In a significant deal in India's healthcare sector, private equity firm Kedaara Capital has emerged as the leading contender to purchase a majority stake in Tynor Orthotics Pvt. Ltd., a prominent manufacturer of orthopedic supports and aids. The transaction is poised to value the entire company at an impressive ₹3,500 crore to ₹4,000 crore.
The Deal Structure and Exit for Lighthouse
According to sources familiar with the negotiations, the deal will involve the sale of approximately 60% of the total holding in Tynor Orthotics. This stake will be offloaded by the existing private equity investor, Lighthouse Funds, and the company's promoters, the Singh family. The transaction is largely structured as a secondary share sale, facilitating an exit for Lighthouse while providing growth capital for the company's next phase.
This development marks a shift from earlier discussions. In 2024, Singapore's sovereign wealth fund Temasek was reportedly the front-runner to pick up a significant minority stake, outpacing other global funds like Warburg Pincus and Norwest Venture Partners. Those talks were put on hold, leading Tynor to reopen the sale process with the appointment of investment bank O3 Capital to manage the mandate.
Tynor Orthotics: A Profile of Growth
Founded in 1993 and now managed by its second generation, Tynor has established itself as a key player in India's medical devices space. Based in Mohali, the company boasts a diversified portfolio of over 150 products. Its range includes body braces, fracture and walking aids, traction kits, advanced knee braces, finger splints, and various foot care and cervical support products.
The company's financial performance underscores its strong market position. As per data from Tracxn, Tynor's revenues saw robust growth, increasing to ₹495.5 crore in the financial year 2024 from ₹394.1 crore in FY23. Profits followed a similar upward trajectory, rising to ₹73.4 crore from ₹50.9 crore during the same period.
Sector Tailwinds Driving Investor Interest
The heightened interest from private equity investors like Kedaara Capital is fueled by powerful structural growth drivers in India's medical devices sector. Key factors include:
- Rising health insurance penetration across the country.
- Improving affordability and healthcare access.
- A rapidly expanding patient base requiring orthopedic and supportive care.
- Infrastructure development opening new markets in tier-2 and tier-3 cities.
According to Invest India, the sector is projected to grow at a compound annual growth rate (CAGR) of 16.4% to reach $50 billion in the next five years. An EY report also highlighted the growth of the broader med-tech industry, valued at $12 billion in FY24, benefitting from rising incomes and growing medical tourism.
The deal represents a substantial return for early investors. It comes nearly eight years after Tynor raised $21 million in May 2018 at a post-money valuation of $103.3 million from investors including Lighthouse Funds, Thuasne, and Vihome B.V.
When contacted for comment, Tynor's founder Pushvinder Jit Singh, Lighthouse Funds, Kedaara Capital, and O3 Capital did not respond to emails.
