Bengaluru-based drug discovery startup Peptris has raised Rs 70 crore (approximately $7.7 million) in a Series A funding round to push its AI-powered drug pipeline closer to clinical trials.
The round was co-led by IAN Alpha Fund and Speciale Invest, with participation from Tenacity Ventures, BYT Ventures, and other investors.
With fresh capital in hand, Peptris plans to expand its pipeline, strengthen its science and AI teams, and move multiple drug programs toward clinical readiness over the next two years.
Why Drug Discovery Still Needs Disruption
Despite decades of scientific progress, drug discovery remains slow, expensive, and risky. It can take more than a decade and billions of dollars to bring a new drug to market. Most potential drug candidates fail long before reaching patients.
The biggest bottleneck lies in the pre-clinical stage. At this early phase, companies invest heavily in testing molecules, but scientific uncertainty often leads to failure before human trials even begin.
Peptris believes artificial intelligence can significantly reduce this risk.
How Peptris Uses AI to Design Better Drugs
Founded in 2019 by Narayanan Venkatasubramanian, Shridhar Narayanan, Anand Budni, and Amit Mahajan, Peptris has built AI models that generate novel molecules and predict critical drug development parameters early in the discovery process.
Designing Novel Chemical Entities
The company’s platform creates Novel Chemical Entities (NCEs), which are new molecules with potential therapeutic benefits. Instead of relying solely on traditional trial-and-error methods, Peptris uses data-driven algorithms to design and evaluate molecules faster and more efficiently.
Predicting Failures Before They Happen
One of the major reasons drugs fail is unexpected toxicity, poor bioavailability, or weak efficacy. Peptris’ AI platform aims to predict such issues early by analyzing multiple parameters simultaneously.
This allows researchers to:
- Filter out weak candidates sooner
- Optimize promising molecules faster
- Make better-informed decisions before expensive lab experiments
The result is a shorter and more cost-effective discovery cycle.
Beyond New Drugs: Repurposing and Rescue Programs
Peptris is not limiting itself to creating brand-new molecules.
Drug Repurposing
Drug repurposing involves identifying new therapeutic uses for existing drugs. This approach can significantly reduce development time because safety data may already be available.
Rescue of Shelved Clinical Assets
Many pharmaceutical companies shelve clinical-stage drugs due to strategic shifts, funding issues, or limited initial success. Peptris is exploring “rescue programs” to revive such assets by identifying new indications or improving their development pathways.
According to the company, its platform has already led to multiple NCE discoveries, as well as repurposing and rescue opportunities, with several programs advancing toward clinical development.
How the Rs 70 Crore Will Be Used
The newly raised funds will be deployed across three major areas:
Advancing Existing Programs to Clinical Readiness
Peptris plans to move its leading candidates closer to clinical trials. This involves additional validation, optimization, and regulatory preparation.
Expanding the Pipeline
Over the next 24 months, the company aims to initiate several new NCE programs, alongside multiple repurposing and rescue initiatives. This expansion will strengthen its long-term portfolio and diversify risk.
Strengthening Scientific and AI Teams
Drug discovery at the intersection of biology, chemistry, data science, and artificial intelligence requires multidisciplinary expertise. The company plans to enhance its teams across:
- Biology
- Medicinal chemistry
- Data science
- AI research
Building strong in-house capabilities will be key to sustaining innovation.
A B2B Model Focused on Partnerships
Peptris operates on a B2B engagement model. Instead of commercializing drugs directly, the company collaborates with pharmaceutical, biotech, and select FMCG partners.
It licenses assets and co-develops programs, allowing larger companies to take promising candidates into late-stage trials and commercialization.
This approach enables Peptris to:
- Share development risk
- Access global clinical expertise
- Scale impact without massive capital expenditure
Therapeutic Areas in Focus
Peptris is targeting therapeutic areas with significant unmet medical needs, including:
- Rare diseases
- Inflammation
- Oncology
- Women’s health
These segments often face limited treatment options and high development complexity, making them ideal candidates for AI-driven discovery approaches.
By focusing on these areas, the company aims to create meaningful impact for patients, caregivers, and healthcare systems worldwide.
Why This Funding Matters
India’s biotech and deep-tech ecosystem is steadily gaining momentum. Funding rounds like this highlight growing investor confidence in AI-led healthcare innovation.
With strong backing from deep-tech-focused investors and a clear roadmap toward clinical-stage development, Peptris is positioning itself as a serious player in next-generation drug discovery.
If its AI platform continues to deliver validated molecules and successful partnerships, the company could help reshape how early-stage drug research is conducted — making it faster, smarter, and less failure-prone.
The next 24 months will be critical as Peptris works to translate its algorithms and lab discoveries into clinical-stage assets. For now, the Rs 70 crore Series A round provides both the capital and the credibility to push forward.
