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Reliance Digital Health to acquire 2.25% stake in Synchron Inc.

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Capital Market
Last Updated : Dec 16 2022 | 10:04 AM IST

Reliance Digital Health, a subsidiary of Reliance Industries, has signed definitive agreements with Synchron Inc. to acquire 2.25% stake (on a fully diluted basis) in Synchron Inc. as part of its Series C financing round.

Synchron is a clinical-stage endovascular brain computer interface (BCI) company. Since 2012, the company has been developing a BCI platform that avoids the need for open brain surgery by using a minimally-invasive procedure. The Synchron Switch BCI received FDA Breakthrough Device Designation in 2020, and is currently in human clinical trials in the US and Australia.

Synchron is based in Brooklyn, New York with R&D facilities in Melbourne, Australia.

Synchron announced on Thursday (15 December) an oversubscribed $75 million Series C financing round led by ARCH Venture Partners. Gates Frontier, Bezos Expeditions, Reliance Digital Health Limited, Greenoaks, Alumni Ventures, Moore Strategic Ventures, and Project X join ARCH as new additional investors.

Existing investors, including Khosla Ventures, NeuroTechnology Investors, METIS, Forepont Capital Partners, ID8 Investments, Shanda Group and University of Melbourne participated in the round. The Series C funding brings the total amount raised since inception to $145 million.

The funding will accelerate development of Synchron's first platform product (Synchron Switch BCI), and launch a pivotal clinical trial. Ari Nowacek from ARCH Venture Partners will join Synchron's board of directors, and ARCH co-founder and managing director Robert Nelsen will join as board observer.

The Synchron Switch brain computer interface is implanted in the blood vessel on the surface of the motor cortex of the brain via the jugular vein, through a minimally-invasive endovascular procedure. Once implanted, it is designed to detect and wirelessly transmit motor intent out of the brain, restoring a capability for severely paralyzed patients to control personal devices with hands-free point-and-click.

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Mumbai-based Reliance Digital Health (formerly Kanhatech Solutions) is a limited company incorporated in India. The company is engaged in designing, developing, marketing of software programs, application platforms, payment gateways, products, services and technology solutions in healthcare, wellness and allied services, to healthcare centers and medical institutions, within and outside, India.

Shares of Reliance Industries rose 0.92% to Rs 2602.40 on the BSE.

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First Published: Dec 16 2022 | 9:47 AM IST

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