HealthQuad, a New Delhi-based early-stage venture capital firm, has raised an initial $21 million for its latest healthcare-focused fund, according to its filing with the US Securities and Exchange Commission.
HealthQuad Fund II, which has a target of $73.4 million, received commitments from three investors so far since its first sale in June, the firm said. The first fund had hit the final close at $12 million in June 2017.
HealthQuad was founded in 2016 by the co-founders of Singapore-based healthcare-focused private equity firm Quadria Capital, Amit Varma and Abrar Mir, in partnership with Belgium-based Kois Invest. It was formed as the venture capital arm to capture opportunities in the healthcare sector at an early stage.
The firm said it seeks to invest in early-stage technology-enabled or thematic healthcare ventures in their commercialisation and expansion stages, with a focus on healthcare delivery services, life sciences, medical devices and technology, healthcare IT, and associated healthcare services.
Apart from being able to invest in more companies, the larger fund will also give HealthQuad the headroom to cut larger cheques and bigger follow on rounds for its portfolio companies.
On an average, the fund has been investing around $2-3 million per deal. With the new fund, HealthQuad will be able to invest up to $9-10 million, Pinak Shrikhande, Principal at Healthquad, earlier told DealStreetAsia.
HealthQuad currently has seven companies under its portfolio – Medikabazaar, an online B2B platform for doctors and hospitals; Strand, a specialised diagnostic company; Technology Healthcare Big Data Analytics, a data analytics and intelligence platform; Asian Institute of Nephrology and Urology, a renal-care focused tertiary care hospital; Neurosynaptic Communications, a telemedicine solution provider; hospital group Regency Healthcare, and Hi Impact Consultant, a healthcare staffing company.
Besides HealthQuad, founders Mir and Varma also run a healthcare-focused private equity fund Quadria Capital, which closed its second fund at $595 million early this year.
While private equity firm Quadria and HealthQuad have common promoters and operate in the healthcare space, both platforms operate as separate entities.
Quadria Capital concentrates on growth-stage companies in the sector across South Asia and Southeast Asia, while HealthQuad is focused on early-stage firms in India.
According to venture capital data tracker Tracxn, healthtech startups in India went up to $940 million in 2019, a significant rise from $586 million in 2019. The last quarter was the best with $436 million being raised.
However, this year saw sharp fall in the country’s healthtech funding, with just $72 million raised in the first quarter and another $103 million in the second quarter.