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IFC, the private investment arm arm of World Bank, will invest $6.5 million in Ocimum Biosolutions. IFC will pick up an undisclosed minority stake. This is the first round of funding for Ocimum, which plans to use the funds for organic and inorganic growth. Avendus Advisors advised Ocimum in the deal.

The Hyderabad-based company is essentially in a life sciences R&D play with a focus on BioIT, microarrays, and contract research services. Its US operations are focused on custom contract research services in the molecular biology area, while the Indian operations provide BioIT services. The company may go for another round of funding in the next two years. It had revenues of $2.6 million in 2005, and is expecting $5 million by March 2007.

More importantly, Ocimum is on the look-out for more life sciences software and biotech companies in the European market. [Via Red Herring]