Stelis Biopharma (Stelis), a vertically integrated biopharmaceutical company, announced that it has successfully concluded its Series B and Series C fund raise for a cumulative amount of US$ 195 million.
Post money valuation for Stelis will be pegged at ~US$ 350m, underpinning the significant growth potential of the business, the release said. With the current capital raise, Stelis is now well positioned to pursue its growth initiatives and scale its business model to deliver promising returns in the coming years.
Series B funding round
- Stelis as part of its Series B issue will raise US$ 70m from existing investors at the current pre-money valuation of US$ 155m through partly paid shares
- Family office of Promoters to lead the funding round with US$ 56m commitment of which US$ 15m will be invested immediately, Strides to subscribe the balance US$ 14m
Series C funding round
- The company has raised an additional US$ 125m through Series C funding round including a primary infusion of US$ 85m in the company and a secondary placement of US$ 40m for GMS Holdings, our existing shareholder
- Funding round led by TPG Growth followed by other long-term investors namely, Route One, Think Investments and the Mankekar Family
- Post money valuation for the business pegged at ~US$ 350m, a significant value accretion for existing shareholders
Utilization of proceeds under the capital raise
- Completion of last mile capex for the CDMO business including setting up of 6KL mammalian block, ramp up of process development lab and other technical capabilities
- Accelerating the vaccine block infrastructure with ability to cater to multiple vaccine types including viral vector, protein subunit, RNA and DNA
- Debt servicing and other general corporate purposes
Value unlocking for Strides Shareholders
- Post completion on Series C fund raise, Strides to hold 33% (Pre-ESOP) in Stelis with its investment valued at US$ 116m
- Strides will demerge and list its Biopharma business under Stelis on a standalone basis enabling significant value unlocking for Strides shareholders
- The transaction is subject to approval from shareholders, meeting customary closing conditions and is expected to achieve closure in over 12 months
Commenting on the development, Arun Kumar, Founder of Strides Group, remarked : “We are delighted with current round of capital raise at Stelis led by TPG Growth along with Route One, Think Investments and the Mankekar family. I am extremely thankful to Matt Hobart and Ankur Thadani from TPG Growth, Bill Duhamel and Justin Maletsky from Route One, Shashin Shah from Think Investments, Shivanand and Kedar from the Mankekar family for their trust in our leadership. We are pleased that GMS will continue to be our shareholder post the secondary placement. Stelis is now getting into its growth phase and is witnessing strong customer traction for its CDMO offerings including Vaccines. We are confident to build a sustainable business & deliver significant value for our shareholders.”
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