New Delhi, July 31 -- Mumbai-based pharmaceutical manufacturer Prime Pharmaceuticals Pvt. Ltd has raised capital from external investors for the first time, through convertible instruments, to fund its next phase of growth, VCCircle has learned.
Founded in 1968, Prime Pharma manufactures generic medicines, specialty medicines and over-the-counter (OTC) healthcare products. It exports finished dosage formulations to more than 50 countries including Europe, Latin America, Africa and the Middle East and North Africa (MENA) region.
The pharma manufacturer has now raised Rs 140 crore (around $14.7 million), which will go towards strengthening its research and development capabilities, expanding its consumer healthcare business and pursuing growth opportunities in developed markets.
The investor's name has not been made public but people aware of the development said that the backer is Delhi-headquartered DMI Finance Pvt Ltd.
The funding has been structured as a convertible instrument, a financing mechanism that initially functions as debt but can be converted into equity at a later date upon the occurrence of predefined events. Such instruments are often used by companies seeking growth capital while deferring immediate equity dilution, allowing founders greater flexibility as the business scales up.
"We are now entering our growth phase and convertible instrument are best suited for us. It helps us balance our growth capital need and supports deferred equity conversion," said Manish Vora, global managing director and chief executive officer of Prime Pharma.
"The primary use of the funds will be to support growth, including R&D, our B2C business, and other growth opportunities that arise, particularly in developed markets," he added.
Centrum Capital acted as the sole advisor to the transaction.
Centrum and Prime Pharma declined to disclose the name of the investor.
"This investment provides Prime Pharma a solid growth platform while also taking care of cashflow flexibility and equity dilution. The company is at an inflection stage and this investment will give a strong impetus to its growth journey across new molecules and geographies," said Rajendra Naik, managing director, investment banking, Centrum Capital Ltd.
The company operates manufacturing facilities compliant with international standards including WHO-GMP, EU-GMP and USFDA, and expanded into research and development services in 2016. It has registered more than 400 product dossiers globally.
Vora said the company's customer retention remains a key strength. "Our retention ratio for customers is 99.5%. Once customers come in, they never leave us."
The company's revenue more than doubled to Rs 780 crore in the financial year through March 2025 (FY25) from Rs 339 crore in the previous financial year, according to PrivateCircle. Ebitda stood at Rs 18.3 crore, while net profit came in at Rs 8.8 crore.
Looking ahead, Vora said that the company expects to maintain strong growth. "Over the longer term, we are targeting a CAGR of about 35% to 40%."
Published by HT Digital Content Services with permission from VC Circle.