Boston-based early stage investment firm Romulus Capital has closed its maiden India deal by backing Delhi-based Vyome Biosciences, a biopharma firm which makes pharmaceutical and consumer care products for skin conditions.
The investment by venture capital firm, which was founded by Krishna Gupta along with Neil Chheda while still studying at Massachusetts Institute of Technology (MIT), comes at a time when the firm is looking at more deals in India.
Romulus Capital has closed its third fund, at $75 million taking the total asset under management to $150 million. Investors in Romulus include ultra wealthy families as well as academics and one of India’s oldest business families, the Dalmias. While the fund is not officially linked to any institution, it has links to both Harvard and MIT.
Around a third of the portfolio companies of Romulus Capital have started on the two campuses, including the latest investment. Romulus has invested $2 million as part of the larger series-C round of Delhi-based Vyome. The startup’s founders include Dr Shiladitya Sengupta, an Assistant Professor of medicine at Harvard Medical School besides CEO N Venkat.
“We are entering clinical studies and its a major milestone, as we have got FDA approval human trials in next two months,” said Sengupta, a serial entrepreneur who has also cofounded Invictus Oncology, Cerulean Pharmaceuticals and Mitra Biotech. Capital from the new round will help Vyome finish phase two of drug development, after which the startup could be valued between $300 and $500 million, according to Sengupta.
He expects that the drug, a new product for treatment of drug-resistant acne, will get approved four years from now. Vyome has earlier raised around $11 million from investors like Kalaari Capital, Sabre partners, Aarin Capital and Navam Capital.
Romulus expects to make 4-5 investments in startups like Vyome over the next two years, especially in seed and series-A rounds. “We have been looking at India for couple of years, but there was a ridiculous inflation in valuation,” said 29-year-old Gupta.
Source: Economic Times
