Fidelity Growth Partners India, the private equity arm of global asset management giant Fidelity, has announced that it has invested in Bangalore-based privately held medical diagnostics company XCyton Diagnostics Pvt Ltd.
Although the company did not disclose the deal value, VCCircle had first reported on Nov 28 that the deal involves investment of up to Rs 20 crore.
XCyton is a product development company, founded in 1993 by B.V. Ravi Kumar, a physician-scientist-turned-technocrat. Currently, it offers diagnostic services for sepsis, central nervous system infections like meningitis and acute encephalitic syndrome and trauma or surgery-induced eye infections.
The company’s syndrome evaluation system (SES) platform allows for simultaneous identification of up to 30 pathogens in a six-hour test cycle for critical infections, where the time span from diagnosis to severe disability and often death, is less than 72 hours.
“XCyton’s technology is a paradigm shift from all conventionally used tests including blood cultures that typically detect a single pathogen and take more than 48-72 hours to deliver results. Moreover, these tests have inadequate sensitivity. XCyton’s six-hour turnaround, coupled with simultaneous pathogen detection, serves an unmet need, not only in India but also globally,” said Ravi Kumar.
Birthstone Capital was the operating partner and sole financial advisor to XCyton for the transaction. Incidentally, Birthstone, a private equity firm that specialises in operational style of investing, is also an investor in the firm.
Kiran Mazumdar Shaw, chairman and managing director of Biocon Ltd (the country’s leading biotechnology enterprise), is also an investor in XCyton in her personal capacity.
In 2007, XCyton received funding from Amvar Ventures Pvt Ltd, a sister concern of Nadathur Holdings – an investment firm established by N.S. Raghavan, founder and former managing director of Indian IT giant Infosys.
“XCyton’s service offerings are well positioned to reduce the high mortality rates associated with several critical illnesses,” said Raj Dugar, senior managing director at FIL Capital Advisors (India).
Fidelity Growth Partners India seeks to invest anywhere between $10 million and $50 million across a broad range of sectors in India. The firm has also invested in Mind Shaper Tech and Transpole Logistics, among others.