New Delhi, Aug. 11 -- Biodeal Pharmaceuticals Ltd, the contract development and manufacturing organisation (CDMO) that last month provided an exit to a private credit fund, has secured growth capital as it eyes further expansion.

Founded more than two decades ago, Biodeal specialises in formulation development and manufacturing across multiple therapeutic segments including nasal sprays and specialty formulations.

The specialty drugmaker has raised Rs 385 crore in equity investment from RMB Capitalworks, a joint venture between the Johannesburg-headquartered Rand Merchant Bank and a sub-Saharan Africa-focussed private equity firm Capitalworks Group, Anurag Kumar, founder and managing director of Biodeal Pharmaceuticals Ltd told VCCircle.

The exact breakdown of the capital raised was not disclosed.

Kumar said that a portion of the proceeds was used to provide an exit to Piramal Alternatives which invested in the company through one of its performing credit funds.

The fresh investment comes after Piramal Alternatives, the fund management arm of the Piramal Group, exited its investment in the drugmaker, made through its private credit fund more than two years ago. In April 2024, Piramal Alternatives invested Rs 110 crore ($13.2 million then) in the Noida-based company through its Piramal Structured Credit Opportunities Fund. Biodeal plans to use the rest of the proceeds to strengthen its position across Asian markets while accelerating growth across the Commonwealth of Independent States (CIS), Latin America, Africa and Europe. "The rest of the proceeds are for working capital, R&D and progress of the company," Kumar said.

Biodeal's business

The company operates WHO-GMP and PIC/S-certified manufacturing facilities, including one in Nalagarh, Himachal Pradesh, and serves more than 1,000 pharmaceutical partners across over 80 countries.

The company has long-term contracts with major Indian pharmaceutical companies such as Cipla, Mankind, Torrent Pharmaceuticals and Intas Pharmaceuticals, Kumar said.

He said that around 75-76% of the topline was derived from the domestic market, while 20-21% of the revenue came from exports. Half of the export revenue was from the company's own branded products and the rest came via clients' products. It also made around 2% of topline from loan licensing, under which one company's approved manufacturing facility is loaned out to another company that does not own a factory. Within the domestic sales, around 5% came from the company's own brands, and the rest was from manufacturing for its clients.

For the fiscal year ended 2026, Biodeal's revenue jumped over 60% year-on-year to Rs 330 crore, with a net profit of Rs 30 crore, VCCircle has learnt. Between FY2021-26, the company's topline grew at a compound annual growth rate (CAGR) of 43% supported by growth in the core nasal spray segment, new molecule launches, higher volumes from existing customers, and increasing export contribution. In FY26, 40% of the revenue was made from the company's nasal spray franchise.

Future plans

Kumar expects Biodeal to "happily" surpass Rs 500 crore in revenue this year. He said new product registrations in different countries to support sales, along with new nasal spray developments and new tablet and capsule portfolio launches, are expected to drive growth. On product development, he said, "If 10 developments are ongoing, six are in nasal sprays and four will be in other different areas." Biodeal also intends to work with herbal products makers that use nanotechnology such as nano curcumin (found in turmeric), and other innovations in male and female wellness. "Our R&D is working on that and we will come up with packaging that will make easier for everyone to handle their daily doses of any of the supplements that we are planning to promote."

Published by HT Digital Content Services with permission from VC Circle.