**Hyderabad CRDMO Secures $100 Million Investment, Eyes IPO**
A Hyderabad-based contract research, development, and manufacturing organization (CRDMO) has successfully raised $100 million from Quadria Capital as of January 2025, bringing the company’s valuation to approximately $1.4 billion (₹12,259 crore). Additionally, the Avendus Future Leaders Fund and SBI Life Insurance contributed ₹300 crore through a secondary stake purchase. The company’s CEO, Manni Kantipudi, indicated that an initial public offering (IPO) is likely on the horizon, but they are keen to choose the right timing for it. “We aspire to be one of the largest CRDMOs in India, and we’ve made significant progress so far,” Kantipudi stated. “We’re waiting for the right timing to trigger that IPO.”
In fiscal year 2024 (FY24), Aragen reported consolidated revenue of ₹1,675 crore. Although figures for FY25 are not publicly disclosed, Kantipudi mentioned that the company experienced a year-on-year growth of about 12% last fiscal year, projecting revenue to reach around ₹1,850 crore. Comparatively, recently listed competitors such as Anthem Biosciences Ltd and Sai Life Sciences Ltd reported revenues of ₹1,845 crore and ₹1,695 crore, respectively, while Syngene International, the CRDMO division of Biocon Ltd, reported ₹3,642 crore in revenue.
The CRDMO sector has recently attracted significant investor interest, with new entrants being listed at substantial premiums and existing companies trading at high valuations. For instance, Anthem Biosciences debuted on the National Stock Exchange last month at a 27% premium over its IPO price of ₹570, with an issue size of ₹3,395.79 crore that was subscribed 67.42 times. Currently, the market capitalization of this CRDMO stands at approximately ₹45,936 crore. Sai Life Sciences, which went public in December 2024, has a market cap nearing ₹17,032 crore, while other firms like Piramal Pharma and Syngene International are valued at ₹24,603 crore and ₹25,305 crore, respectively.
As the global pharmaceutical supply chain shifts away from China, Indian CRDMOs are well-positioned to capture a larger market share. A report by BCG estimates that the Indian CRDMO industry is currently valued at $3-3.5 billion, representing only 2-3% of the global market worth $145 billion. The industry is projected to grow to $25 billion by 2035.
Suresh Subramanian, national life sciences leader at EY Parthenon India, noted, “There is a lot of work coming in, whether the ‘China plus one’ strategy materializes or not—because it’s such a growing segment.” He emphasized that Indian companies are focused on benchmarking themselves against Chinese counterparts in terms of cost and agility. Kantipudi highlighted India’s advantages over China, including lower labor costs and a proficient English-speaking workforce.
**FAQ**
**What is the significance of the recent investment for the Hyderabad CRDMO?**
The $100 million investment enhances the company’s valuation and positions it for potential growth, including plans for an IPO, as it aims to become a leading player in the Indian CRDMO market.