Micro Life Sciences Pvt. Ltd., a Warburg Pincus-backed Indian medtech powerhouse, is in the final stages of securing a fresh round of funding from two global sovereign giants—Singapore’s Temasek Holdings and the UAE’s Abu Dhabi Investment Authority (ADIA). This high-profile funding round, expected to raise between $250 million and $300 million, comes as the company gears up for a potential initial public offering (IPO) in the next 12 to 18 months.

A Multi-Billion Dollar Valuation and a High-Stakes Play

Insiders familiar with the deal reveal that Micro Life Sciences is seeking a lofty valuation of ₹65,000 crore (approximately $7.8 billion), pricing the company at over 40 times its FY25 estimated EBITDA of ₹1,300 crore. This aggressive valuation reflects Micro Life’s rapid financial ascent and the bullish sentiment surrounding India’s burgeoning medtech sector. Warburg Pincus, which invested $210 million in Micro Life Sciences three years ago at a valuation of $1.8 billion, now stands to quadruple its investment—underscoring the strategic foresight of private equity in the Indian healthcare domain.

Sovereign Funds Leading the Charge

Given the high valuation and capital requirement, only sovereign wealth funds or state-backed entities with lower cost-of-capital profiles are in a viable position to participate in this round. Both Temasek and ADIA, known for their long-term bets in emerging markets, are reportedly conducting individual evaluations and are expected to place bids in the coming month.

Roots in Gujarat, Global Reach

Founded in 2006 by the Bilakhia family of Vapi, Gujarat, Micro Life Sciences has grown from a domestic entity into a global medtech conglomerate. It operates through several subsidiaries, most notably Meril Life Sciences, which manufactures critical cardiac and orthopaedic medical devices—including coronary stents, balloon catheters, heart valves, knee and hip implants, and surgical robots. The Bilakhia family, with patriarch Gafurbhai Bilakhia and his three sons—Yunus, Jakir, and Anjum—at the helm, has diversified into healthcare, investments, and real estate, though medtech remains their crown jewel.

Financial Highlights and Market Momentum

Micro Life Sciences reported a robust revenue jump to ₹3,495 crore in FY24, up from ₹2,359 crore in FY23, according to a Care Ratings report. However, the company saw a dip in profit after tax to ₹333 crore in FY24, down from ₹505 crore the previous year. The FY23 profit was buoyed by a one-time ₹298 crore fair value gain related to derecognition of a JV investment. The company’s gross margins have significantly improved—rising from 64.64% in FY23 to 72.80% in FY24—thanks to a better product mix and improved sales realization in key segments. Notably, cardiac and orthopaedic implants contributed around 80% of total revenue in FY24, while diagnostics and surgical devices accounted for the remaining 20%.

Expanding Footprint: 25+ Countries, 100+ Markets

Micro Life Sciences is no longer just an Indian success story. It has operational arms in over 25 countries, including major markets such as the US, Germany, China, and the UK, and sells its products in more than 100 countries. Export sales are reportedly more lucrative than domestic ones, further enhancing the company’s global competitiveness.

Medtech Investment Boom in India

Micro Life’s upcoming IPO and current funding negotiations highlight a broader trend of heightened investor activity in India’s medtech space. 2024 saw marquee deals including KKR’s acquisition of Healthium, Warburg Pincus’ $300 million investment in Appaswamy Associates, and Morgan Stanley PE Asia’s ₹1,000 crore infusion into Maiva Pharma. With robust fundamentals, global ambitions, and backing from some of the most influential investors in the world, Micro Life Sciences stands at the cusp of a transformative phase—poised to redefine the medtech landscape both in India and abroad.