LeapFrog Investments has bought a majority stake in Mumbai-based medical products company Ascent Meditech Ltd, the emerging markets impact investment firm said in a statement.
The investment will likely help Ascent tap into the $100 billion Indian healthcare market, which is projected to grow at an average annualised pace of 12-15%, LeapFrog said.
It did not disclose financial details of the transaction. In the past, the firm has made investments in the range of $25 million to $30 million.
Ascent Meditech makes and sells consumer healthcare products under the brand Flamingo. It has a focus on orthopedics, pain and wound care. Its products are sold to seven million customers annually via 150,000 retail points, the statement said.
“The Ascent Meditech team has achieved outstanding growth in the orthopaedic and wound care market, addressing a core need for consumers with high quality products and competitive prices, thus opening up accessibility,” said Felix Olale, partner and global co-lead for health investments at LeapFrog.
For Leapfrog, this is its first control deal in India.
The firm is investing out of its $800 million third fund. It intends to invest one-third of its fund in healthcare.
In the past, it has invested in a number of finance companies in India, including Magma Fincorp Ltd, Mahindra Insurance Brokers Ltd and Shriram Credit Company Ltd.
LeapFrog co-invested with several investors to pick a stake in Fincare Business Services Pvt. Ltd as its flagship firm Disha Microfin Pvt. Ltd. was looking at launching small finance banking operations early last year.
It made a partial exit when Chennai-based non-banking financial company IFMR Capital closed a second round of institutional funding from Eight Roads Ventures in November last year. The fund fully exited IFMR Capital when Standard Chartered Private Equity infused another $50 million .
