Ahmedabad-based La Renon Healthcare secures Rs 100 Cr funding from Sequoia Capital
Ahmedabad-based pharmaceutical research, marketing and manufacturing company La Renon Healthcare Pvt. Ltd has raised INR 100 crore in Series A funding from Sequoia. The company will use the investment to enhance its Research and Development capabilities and to expand into new categories within the chronic diseases management space.
Founded by Pankaj Singh(Founder & CEO) in 2008, La Renon provides pharmaceutical products and services for various critical illnesses and diseases. It claims to be the first company in Nephrology to foray into the domain with a focus on early stage Chronic Kidney Disease (CKD) patients which is one of the most neglected segments in India. It is estimated that, at least 6 crore individuals in India are suspected to be suffering from some form of Kidney Disease, and of that only 1% (6-7 lakh) are diagnosed or undergo some form of renal therapy. The company has a 500 strong team and currently has 164 products that are distributed through approximately 400 stockists across the country.
Pankaj says,
Chronic diseases are fast becoming a major health risk for a majority of Indians, largely due to factors relating to the changing modern lifestyle. At La Renon, it is our aim to develop and market new and innovative solutions to address these chronic health issues. We view this partnership with Sequoia as an endorsement of the strength and sustainability of our branded formulations business and validation of our differentiated growth strategy across various therapeutic segments.
La Renon claims to serve the highest number of Chronic Kidney Disease (CKD) patients in India today. The company has a strong presence in other chronic segments like Critical Care, Neurological Disorders and Urology as well. The company now plans to enter new segments of chronic diseases such as Gastroenterology and Respiratory.
The Indian healthcare industry, particularly the healthcare delivery segment, has been growing at a rapid pace over the last few years. Pegged at approximately USD 60 billion in 2014, the sector is projected to grow at CAGR of 15% to touch USD 90 billion by 2017. A crucial factor that is playing a key role in the growth of the segment is the gradual shift in patient behaviour, from only addressing acute diseases to looking at managing chronic diseases on a regular basis.
VT Bharadwaj, Managing Director, Sequoia Capital India Advisors believes that health and technology are converging to become ubiquitous in patients' and doctors' lives. Citadel Management Consulting was the exclusive advisor on the transaction.