Strides Pharma Science Ltd has announced a strategic investment in its wholly owned subsidiary, Pivot Path Pvt Ltd, by a consortium led by Ascent Capital along with co-investor Vintage Classic, in a transaction that values the business at ₹230 crore on a post-money basis.
The deal enables Strides to realise ₹100 crore while retaining a 20% stake in Pivot Path. It also includes a primary capital infusion of ₹50 crore to support the subsidiary’s next phase of growth.
Value unlocking strategy
The company said the transaction aligns with its strategy of creating, scaling and unlocking value from high-potential businesses while continuing to participate in their future growth.
The proceeds are expected to strengthen Strides’ balance sheet, while the fresh capital will enable Pivot Path to accelerate its expansion strategy.
Journey from GCC to independent platform
Pivot Path originated within Arco Lab Pvt Ltd, Strides’ Global Capability Centre (GCC), where it developed capabilities across life sciences consulting, digital transformation, quality and compliance, and technology-enabled operational services.
As demand from external pharmaceutical and life sciences companies increased, the business evolved into an independent platform serving leading global customers. To support its next phase of growth, expand its global footprint, build agentic AI platforms and access external capital, the business was carved out into a separate entity.
Following completion of the transaction, Pivot Path will be reclassified as an associate of Strides Pharma Science.
Profitable growth platform
The transaction was based on an independent valuation conducted by a SEBI-registered merchant banker, reflecting Pivot Path’s differentiated capabilities, established customer relationships and long-term growth prospects.
For FY26, the carved-out business reported revenue of ₹144 crore, including services rendered to Strides, and EBITDA of ₹16 crore, highlighting its profitable operating model and growth trajectory.
Platform with specialised capabilities
Strides Pharma Science Managing Director and Group CEO Badree Komandur said Pivot Path demonstrates the company’s ability to identify, incubate and scale high-potential businesses.
“Over the past years, we have built a platform with specialised capabilities, a growing customer base and a strong foundation for future growth. As the business enters its next phase, we believe this is the right time to bring in a strategic investment partner with the expertise and capital to accelerate its growth,” he said.
Ascent Capital Managing Director and Founder Raja Kumar said Pivot Path has built deep domain expertise across critical and non-discretionary segments of the pharmaceutical industry.
“These capabilities have been rigorously honed within the Strides stable, creating a strong foundation for the company’s next phase of growth,” he added.