Strides Pharma Sells Majority Stake in Pivot Path to Accelerate AI-Driven Life Sciences Growth
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The transaction values Pivot Path at a post-money valuation of INR 230 Cr.
Bangalore-based Strides Pharma has divested its majority stake in Bangalore-based Pivot Path for INR Cr 100 crore while retaining a minority holding, as the life sciences technology business secures fresh capital to expand its AI-powered compliance, digital transformation, and drug safety solutions.
Badree Komandur, MD & Group CEO of Strides, said, "As the business enters its next phase, we believe this is the right time to bring in a strategic investment partner with the expertise and capital to accelerate its growth. This transaction unlocks value for Strides, provides Pivot Path with the resources to scale independently, and allows Strides to retain meaningful participation in its future success."
Pivot Path was incubated within Arco Lab, the Global Capability Centre (GCC) of Strides Pharma, where it developed expertise in life sciences consulting, digital transformation, quality and regulatory compliance, pharmacovigilance, and technology-enabled operational services.
The board of Strides Pharma approved the strategic investment by a consortium led by Ascent Capital, along with co-investor Vintage Classic.
As part of the transaction, Strides Pharma has sold a majority stake in Pivot Path for INR 100 Cr, while Ascent Capital will additionally invest INR 50 Cr into the company as primary capital to support its next phase of expansion.
Strides Pharma will receive INR 75 Cr upon the initial closing of the transaction, while the remaining INR 25 Cr will be paid on the first anniversary of the closing.
Following completion of the deal, Strides Pharma will retain a 19.95% equity stake in Pivot Path. The investor consortium will hold 65.05%, while the remaining 15% has been reserved as an employee stock ownership plan (ESOP) pool.
The transaction values Pivot Path at a post-money valuation of INR 230 Cr.
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