stakeholders and professionals in the healthcare industry will keenly observe its progress and impact on the broader pharmaceutical ecosystem.
