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Sequoia-backed pharma firm La Renon ropes in A91 Partners as new investor
Photo Credit: 123RF.com

La Renon Healthcare Pvt Ltd has roped in A91 Partners as a new investor, a little over five years after the pharmaceuticals company had received its first external funding from Sequoia Capital.

A91 Partners, a venture capital firm floated by former Sequoia Capital executives, has invested $30 million (Rs 220 crore) in the Ahmedabad-based company.

Pankaj Singh, founder and chief executive of La Renon, told The Economic Times that A91 has invested for a 5-6% stake. Sequoia will continue to hold 12.5% stake in the company, he added.

The latest investment was made at a valuation of $500 million.

La Renon will use the fresh capital to boost its product portfolio and research and development capabilities.

An email sent to La Renon, A91 Partners and Sequoia for more details did not elicit a response immediately.

Founded by Singh in 2008, Le Renon provides pharmaceutical products and services for various critical illnesses and diseases. The company claims it was among the first to foray into the domain of nephrology in the country.

Besides nephrology, it has a presence in other chronic segments like critical care, neurological disorders, urology, gastroenterology and respiratory.

New-age pharma companies like La Renon have been attracting private equity interest and some of them have also managed to rope in new investors as they scale up.

Late last year, another Sequoia-backed pharmaceuticals company Celon Laboratories Pvt. Ltd was acquired by a pan-Africa pharmaceutical platform formed by CDC Group Plc and two other institutions.

Laurus Labs Ltd, which had scaled up through private equity funding and got listed in 2016, agreed to buy the majority stake held by venture capital firms Ventureast and Eight Roads Ventures in Richcore Lifesciences Ltd last year.

Inventia Healthcare Ltd, which dropped its plans to float an initial public offering despite getting regulatory approval, roped in InvAscent as a new investor last year.

A91 Partners

A91 Partners was floated in 2018 by former Sequoia Capital executives VT Bharadwaj, Gautam Mago and Abhay Pandey. The trio had left Sequoia between June 2017 and August 2018. In November last year, Kaushik Anand quit as the India head of CapitalG to join A91 Partners.

Last month, VCCircle reported that the VC firm was gearing up to launch its second India-focussed fund.

A91 Partners has invested in companies such as spices maker Pushp, Aye Finance Pvt. Ltd, beverage brand Paper Boat, and make-up brand Sugar Cosmetics.

In December last year, it doubled down on smart fans maker Atomberg Technology.

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