Sequoia, ChrysCapital to exit India's Curatio
Sequoia Capital India and ChrysCapital Partners are set to exit Indian skincare brand Curatio, with Torrent Pharma agreeing to acquire 100% of the company for INR 20bn (USD 245m).
The deal will comprise INR 1.15bn in cash or cash equivalents upfront, representing an enterprise value of INR 18.85bn. The transaction is expected to close within one month.
Sequoia invested in late 2014, taking a 33.4% stake for INR 1bn, implying an enterprise valuation of USD 46.1m according to AVCJ Research. ChrysCapital committed USD 20m in 2018, taking a significant minority position. Both transactions facilitated exits for Fulcrum Ventures India, which provided seed funding in 2005.
Curatio offers cosmetic and paediatric skin and hair products via around 50 sub-brands, all of which are dermatologically tested. The company claims to leverage a network of 6,000 doctors across its core markets of India, the Philippines, Nepal, and Sri Lanka.
Some of the best-known brands include moisturising ointment Atogla, diaper hygiene cream B4 Nappi, and newborn bath soap Tedibar. There are also rash, inflammation, and skin disease medications, specialised shampoos, body washes, and sunscreens.
The top 10 brands account for 75% of revenue, which totalled INR 2.2bn in the 2022 financial year and is expected to hit INR 2.75bn in 2023. This compares to sales of INR 1.25bn at the time of ChrysCapital's investment. Dermatology accounts for 82% of revenue.
Torrent Pharma, which has interests in over-the-counter products, described the deal as an expansion in a fast-growing dermatology space. Cosmetic dermatology as a therapy market is estimated to have grown 18% a year on average for the past 10 years.
“Over the last fifteen years, Curatio has built a strong portfolio of differentiated products in the derma segment that are very well received by doctors and patients. We believe Torrent is best suited to further catapult the business which we have built,” Sequoia and ChrysCapital said in a statement.
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