International Finance Corp (IFC) said it has proposed to invest up to $16.5 million (Rs 123 crore) in a genomics-based diagnostics and research firm.
MedGenome Labs is in the process of raising a total of $31 million (Rs 231 crore), said the World Bank's arm in a disclosure.
IFC’s investment will help MedGenome to expand its diagnostics business in India and other emerging markets. The funding will also help in the growth of the research business.
Previously, MedGenome had raised $55 million (Rs 411 crore) in a fresh funding round led by LeapFrog Investments in April last year. Existing investors Sofina and Sequoia also participated in that round.
MedGenome was started by Sam Santhosh in 2013 as a spin-off from SciGenom Labs Pvt Ltd, which he had founded in 2009.
It is a genomics and clinical data-driven diagnostics and research company. The firm, which has a presence across South Asia, is headquartered in California and has a lab and research centre in Bengaluru.
MedGenome had raised $4 million in its Series A round from Emerge Ventures and Papillon Capital in 2013. In 2015, it got $20 million in a Series B round from Sequoia Capital.
In 2017, the firm raised $30 million (Rs 192 crore) in a Series C round led by Sequoia and new investor Sofina SA. The following year, it mopped up fresh funds from new investors HDFC Ltd and associates as part of an extended Series C round.
Last year, VCCircle reported that MedGenome had also raised venture debt from InnoVen Capital.
The genomics and high-end diagnostics segment is at a nascent stage in India but has been attracting private investments.
Other funded players in the segment include iGenetic Diagnostics, which is backed by Manipal Education and Medical Group as well as UK-based development finance institution CDC Group Plc; and Core Diagnostics, backed by Artiman Venture and Eight Roads. Core Diagnostics had raised venture debt from InnoVen Capital.
IFC, which has an active limited partner (LP) portfolio in India, also makes direct private equity-style investments and lends to companies in the country.
Earlier this month, it proposed to invest more in Parag Milk.