Laurus Labs biotech unit raises Rs 120 crore from Eight Roads Ventures, ET HealthWorld
New Delhi: Laurus Labs on Friday said its subsidiary, Laurus Bio, has signed a definitive agreement for an equity investment of Rs 120 crore from Eight Roads Ventures and F-Prime Capital. Laurus Labs will also co-invest an additional Rs 40 crore at the same valuation.
The promoters of Laurus Bio have also been issued share warrants, exercisable up to two years from the date of issue at the same valuation.
Laurus Labs or Eight Roads Ventures have the right to invest up to an additional amount of Rs 35 crore before December 2025 at the same valuation.
Upon completion of the transaction, Laurus Labs, Eight Roads Ventures and the promoters of Laurus Bio will each hold 75%, 14% and 9% stake on a fully diluted basis.
The company will utilize the equity infusion for further expansion of its fermentation-based manufacturing capabilities in order to cater to growing customer demand.
Laurus Bio is a biomanufacturing company that uses fermentation and synthetic biology to create animal-free proteins and growth factors. Their products are used in a variety of industries, including biopharmaceuticals, food, health, and personal care.
Laurus Labs diversified into biotech in 2020 acquiring 72.55% stake in Bengaluru-based Richore Lifesciences later renamed as Laurus Bio for Rs 246.7 crores from Eight Roads Ventures and VenturEast. Laurus later increased its stake in Laurus Bio to 87.59%.
Laurus Bio is expanding its manufacturing capability by building a second recombinant protein manufacturing facility, called R2 at Vasanthanarasapura,Tumkur in Karnataka. The two units will have over 240 kilolitres of capacity.
“Eight Roads Ventures brings a global network, relevant industry experience and a strong track record of biopharmaceuticals and CDMO investing,” said
“Biomanufacturing is already being utilized across a range of industries including personal care, materials, food and nutrition and pharmaceuticals,” said Dr. Prem Pavoor, managing partner, Eight Roads Ventures India.
“We are looking forward to growing Laurus Bio into a global leader in this emerging segment,” Pavoor added.
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