Indian healthtech sector attracts record $1.9b VC funding in 2021: report

Photo: Vault Dragon website

India has ranked fourth globally for healthtech investments by venture capitalists (VCs) since 2016, new data from London & Partners and Dealroom.co shows.

India has attracted $1.9 billion in funding from VCs in 2021 till date in the healthtech sector, taking total investments by VCs in the space to $4.4 billion since 2016, the data showed.

The record $1.9 billion that Indian healthtech startups have raised from VCs till date in 2021, puts India just behind the US, China, and the UK.  Healthtech startups in the US have attracted $31.9 billion in 2021 till date, followed by healthtech startups in China, which attracted $4.1 billion. Healthtech startups in the UK have attracted $3.8 billion in 2021 so far.

Healthtech investments by VCs in the UK have grown nine times since 2016, the data showed, with healthtech startups in the UK raising just $420 million in 2016 from VCs. Healthtech investments by VCs in India, meanwhile, have surged 10 times over the last five years. In 2016, Indian healthtech companies raised $190 million from VCs, the data showed.

The UK and India are currently among the fastest growing destinations for healthtech investments, the report said. London and Mumbai feature in the top 15 list of global hubs for healthtech VC investment, demonstrating the increasing opportunities for collaboration between the two regions, the report said.

Investments in the healthtech space in London have grown 11.1 times over the last five years, faster than New York, Boston and the Bay Area, the report said. Healthtech firms in the city have attracted $1 billion from VCs in 2021 so far. Meanwhile, healthtech firms in Mumbai, attracted $1.2 billion so far this year from VCs, growing 121 times from $100 million in 2016, the data showed.

“Cities like Mumbai and London are two of the fastest growing hubs globally for healthtech investment, suggesting there are lots of opportunities for future collaboration between the two regions. We look forward to supporting Indian healthtech companies to access London’s thriving healthtech ecosystem,” said Hemin Bharucha, Country director, India, London & Partners.

The number of major funding rounds has also increased this year, with PharmEasy raising $1.04 billion in three funding rounds and Star Health raising $164 million in an equity round, the report said. Investments by VCs in the healthtech space have grown 280% over the last five years, the data showed. Further, the coronavirus pandemic has accelerated innovation in the space, the report said.

The article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.