More than 15% of married couples in India struggle to conceive, making infertility a serious health concern. Over 40 million couples in a nation of over 1.4 billion people deal with this issue. Infertility can result from a number of problems, including pollution, smoking, drinking alcohol, erectile dysfunction, damaged sperm ducts, and disorders related to genes. Infertility is also caused by endometriosis, PCOS, postponed marriages, hectic lifestyles, and other conditions, particularly in women.

About IVF Industry

One of the fastest-growing sectors in India is IVF, which was valued at an astounding $793 million in 2020 and is projected to rise at a rate of 16% per year to reach $3.7 billion by 2030. The business is severely under-penetrated in India, with addressable demand being nine to twelve times higher than the present market, according to a private analysis by FundTQ, the country’s top mid-market investment bank. In addition, India remains a preferred destination for medical tourism due to the nation’s abundance of first-rate hospitals and knowledgeable reproductive specialists.

Branded IVF chains are expanding as a result of heightened regulatory scrutiny, such as that brought about by the Assisted Reproductive Technology (ART) Bill. Many small IVF clinics around the nation closed when the ART Bill was passed, which allowed controlled PAN India IVF chains to grow.

More than 2,500 IVF facilities are already operating in India in an effort to meet the rising demand. While the number is gradually increasing in both tier-1 and tier-2 cities, the unmet demand is being addressed by specialized IVF chains like Indira IVF, Gaudium IVF, Nova IVF, and Oasis Fertility in addition to multi-speciality hospital chains like Cloud9, Apollo, and CK Birla Hospital. To ensure that the entire IVF process is kept a secret from society and because of the social stigma associated with IVF, couples seeking treatment prefer specialized IVF chains over multi-speciality hospital chains.

A number of sizable, specialized IVF leaders have succeeded in making a mark on the market. In this category, Indira IVF is the frontrunner, operating over 115 centers throughout India and completing 45,000 cycles yearly. With more than 60 locations around India, Nova IVF performs 13,000 cycles a year. With more than 30 locations across six states, Gaudium IVF is among the top 5 IVF chains in the US. It executes more than 2500 cycles annually with an industry-leading success rate of 65%. The organization has a proven track record of managing high-profile cases, including one involving renowned Bollywood actress Ms. Shilpa Shetty, and complicated Multiple Attempt Patients (MAP). Furthermore, the majority of locations serve the nation’s poorer classes, but Gaudium is one of the few chains with a PAN India presence that serves the country’s upper middle class.

The founder and CEO of Gaudium IVF, Dr. Manika Khanna, said, “We are doing a fund-raise of over INR 100 crores to help couples address the challenge of infertility,” in response to a question regarding the company’s future expansion plans. Through this fundraiser, we will be able to assist infertile couples in realizing their dream of becoming parents by opening many new centers in important Indian cities and expanding our pan-Indian reach. In order to make our services more inexpensive and accessible to a larger number of patients, we have also introduced a flexible payment plan that enables customers to make payments in convenient installments.

FundTQ has been designated as the fundraising’s exclusive advisor.

India is increasingly being chosen as a destination for IVF treatments due to the country’s expanding medical tourism industry. The only chain with numerous foreign accreditations and a sizable patient base from outside is Gaudium.

Dr. Manika goes on to say, “We want to position India as a desirable location for these specialized procedures, and the country has a far higher success rate than other nations.” The Gaudium brand connects strongly with global standards, superior medical care, and success rates, enabling us to positively impact the lives of childless couples everywhere. India’s IVF market is expected to grow because its costs are a tenth of those of other countries.

Due to the potential for future growth, the IVF industry has seen a rise in consolidations. Examples of these transactions include the majority acquisition of Indira IVF by Baring PE Asia EQT, the acquisition of IVIRMA, a Spanish IVF center, by PE giant KKR, and an investment in Ovation Fertility by Morgan Stanley Capital Partners. In a similar vein, Prelude Fertility, which has had Lee Equity support since 2016, collaborated with Inception Fertility to establish what it claims to be the biggest supplier of all-inclusive reproductive therapies in the United States.

India is raising the fertility flag in a world where it can be difficult to determine whether to use family planning. With worldwide recognized art facilities and jaw-droppingly successful lab equipment, India is quickly becoming as the world’s IVF hotspot.

check out our Investment Banking Service

Due diligence is a crucial step in the ever-changing startup funding landscape that has the power to make or destroy an investment agreement. Knowing the details of due diligence is crucial for confidently navigating the funding route, regardless of experience level or level of inexperience with startups. We’ll cover what company founders need to know about due diligence in this extensive guide, including its goal, when it happens, what investors look for, and how well-prepared businesses can be.

Understanding Due Diligence: A Fundamental Overview

In the startup space, due diligence refers to the meticulous audit process undertaken by potential investors before committing to funding a business.Due diligence’s main goal is to confirm that the startup’s information matches real facts in order to protect investors from danger and provide transparency.

Investors use due diligence in search for any hidden issues or warning signals that could impact the investment, in addition to ensuring that a company is speaking the truth about what it says. Two factors that can influence how extensive and rigorous the due diligence process is are the stage of development at which a startup is in and the amount of capital involved.

When Does Due Diligence Occur?

Due diligence typically occurs after a startup has presented to an angel or venture capital firm. After investors express interest in the plan, it seems sense to begin the process of researching the company. This process is comparable to conducting a thorough survey before purchasing real estate, which is a crucial stage for investors to feel safe and confident in the venture.

The duration of the due diligence process might vary, ranging from a post-pitch in-person discussion to a more drawn-out investigation involving attorneys, accountants, and a thorough evaluation of all supporting material. Consequently, investors use this crucial stage to verify the startup’s claims, evaluate its financial standing, and investigate the operational and legal elements of the company.

What Will Investors Ask for During Due Diligence?

During due diligence, investors usually use a basic checklist that is customized to meet their needs. Even while each investor may have a different checklist, companies can expedite the process by ahead of time creating standard documentation. To assist startups in successfully navigating the due diligence evaluation, consider the following eight points:

1. Financial Information and Business Plan:

Present financial statements and a well-developed business plan outlining revenue streams, cost structures, and growth projections for investor assessment.

2. Intellectual Property Rights:

Submit copyright, patent and trademark to protect assets and ensure legal protection of intellectual property.

3. Minutes and Business documents:

Provide corporate records, meeting minutes, and legal documents to demonstrate regulatory compliance, corporate governance, and transparency in business operations.

4. Lawsuit Transparency:

To reduce risks and give prospective investors transparency, disclose information about any pending or settled legal disputes, settlements, or litigations.

5. Team Interviews and Background Checks:

Facilitate interviews with key team members and allow investors to conduct thorough background checks to assess team competence and reliability.

6. Supply Chain Contracts and client Data:

To assess market reach and scalability, share with suppliers contractual agreements and information into client demographics, retention tactics, and acquisition methods.

7. Revenue and Sales Numbers:

Provide comprehensive revenue reports, sales projections, and customer acquisition metrics to showcase business growth potential and financial performance.

8. Market Analysis:

To show that you understand the market, see growth prospects, and evaluate the positioning of your competitors, provide comprehensive market research, competition analysis, and industry insights.

How to Prepare a Startup for Due Diligence?

Preparing for due diligence is a strategic opportunity for startups to conduct an internal audit, optimize formalities, and verify their growth plans. Consequently, it entails transparent organization and careful attention to detail, making sure that every documentation is correct and consistent with the investment pitch.

Preparing the following ahead of time can help startups:

Articles of incorporation, ownership structure specifics, organizational chart, and other corporate information and structure.

• Material Importance Agreements including overview of marketing, service, and distribution agreements and Documentation of agreements with major customers and suppliers.
• Intellectual Property and Technology like copies of intellectual property agreements and invention agreements. Overview of owned and developed items, including patents and trademarks.
• Documents pertaining to labor and employment, such as conventional employment contracts, personnel data, pension policy details, and any unpaid balances.
• Financial projections, reports comparing the budget to the actual, and financial statements. details about capital commitments, mortgages, and debt securities.

Startups can give prospective investors a strong and transparent profile by carefully arranging these elements, which will inspire trust and make the due diligence process go more smoothly.

Why Should Startups Be Grateful for Due Diligence?

While due diligence may seem like a rigorous and meticulous process, startups should view it as a valuable opportunity for improvement. Due diligence can reveal areas for optimization, enabling businesses to strengthen any areas of weakness and improve their operations. Additionally, the due diligence procedure gives companies an opportunity to demonstrate their dedication to accuracy and transparency—qualities that are critical to winning over investors.

Due diligence is essentially a two-way street where investors learn everything there is to know about the startup and entrepreneurs learn important things about possible places to improve. Startups that embrace due diligence as a cooperative and advantageous process have a better chance of obtaining capital and progressing to the next stage of development.

Conclusion

Due diligence is a crucial milestone that necessitates planning, openness, and a dedication to accuracy in the cutthroat world of startup fundraising. Consequently, startups that handle due diligence with honesty and diligence will have an easier time getting funding and starting a lucrative new stage of development.

It’s critical for startup founders to view due diligence as a strategic opportunity rather than a barrier. Startups can boost their chances of getting the money required for success by proactively compiling the relevant documentation, understanding investor expectations, and exhibiting a transparent and well-organized profile. These actions will help them negotiate the due diligence landscape with confidence.

Due diligence serves as more than just a gatekeeper—rather, it opens doors for development, advancement, and successful collaborations between investors and businesses. Accept it, get ready for it, and allow it to spark the beginning of the next phase of your business ventures.

FundTQ acted as an exclusive advisor for Mom’s Home in raising its first institutional investment from Mistry Ventures. Mistry Ventures invested an undisclosed amount in the Organic Baby Essentials brand, Mom’s Home, known for its organic clothing and baby essentials range for kids aged 0-5 years. This marks a significant milestone for Moms Home raise funds.

MomsHome specialises in 100% organic bamboo clothing, organic diapers, infant clothing, maternity range and baby organic quilts. FundTQ, the exclusive advisors to MomsHome, played an integral role in making this transaction possible.

FundTQ, a leading mid-market investment banking firm, played a pivotal role in connecting MomsHome with potential investors who shared a common commitment to fostering positive change. By leveraging FundTQ’s innovative approach to fundraising and its wide investor network, MomsHome was able to connect and successfully raise funds from Mistry Ventures.

FundTQ’s unique approach towards investor connect, startup fundraising, valuation discussions enhances its ability to connect with investors and successful closure of deals. By leveraging technology and data-driven insights, FundTQ facilitates meaningful connections between fundraisers and investors, streamlining the fundraising process and maximizing the potential for success.

The success of Moms Home raise funds campaign showcases the effectiveness of FundTQ’s platform. It acts as a bridge between organizations with impactful missions and investors aiming to make a difference. FundTQ is among the leading investment banks in India known for its strategic approach. It specializes in Startup Fundraising, Mergers and Acquisitions, Startup Valuation, and Wealth Management.

About FundTQ

Founded in 2020, FundTQ operates as an investment banking company. It offers various services including Fundraising, M&A, Wealth Management, and Impact Funding. The company operates with a success-driven approach, placing significant importance on achieving successful outcomes for each transaction within its portfolio.

FundTQ stands out as one of the leading Investment Banks, ranking among the Top 10. Its notable expertise spans various industries, with a remarkable track record in both domestic and cross-border transactions. The company’s diverse client base demonstrates its capacity to support startups and MSMEs throughout their journey. They help secure growth-stage funding and facilitate significant transactions. Additionally, they offer expert M&A advisory services.