Avendus Future Leaders Fund Acquires Minority Stake in La Renon Healthcare

The late-stage focused Avendus Future Leaders Fund (FLF) has made its debut investment by acquiring a minority share in La Renon Healthcare, based in Ahmedabad, for Rs 160 crore from two undisclosed investors. This secondary transaction signifies the inaugural investment from the newly established Future Leaders Fund, although the specifics regarding the valuation of the deal have not been disclosed.

La Renon Healthcare counts Peak XV and A91 among its investors, having received backing from them since 2015 and 2021, respectively. In 2024, the private equity fund ChrysCapital rapidly advanced by investing $70 million in La Renon.

Remarks from Avendus Managing Partner

Ritesh Chandra, Managing Partner at Avendus Future Leaders Fund, stated that this transaction represents their first venture into the healthcare and life sciences sector. Under the guidance of Mr. Pankaj Singh, La Renon has shown impressive growth over the past decade, establishing a robust presence in various chronic therapy segments while developing multiple category-leading brands.

Overview of La Renon Healthcare

Founded in 2007 by Pankaj Singh, La Renon focuses on multiple therapeutic areas, including nephrology, neurology, gastroenterology, cardiology, and diabetes. The company owns over 250 patents in India, the US, the EU, and Canada. Additionally, La Renon operates two manufacturing facilities, two active pharmaceutical ingredient units, and a dedicated research and development (R&D) centre.

Details on the Future Leaders Fund

The FLF represents Avendus’ third initiative within the FLF platform. This Category-II Alternative Investment Fund aims for a total corpus of $350 million (Rs 3,000 crore), which includes a green-shoe option of up to $175 million (Rs 1,500 crore). Announced in May of the previous year, the FLF III fund intends to invest in 10 to 12 companies, each receiving an average cheque size between $25 million and $35 million. The fund targets sectors such as financial services, consumer products, digital and technology, healthcare, and manufacturing.

Previous Investments and Recent Changes at Avendus Capital

Among the portfolio companies from FLF I and FLF II are notable names such as the omnichannel eyewear brand Lenskart, Indian snacks producer Bikaji, and mobile payment platform Juspay, among others.

Recently, Avendus Capital decided to close its hedge fund operations due to low traction in its funds. The firm’s leader, Andrew Holland, is also in the process of transitioning away from the company. The hedge fund previously offered two products, Avendus Absolute Returns and Avendus Enhanced Return within this segment.