Tata Capital Healthcare Fund invests $20M in medical devices manufacturer Harsoria
Harsoria said it will use the funding to expand its manufacturing capabilities, improve research and development (R&D) efforts, and drive business development.
Tata Capital Healthcare Fund, the healthcare and life sciences-focused private equity arm of financial services company Tata Capital, has invested $20 million in Harsoria Healthcare, a medical devices manufacturer.
The round also saw participation from investors like Utpal Sheth, Ashish Kacholia, and the LNB Group.
However, the firms did not disclose the details of the acquired stake.
Harsoria will use the fresh capital to expand its manufacturing capabilities, improve research and development (R&D) efforts, and drive business development, the company said in a statement.
Harsoria currently operates two factories—one in Gurugram and another in Baddi, Himachal Pradesh. It employs over 1,500 people across its two manufacturing facilities, and exports to over 60 countries, with exports accounting for 90% of its revenue.
“This reaffirms the strength of our business model that has evolved with contributions from all stakeholders in the organisation–our employees, customers, suppliers, and investors,” said Neeraj Gupta, Managing Director, Harsoria Healthcare.
“We look forward with great excitement to accelerating our growth trajectory while remaining committed to developing high-quality, innovative, and cost-effective medical devices for global and Indian healthcare providers,” he added.
Post this funding, Tata Capital Healthcare Fund has deployed about 90% of its corpus. Some of its investments include Linux Labs, Atulya Healthcare, Deeptek Inc, Anderson Diagnostic Services, Sakar Healthcare, dialysis chain Apex Kidney Care, and Mumbai Oncocare Centre.
Founded in 2002, Harsoria is an integrated manufacturer of single-use medical devices. Its product portfolio includes vascular access devices such as cannulas and catheters, infusion systems like IV sets and infusion pumps, and hemodialysis products, including bloodline sets and AV fistula needles.
It also manufactures respiratory care devices such as oxygen and nebulizer masks, along with stoppers and stopcocks for controlling fluid flow in medical systems.
Harsoria reported revenue of Rs 184 crore in fiscal 2023, up from Rs 153 crore in the previous year. However, despite the rise in revenue, the company’s profit experienced a decline, dropping from Rs 16 crore in 2022 to Rs 14 crore in fiscal 2023, according to data platform Tracxn.
According to Tata Capital Healthcare Fund, India's medical devices industry is the fourth largest in Asia and ranks among the top 20 globally. It is expected to grow at a compound annual growth rate (CAGR) of 13% over the next five years, reaching an estimated market value of $22 billion.
Candle Partners was the exclusive financial advisor to Harsoria Healthcare and its shareholders for the transaction.
Edited by Megha Reddy