Private equity firm TA Associates Monday said it has made a strategic growth investment in scientific informatics services provider, Zifo RnD Solutions. A person familiar with the transaction said that the deal value is pegged at $250 million.
Founded in 2008, Chennai-headquartered Zifo provides research and development (R&D) and manufacturing informatics solutions to the pharma, biotech and medical devices sectors. It helps companies digitalize their operations to boost efficiency and expedite delivery.
The company’s customers are spread across 20 countries and has offices in Canada, China, France, Germany, Japan, Singapore, Switzerland, the UK and the US.
Zifo's net sales increased to Rs 332.64 crore in fiscal 2020-21 from Rs 201.98 crore in the previous financial year, according to VCCEdge, the data and intelligence platform of VCCircle. Its net profit more than doubled to Rs 101.5 crore during the period from Rs 44.5 crore.
“As the push for the digitization of research and clinical development continues, particularly in the life sciences space, we believe Zifo is well-positioned for further growth," said Dhiraj Poddar, Head of TA Associates Advisory Pvt. Ltd., and a Managing Director at TA.
TA Associates has raised $47.5 billion in capital since its commencement in 1968. The private equity firm is focused on segments within five industries - technology, healthcare, financial services, consumer, and business services. In India, it has backed companies such as BillDesk, Dr Lal PathLabs, TCNS Clothing (W) and Disha Microfinance.
Last month, TA Associates hired Vishal Gupta from Softbank Vision Fund as a director in its Mumbai office. VCCircle first reported about Gupta's appointment and the stepping down of Naresh Patwari, a partner at TA Associates. Patwari moved on to float his own investment firm.