GSK Velu backs US-based dental lab chain Leixir

Serial healthcare entrepreneur GSK Velu is backing US based dental lab chain Leixir by participating in a recently closed $12 million fund raise. Velu's family office, GSK Ventures, along with Atlanta-based Source Capital invested the money through a combination of equity and mezzanine financing.

Leixir Resources Private Ltd has built a network of dental labs ---across Florida, New York, Toranto and Vancouver -by acquiring existing facilities and leveraging digital technology to drive immediate and long term synergies.IvyCap Ventures is an early investor in the company .

Founded by Harmeet Singh Bindra and Mangesh Sholapure, Leixir will deploy the capital to extend the North American chain and integrate it into the global supply chain.The dental lab market in the US is estimated at $16 billion but remains extremely fragmented, with the largest player having annual revenue of just around $200 million. Leixir plans to build create a robust Indian outsourcing arm involving design and manufacturing of crowns, implants and dentures. The outsourced market is currently estimated at $4 billion and mostly sourced from China. Leixir will scout for a manufacturing facility in India.

"In the next two years, Leixir is well positioned in the fast growing North American dental service market with plans to tap the outsourcing potential in India," Velu said commenting on the in vestment.

Investment bank Veda Corporate Advisors advised on the transaction. Velu set up his family office and a $100 million private equity fund Stakeboat Capital after selling his stake in Mumbai based di agnostics chain Metropolis Labs to Carlyle Group for nearly $150 million.

Velu's other established companies include Trivitron Healthcare, Maxvision Eye Hospitals and two JVs with Apollo Hospitals to run dialysis and dental clinics.