La Renon Healthcare Secures Rs 160 Cr Investment from Avendus Future Leaders Fund
This transaction also marks Avendus Future Leaders Fund's (FLF's)first investment in its newly launched Future Leaders Fund III.
Mumbai: Avendus Future Leaders Fund (FLF), the flagship private strategies fund of the Avendus Group, has taken a minority stake in La Renon Healthcare Pvt. Ltd., one of India's fastest-growing domestic branded medicines companies. FLF purchased a stake worth INR 1.6 billion (Rs 160 crore) from two existing investors. This transaction also marks FLF's first investment in its newly launched Future Leaders Fund III.
Established in 2007 in Ahmedabad by Pankaj Singh, La Renon has emerged as a major branded domestic formulations firm focusing on chronic treatments. The company is a market leader in the nephrology segment and is rapidly scaling up in central nervous systems (CNS), gastroenterology, gynaecology, and cardio-diabetology, with a nationwide footprint. This investment in La Renon aligns with FLF’s philosophy of investing in ‘best of breed’ market-leading, late-stage private companies.
Strategic Investment and Growth Potential
Commenting on the investment, Ritesh Chandra, Managing Partner at Avendus Future Leaders Fund, said, “This transaction marks our first deal in the healthcare and lifesciences space. La Renon, under the leadership of Mr. Pankaj Singh, has demonstrated consistent high growth over the last decade, securing strong positions in multiple chronic therapy segments while creating several category-leading brands. We believe La Renon is well poised to continue its growth momentum in the coming years.”
Registered as a Category-II Alternative Investment Fund (AIF) with SEBI, FLF recently announced the first close of its Fund III with a raise of ~INR 850 crores.
La Renon's Financial Performance and Market Standing
In April last year, homegrown private equity firm ChrysCapital invested approximately INR 600 crore (~$70 million) in La Renon Healthcare, valuing the company at $800 million. ChrysCapital acquired about an 8% stake from the promoter family in a secondary transaction.
Also Read: ChrysCap acquires small stake in generics company La Renon for Rs 600 crore
As of April 2023, La Renon’s ownership structure includes its promoter Pankaj Singh and family holding approximately 80%, while Peak XV Partners (formerly Sequoia Capital) owns 14% and domestic venture capital firm A91 Partners holds 6%.
In FY24, La Renon reported revenue of INR 1,400 crore and an EBITDA of INR 300 crore, highlighting its strong financial performance and continued growth trajectory.
Avendus Group is a financial services firm with a presence in Investment Banking, Institutional Equities, Wealth Management, Credit Solutions, and Asset Management. Established in 1999 in Mumbai, India, Avendus operates across 10 cities in India, the US, and Singapore. The firm partners with the Indian entrepreneurial ecosystem to provide differentiated solutions that help clients achieve their strategic aspirations.
The Asset Management business focuses on delivering consistent, sustainable, and strong long-term risk-adjusted returns, prioritizing capital appreciation while maintaining capital preservation. It achieves this through four distinct, performance-driven product offerings: private equity, private credit, long-only, and long-short strategies. Each investment strategy has an independent team, allowing investors to choose high-growth areas aligned with their objectives.
