Those with Consumer Centric Business Models and Digital Modes of Service Delivery Attract Investments worth $ 237 million in 2015-16 YTD
Mumbai, September 21, 2016: News Corp VCCircle, India’s leading publisher of start-up and private equity news, data and information, and an integral part of global diversified media, news, education and information services group, News Corp, has today shared ‘VCCEdge Funding Insights’ focused on India’s Healthcare sector.
News CorpVCCEdge, the financial research platform of News Corp VCCircle, offers information on M&A’s, private equity and venture capital transactions including deal terms, structures, deal amounts and valuations.
VCCEdge Indian Healthcare Sector Funding Insights
Sector Fundometer
· Since 2012, the Indian Healthcare sector has witnessed 558 funding deals to the tune of $ 5657 million.
· The year 2016 so far has registered 88 funding deals amounting to $ 397.41 million. This includes 54 Angel/ Seed deals worth $ 11.19 million, 23 Venture Capital funding deals worth $ 155.83 million and 11 Private Equity deals amounting to $ 230.39 million.
· When compared to the last two years, the sector had garnered $ 1342 million and $ 1458 million across 124 and 144 deals in 2014 and 2015 respectively.
· While the overall numbers for 2016 YTD are down compared to 2015, mirroring funding trends across sectors, the Angel/ Seed and Venture Capital funding deal values for 2016 YTD are at par and even surpass those of 2014
Healthcare Startups
· Start-ups in the healthcare space have received funding worth $ 735 million from 336 deals since 2012.
· In 2016, there have been 73 funding deals amounting to $ 113.45 million.
· 2015 witnessed the highest numbers in healthcare start-up funding with 97 deals worth $ 289 million while 2014 had 73 deals to the tune of $ 109 million.
· There were 13 Series A funding deals worth $45.33 million and 6 Series B deals worth $ 56.92 million in 2016YTD. While these numbers may be down when compared to 2015, they are above par in terms of deal values recorded in 2014.
Start-ups with consumer centric digital modes of service delivery have raked in $ 77.3 million and $ 160 million in 2016 YTD and 2015 respectively.
Segment Focus
· In 2016, eHealth players like online pharmacies and aggregator portals topped in terms of deal volume with 35 deals worth $ 50.96 million. eHealth lead the deals activity in 2015 with 40 deals worth $ 70.54 million.
· In terms of deal value, Healthcare facilities ($ 110.9 million from 9 deals), Biotech ($ 98.67 million from 4 deals) and Healthcare Services ($ 73.51 million from 20 deals) are the leading segments this year when compared to pharmaceutical production in 2015 which cornered $ 759.57 million worth of investments from 14 deals (down to 3 deals worth $ 54.58 million in 2016).
Top Funding Deals for 2016
· Biotechnology was the segment which attracted the top Private Equity and Venture Capital deals so far in 2016 with Quadria Capital’s investment of $ 70.27 million in Concord Biotech Ltd. and the $ 27.4 million venture capital investment made by Tata Capital Innovations Fund, Sands Capital Management LLC, Sequoia Capital India Advisors Pvt. Ltd., Accel India Venture Fund II LP, and RA Capital Management LLC in Mitra Biotech Pvt. Ltd.
· Other top private equity deals during the year were in the healthcare facilities and services space such as that of ADV Opportunities Fund I LP investing $ 45 million in Dr. Agarwal’s Health Care Ltd and TPG Growth Equity III LP investing $ 33 million in Cancer Treatment Services International Inc.
Investment Outlook
Sharing the Indian Healthcare Sector Investment Outlook for 2016 and beyond, Nita Kapoor, Head – India New Ventures, News Corp and CEO, News Corp VCCircle said, “Startups and investors alike see a huge opportunity in the demand and supply gap that exists in the Indian healthcare sector both as social cause and a business case. While startups with consumer centric business models and digital modes of service delivery such as facilitating doctor appointments, efficient information management system and online pharmacies have been attracting investor interest, trends suggest that we will see money backing those startups focusing on corporate tie-ups, medtech, virtual diagnostics & preventive care.” She added, “The increase in the share of startup funding in the overall healthcare investment pie from the range of under8 to 20% in the past to about 29% in 2016 so far is a telltale sign of the prospects of more investments in the sector.”
Corporate Comm India(CCI Newswire)
