Canbank VC invests $3.7M in pre-clinical research firm Bioneeds

Canbank Venture Capital Fund Ltd, a subsidiary of state-run Canara Bank Ltd, has invested Rs 25 crore (about $3.7 million) in Bangalore-based pre-clinical research firm Bioneeds India Pvt Ltd for a minority stake, according to a statement.

The investment is being routed through Canbank Venture's Emerging India Growth Fund, which was launched in June 2010 with a corpus of Rs 500 crore.

Bioneeds would use the funds to expand its facility by 1.2 lakh sq ft to 2.3 lakh sq ft and buy equipment. The expanded facility would consist of biopharmaceutical discovery labs (molecular biology and cell culture).

This expansion will help Bioneeds offer a full range of discovery, development and regulatory services to pharma, biotech, medical device and agrochemical companies. The funds will also help the company deepen ties with its 250-odd customers, managing director SN Vinaya Babu said.

The company is aiming to clock turnover of Rs 100 crore over the next three years.

Canbank Venture, set up in 1989, was formed to invest in small and medium enterprises in various sectors. It has so far set up five funds with a total corpus of Rs 620 crore. Last year, it had said that it was targeting its sixth venture capital fund with a target corpus of Rs 500 crore.

In June this year, it invested Rs 11 crore (around $1.7 million) in Surat-based security services firm Shiva Industrial Security Agency Pvt Ltd for a minority stake.

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