Lilac Insights raises $5.2M debt from InCred Alternatives to fund genetics-testing expansion
What's the deal? Mumbai-based genetics testing company Lilac InsightsDealroom has a profile for this one. Try Dealroom → has raised Rs 50 crore ($5.2M) in bridge financing from InCred Alternatives. The transaction is structured as debt with optional equity conversion.
Lilac Insights, founded in 2011, offers diagnostic services for prenatal, newborn, and cancer genetics across more than 250 Indian cities. Centrum Capital acted as sole advisor on the deal.
Co-founder Gulshan Bakhtiani said the company chose debt over equity to avoid premature dilution. "Internal organisational developments were not yet fully reflected in our financial performance," he told VCCircle .
The company plans to use the capital to deepen penetration in existing markets, accelerate launches in pregnancy management, IVF, and oncology, and invest in IT and marketing infrastructure.
Why now? Lilac has spent the past few years focused on operational efficiency rather than growth — and it shows. Revenue from operations grew only modestly, from Rs 70.7 crore in FY23 to Rs 77.2 crore in FY25.
But the bottom line improved dramatically: from a loss of Rs 17 crore in FY23 to a profit of Rs 11 crore in FY26, with annual recurring revenue reaching roughly Rs 100 crore. The company has also appointed Sushant Kinra as joint chief executive officer to lead its next growth phase, targeting a 25% compound annual growth rate over the next three years.
What could go wrong? The debt-with-equity-conversion structure carries risks. If Lilac can't translate its operational improvements into meaningful revenue growth, it could face pressure from servicing the debt — or be forced into dilutive conversion terms later.
Revenue stagnation over the past three years is a concern. The company previously raised Rs 50 crore in equity from investors including Rockstud CapitalDealroom has a profile for this one. Try Dealroom → and the Allana GroupDealroom has a profile for this one. Try Dealroom → in 2021, yet top-line growth remained muted.
The signal: Lilac Insights' shift from equity to structured debt — after raising Rs 50 crore in equity from Rockstud Capital and Allana Group just four years ago — underscores a maturing Indian healthtech landscape where founders are increasingly willing to trade growth speed for valuation preservation. Classified as a "breakout" stage company on Dealroom, Lilac's bet is that its newly profitable operations can service debt while funding expansion, a calculus that only works if the targeted 25% CAGR materialises after three years of near-flat revenue.
Read more: VCCircle
