Chennai-based medical technology manufacturer Perfint Healthcare is planning to raise around $20 million (approximately Rs 111 crore) from private equity investors. The company had, in March 2012, raised $6 million (around Rs 33.3 crore) from the existing investors led by Norwest Venture Partners.
S Nandakumar, chief executive officer of Perfint Healthcare, said the money will be utilised to set up a research centre in the US, market its new product Maxio and to obtain regulatory approvals.
“We are also in talks with the investors for a fourth round of funding, which will be around $20 million. We expect the fund-raising to be completed by March 2013,” he said.
The money will be utilised to develop three more new products in the next three years and also to fuel its proposed foray into the regulated markets, Nandakumar said, while declining to disclose the quantum of the stake dilution to the investors.
It may be recalled that the company had rolled out its first product in January 2008, before raising $3.5 million from Accel Partners and IDG Ventures in 2007.
The company, which has been developing products for inteventional oncology, received a second round of funding to the tune of $7.2 million in 2010. The investors include Norwest Venture Partners and the existing investors. Of the total investment, Norwest pumped $3.7 million.
“The investors will be with us for the long-run. Some of them, however, may look at a partial exist via an initial public offer or a strategic sale after 18 months,” Nandakumar said.
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The $5-million Perfint has set a target to achieve revenues of around $13 million by the end of March 2013. The growth drivers, according to Nandakumar, will be the new products and its entry into newer markets.
The company has launched Maxio, an integrated planning, navigation and robotic targeting system for CT-guided tumour ablation. The product was unveiled by Sam Pitroda, chairman, National Innovation Council, and advisor to the Prime Minister on public information infrastructure and innovation.
According to Nandakumar, tumour ablation was an effective alternative to surgery for inoperable tumours. For instance, only around 20 per cent of the liver cancer patients are surgical candidates.
With the new product, the company is now looking at the US, Europe, China, Korea and Japan, apart from catering to the domestic market, he said.