A M Naik family office invests in medtech firm S3V Vascular Technologies

The Series B funds raised from Naik and other investors would be used to set up a state-of-the-art integrated manufacturing facility for neurovascular devices in Karnataka

After transforming India’s largest construction and engineering firm, Larsen & Toubro, into a conglomerate, A M Naik, now chairman emeritus, has turned into a venture capitalist by investing in a Mysuru-based medical devices firm, S3V Vascular Technologies.

Naik’s family office and other investors are investing Rs 300 crore in the company, which aims to become a unicorn in the next few years and disrupt the Indian neurovascular industry currently dominated by multinationals.

Apart from Naik, veteran investor Madhusudan Kela has also invested in the company. The valuation of the company was not disclosed, nor was the stake picked up by the new investors.

Naik says medical device technology stands on the cusp of advanced medicine and precision engineering, and it is a boon for patients with brain strokes and can make a life-or-death difference.

“My investment is because this technology deserves to be scaled up not just for Indians but for every stroke patient across the world to access affordable health care technology. I also believe that Indian engineering is capable of producing the world’s best,” Naik told Business Standard in an email statement. In an interview on Thursday, Badari Narayan, promoter, director, and chief executive officer of S3V Vascular Technologies, said the company’s products to treat strokes would cost only Rs 75,000 when compared to Rs 5 lakh charged by the multinationals.

The Series B funds raised from Naik and other investors would be used to set up a state-of-the-art integrated manufacturing facility for neurovascular devices.

“There is a huge untapped market in India, as every year over 2,50,000 are reported as stroke patients but only 5,000 get proper treatment. Our company  plans to bring down the cost for patients by manufacturing these devices, which are currently manufactured abroad,” Narayan said.

As of now, acute ischaemic stroke patients are treated by mechanical thrombectomy, an interventional procedure performed in a catheterisation laboratory to physically remove clots lodged in the brain’s vessels.

“We plan to provide timely intervention, particularly within the golden hour, offering a high probability of restoring blood flow and reversing paralysis,” Narayan said.

With well-known names such as Naik and Kela backing the company, Narayan said it would be able to construct a plant that would meet the quality standards of global regulators.

“We plan to launch another major fundraiser in three to four years,” he said.

Apart from Naik, several leading business leaders are investing in startups to promote young companies. The family office of former Tata Group chairman Ratan Tata has made investments in several technology startups in India.

Narayan said that in the post-pandemic era, India has witnessed a surge in stroke cases, especially among young adults.

“We aim to address this critical health care challenge with a focus on the development of advanced neurovascular devices and bringing down the cost of treatment for patients.”

"My investment is because this technology deserves to be scaled up not just for Indians but for every stroke patient across the world to access affordable healthcare technology. I also believe that Indian engineering is capable of producing the world’s best”
 

A M Naik, Chairman Emeritus, L&T