Boston headquartered medical devices company Axio Biosolutions has raised $7.4 million in Series B funding round led by Ratan Tata’s RNT Capital along with the participation of existing investors Accel Partners and IDG Ventures.
With the newly acquired funding, Axio is aiming for an expansion into newer markets like Europe and USA as well as production affordable yet highly effective medicines, especially in the advanced wound care segment. It is planning for an operational profit in 2 years.
Axio, which has its corporate office in Bengaluru and a GMP-certified manufacturing facility in Gujarat was founded in 2010 by Leo Mavely to cater the needs of emergency cases by the introduction of Axiostat, a hemostat dressing kit that stops bleeding within a few minutes. It is made using a natural biomaterial Chitosan which is extracted from shellfish. Axiostat causes adhesion of a wound using the concept of charges. Blood cells carry a net negative charge. When the blood comes in contact with positively charged Axiostat, bonds are formed between the oppositely charged parts. This strong adhesive fills up the rupture faster and prevents blood from leaking out.
The complete kit costs around Rs 5000 and is used by Indian Armed forces, BSF, NSG, and other para-military forces, as part of their defense kit.
In 2010, Axio Biosolutions raised seed funding from Ahmedabad based Gujarat Venture Finance Limited and grants from Department of Science and Technology, India. In 2015, Accel Partners and IDG pumped an undisclosed amount in the med-tech startup.
Reputed hospitals including AIIMS, Manipal, Apollo, Breach Candy and Fortis use Axio’s product.
Axio Biosolutions employs around 80 people across Bengaluru, Gujarat, and the USA and its manufacturing plant in Ahmedabad has an ability to produce over 800,000 units in a year.
Ratan Tata has been an angel investor in a number of popular Indian startups including Ola and Snapdeal.