Big-ticket transactions lift funding momentum

Healthcare, pharma dominated the week with several $100 mn-plus deals

Private equity and venture capital funding momentum gained traction last week, driven by several large transactions exceeding the $100 million mark, with healthcare and pharmaceutical sectors witnessing notable activity in both funding and consolidation.

Startups cumulatively raised about $561 million, about 21% higher than the preceding week. However, funding volume remained steady with the closure of 23 transactions.

Activity in the mergers and acquisitions space was also slightly higher with five such deals during the week, including two in the healthcare and pharmaceuticals space.

In the week’s largest transaction, e-pharmacy startup Pharmeasy’s parent company API holdings raised ₹1,804 crore ($216 million), in a round led by Manipal Education and Medical Group (MEMG) as well as existing investors, but with a 90% valuation cut.

The company was valued at around ₹5,904 crore ($710 million) post-investment, down from $5.6 billion in 2021.

Non-banking financial company (NBFC) U Gro secured about ₹1,322 crore in fresh capital through compulsorily convertible debentures and warrants. Existing investor Samena Capital led the round with about ₹500 crore.

Hedge fund Aregence also participated alongside family offices. U Gro’s founder, board members and management also pitched in with ₹16.3 crore.

The fundraising exercise, however, is due for shareholder approval.

Simultaneously, the firm’s board has also approved the acquisition of ‘MyShubhLife’,

a Bengaluru-based fintech platform for about ₹45 crore.

Among other big-ticket transactions closed in the healthcare and pharma space, Morgan Stanley’s Asia PE fund and healthcare-focused investor InvAscent jointly picked up a controlling stake in Maiva Pharma Pvt Ltd, a sterile injectables manufacturer

for about $120 million.

The deal involves an infusion of primary capital into Maiva and purchase of shares from existing investors, marking the firm’s first PE fundraising.

Among smaller, yet significant fundraises, Charge Zone, an electric vehicle charging network company, secured $19 million from UK-government’s development finance body, British International Investments (BII).

The proceeds of this fundraise will help the EV charging network company establish about 1,500 EV super charging stations over the next 18 months.

While smaller deal activity continued to remain strong, with 13 fundraises valued below $10 million during the week, the value of six transactions were not disclosed.

Activity in mergers and acquisitions saw some robust healthcare play, with Manipal Hospitals, based in Bengaluru, picking up Singapore’s state investment firm, Temasek’s stake, in Kolkata-based Medica Synergie Pvt Ltd, making it an 87% shareholder in the company.

Temasek is believed to have made an over two-fold return on its investment in less than two-and-a-half years.