Fidelity-backed global investment firm Eight Roads Ventures announced its first India-dedicated USD 250 million funds for healthcare and life sciences on May 17, 2022. The new fund is the largest pool of capital available for the sector in the country.
Purpose of the new fund by Eight Roads Ventures
With the new fund, the firm hopes to exploit a boom in the healthcare sector. It is one of the core investment themes for Eight Roads Ventures.
The healthcare and life sciences-dedicated fund will back 15 to 20 companies in the space, ranging from smaller investments to cheque sizes of up to USD 40 million. Meanwhile, it will continue to focus on early- to growth-stage investments in life sciences, healthcare services, consumer health and digital health.
Moreover, Eight Roads Ventures’ new fund will continue to follow its two-pronged strategy for investment opportunities in companies. Initially, it is the win-from-behind strategy that involves investment in segments established in healthcare focused on pharmaceuticals and healthcare services. The second strategy aims to invest in companies and simultaneously build leaders in segments that are still nascent.
Earlier, the global investment firm announced a technology-based fund for China in March 2022. The fund was a part of its strategy to create sector-specific funds according to geographies.
What the officials have to say
“Today is our day one, as we deepen our commitment to the healthcare sector in India. Eight Roads have had the privilege of partnering with some of the best healthcare entrepreneurs in the country to build category-defining businesses,” said Dr Prem Pavoor, Senior Partner, Head of India and Healthcare Investments at Eight Roads Ventures.
“We are sub-segment agnostic, stage agnostic and investment size agnostic. We are happy to make small investments and even growth stage ones that will go up to USD 40 million. Healthcare has always been a key focus for us at Eight Roads globally. About 40-45% of all of our investment have been in the healthcare sector, and the balance being in tech, consumer, fintech etc.,” he said.
Pavoor further added, “Our aspiration is to continue backing such bold founders as India leapfrogs many other markets in delivering high-quality healthcare infrastructure, products and services. We are grateful to our founders, partners and the Fidelity ecosystem for providing long-term and patient growth capital for our companies.”
In addition, Daniel Auerbach, Senior Managing Partner and Head of Global Ventures at Eight Roads Ventures, said, “Eight Roads has backed innovative businesses in India since 2007. The launch of this healthcare fund reflects our confidence in the evolution of the Indian market and our commitment to helping ambitious founders scale.”
About Eight Roads Ventures
Eight Roads Ventures began its operations in India in 2007. Since its inception in the country, the firm has had USD 1.6 billion worth of Assets Under Management (AUM). Besides, the Fidelity-backed firm has a portfolio of nearly 60 companies and invests in the broad sectors of healthcare and technology. Its portfolio includes giant companies such as Pharmeasy parent API Holdings, Nicotex brand owner Cipla Health, plant-based nutrition brand OZiva, employee healthcare platform eKincare, and dental clear aligner brand Toothsi, among others.
The Eight Roads Ventures network manages more than USD 8 billion of capital across China, India, Japan, Europe, and the US.
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