Avendus FLF III Leads INR 300 Cr Bet on Aragen Life Sciences

The Avendus Future Leaders Fund (FLF) III and SBI Life Insurance have co-led a ₹300 crore purchase of a secondary stake from the promoter group.

Aragen Life Sciences, a leading Contract Research and Development Manufacturing Organization (CRDMO) in India, has received new institutional investment.

The Avendus Future Leaders Fund (FLF) III and SBI Life Insurance have co-led a ₹300 crore purchase of a secondary stake from the promoter group.

This deal grants the two investors over 2.5% ownership in the company and enhances Aragen's institutional shareholder base.

Founded in 2001 as GVK Biosciences, Aragen has grown into one of India’s few fully integrated contract research, development, and manufacturing organizations (CRDMOs).

The Hyderabad-headquartered company partners with more than 400 global clients, including 15 of the top 20 pharmaceutical companies, offering services that span early-stage drug discovery, preclinical development, and large-scale commercial manufacturing for both small molecules and biologics.

About 50% of Aragen’s revenue comes from drug discovery research, with the rest generated from early development and manufacturing. The U.S. remains its largest market, contributing nearly 65% of revenues, followed by Europe at around 25%.

Capacity Expansion in High-Growth Segments

Aragen has been on a steady capacity expansion path, targeting high-value and specialised manufacturing segments.

It is preparing to open a high-potency manufacturing unit in Hyderabad in October 2025, focusing on antibody-drug conjugates (ADCs) for oncology applications.

These additions strengthen Aragen’s position in complex biologics manufacturing and align with the increasing trend of global pharmaceutical companies outsourcing advanced R&D and manufacturing to India.

Strong Track Record of Investor Backing

This latest investment follows Quadria Capital’s $100 million primary infusion in January 2025, which valued Aragen at around $1.4 billion and funded expansion in oligonucleotides, peptides, ADCs, biologics, and AI-driven drug discovery tools.

Earlier, the company had raised capital from Sequoia Capital, ChrysCapital, and Goldman Sachs, with each round fueling scale and capability upgrades.

Although the current deal is a secondary sale and will not bring fresh capital directly into Aragen, it signals continued market confidence.

Stay tuned for more such updates on Digital Health News