IXP launches Rs 200 Cr fund to support early-stage biotech startups
The fund aims to build a portfolio of 20-25 companies that address gaps in services and products across pharmaceuticals, biotechnology, medical technology, speciality chemicals, agrotechnology, and nutraceuticals.
IXP, a life sciences-focused venture capital (VC) firm backed by JV Ventures, launched its first fund, IXP Lifesciences Catalyst Fund, to invest in early-stage biotech startups. It has a corpus of Rs 200 crore, with an additional Rs 100 crore greenshoe option to support companies from pre-seed to Series A stages.
The fund aims to build a portfolio of 20-25 companies that address gaps in services and products across pharmaceuticals, biotechnology, medical technology, speciality chemicals, agrotechnology, and nutraceuticals.
The Hyderabad-based firm’s approach focuses on providing startups with capital, industry expertise, scientific guidance, and operational support to startups.
IXP established the fund after conducting a pan-India survey to understand the challenges biotech startups face. “The sector requires investors with scientific expertise and industry knowledge. We have onboarded industry veterans as council members and advisors to support our portfolio companies,” said Ketki Tulpule, Chief Investment Officer at IXP.
Jasmeet Chhabra, Partner at IXP and Co-founder of JV Ventures, said, “Early-stage companies need access to laboratories, networks, and R&D services, which we facilitate through PoweRx, the life sciences vertical of JV Ventures."
India's biotechnology segment
India’s biotechnology sector has witnessed significant growth over the past decade, driven by advancements in pharmaceuticals, medical technology, agriculture, and industrial biotechnology. It has increasingly attracted VC investments, with government and private players playing a key role in funding early-stage biotech startups.
The Biotechnology Industry Research Assistance Council (BIRAC), under the Department of Biotechnology (DBT), has been a major facilitator of biotech funding in India.
Through programmes, including the Biotechnology Ignition Grant (BIG), Small Business Innovation Research Initiative (SBIRI), and BioNEST, BIRAC has supported early-stage biotech startups from ideation to commercialisation. These initiatives aim to bridge the funding gap for startups working on drug development, diagnostics, medical devices, and industrial biotech solutions.
In fact, several private equity and VC firms, including Eight Roads Ventures, Peak XV, and Accel, have selectively invested in biotech companies, particularly in biosimilars, novel drug research, and diagnostics.
The Kotak Life Sciences Fund and Encube Ethicals' Biotech Fund have also emerged as dedicated funds supporting biotech innovation, focusing on drug discovery, dermatology, and pharmaceutical R&D.
The increasing demand for affordable healthcare solutions, advancements in genetic research, and the expansion of biosimilars and biopharmaceuticals have contributed to heightened investor interest.
India’s biotech ecosystem has over 5,000 startups currently operating in the sector.
In the Asia-Pacific region, biotechnology startups focusing on food, agriculture, bioenergy, and biomaterials have attracted nearly $3.5 billion in investments over the past three years, marking a 140% increase compared to the previous three years.
Edited by Suman Singh