Healthy Landscape for Indian health-tech start-ups: 4 unicorns & $2bn+ in Investments in 2021
Article authored by Gaurav Kumar Rana, Associate-Investments, IvyCap Ventures
The health-tech start-up space in India is witnessing exponential growth, particularly for the past two years now due to the Covid-19 pandemic. Be it online video consultation or procuring medicines online, managing chronic conditions. In addition, digital wellness health or diagnostic services and start-ups are using technology to cater to consumers from the comfort of their homes.
Investment in healthcare
India has attracted ~$2bn+ in investments in funding from VCs in 2021, which puts India just behind the US, China & UK. VC’s health-tech investments in India have surged 10 times over the last five years. Mumbai and London are two of the fastest-growing hubs globally for health-tech investment. There are more than 3000 health-tech start-ups in India currently.
This growth in the industry is primarily due to the following factors: an aging population, a growing middle class, a rising proportion of lifestyle diseases, a greater emphasis on public-private partnerships, and accelerated adoption of digital technologies, including telemedicine, in addition to increased investor interest and FDI inflows over the last two decades.
Overcoming the challenges
Yet, the growing healthcare industry is facing a few challenges which need to be streamlined to be a more robust space giving healthcare start-ups the much-needed growth leverage. Some of the challenges the healthcare sector is facing are:
Lack of healthcare mentors in India: Healthcare in India is an ever-evolving practice that is still growing to maturity. It needs mentors who can leave an enduring legacy and best practices for the next generation to follow.
Inadequate patient-related data: A patient’s medical history, concerns, and needs have to be documented systematically so that the professionals can follow all protocols in the same way. But the medical institutions lack the protocols & are laggard in tech adoption making it difficult to provide a uniform practice.
Healthcare Staffing Shortages: Many industry groups have predicted a shortage of around 100,000 doctors by 2030. Though teleconsultation has grown popular & could solve the accessibility problem for patients without adequate professional doctors, the technology may turn out to be of little use.
Lack of proper innovation strategies: Healthcare in India needs a technology-centric approach to ensure adequate healthcare distribution across the country. Currently, the healthcare industry is very metro-focused and has only medical professionals at the center of it, thus making it archaic in approach.
All in all, the healthcare industry in India is poised for a revolution across the board and will continue to evolve to offer safer and better practices. But healthcare enterprises have to consider a range of healthcare challenges that may emerge going forward.
About IvyCap Ventures
IvyCap Ventures — an early stage Venture Capital firm that nurtures entrepreneurs and their ideas into sustainable businesses, leveraging our Global Alumni Ecosystem.
