Stelis Biopharma (Stelis) has concluded its Series B and Series C fund raise for a cumulative amount of $195 million.
Post money valuation for Stelis will be pegged at close to $350 million, underpinning the significant growth potential of the business, the company said in a release.
Stelis as part of its Series B issue will raise $70 million from existing investors at the current pre-money valuation of $155 million through partly paid shares.
Family office of Promoters to lead the funding round with $56 million commitment of which $15 million will be invested immediately, Strides to subscribe the balance $14 million, the company added.
Series C funding round
The company has raised an additional $125 million through Series C funding round including a primary infusion of $85 million in the company and a secondary placement of $40 million for GMS Holdings, its 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 $350 million, 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.
The startup also wants to accelerate the vaccine block infrastructure with ability to cater to multiple vaccine types including viral vector, protein subunit, RNA and DNA.
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 $116 million. Strides will demerge and list its Biopharma business under Stelis on a standalone basis enabling significant value unlocking for Strides shareholders.
Strides Group Founder Arun Kumar said, “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.”
Stelis is now getting into its growth phase and is witnessing strong customer traction for its CDMO offerings including Vaccines, the company added.