Tata Capital Healthcare Fund, the healthcare and life sciences-focused private equity arm of financial services company Tata Capital Ltd, said Thursday it has invested in medical devices manufacturer Harsoria Healthcare Pvt Ltd.
The growth-focused PE firm, which concluded the final close of its second vehicle in March 2022 and has deployed about 90% of its corpus, led a $20 million (about Rs 170 crore) investment in Harsoria. The equity stake acquired remains undisclosed, the firm said in a statement.
This development comes less than two months after VCCircle reported that Tata Capital Healthcare Fund had emerged as a frontrunner to invest in the export-centric medical devices maker Harsoria.
The funding round also included participation from other investors such as Utpal Sheth, Ashish Kacholia and the LNB Group.
Harsoria plans to utilize the capital to expand manufacturing capacities, enhance R&D efforts, and drive business development, according to the statement.
Candle Partners acted as the financial advisor to Harsoria and its shareholders for this transaction.
Founded in 2002, Harsoria is a fully integrated manufacturer of single-use medical devices. The company specializes in CE-marked medical disposable products, including catheters, tubing sets, needles, and oxygen masks. The CE mark certifies compliance with the European Union’s quality standards.
Harsoria employs nearly 2,000 individuals across its two manufacturing facilities in Gurugram and Baddi, producing approximately 1 million devices daily. It exports to over 60 countries, with exports accounting for 90% of its revenues.
The company reported net sales of Rs 184 crore for the fiscal year 2022-23, up from Rs 153 crore in the previous year. However, its profit declined to Rs 14 crore from Rs 16 crore during the same period, as per VCCEdge.
Tata Capital Healthcare Fund is sponsored by Tata Capital Ltd, a unit of Tata Sons. The PE firm has invested in 19 companies and scored seven exits. It has so far raised over $200 million across its two funds.
Its most recent bet involved an investment of $10 million in Mumbai Oncocare Centre, an operator of daycare centres to treat cancer. It has also invested in Linux Labs, Atulya Healthcare, Deeptek Inc, Anderson Diagnostic Services, Sakar Healthcare, and dialysis chain Apex Kidney Care in the past.