Total Funding In Healthtech Plunged 55% In 2022 To $1.4 Bn

Total funding in the healthtech companies in India plunged 55 per cent from USD 3.2 billion in 2021 to USD 1.4 billion in 2022 revealed in a report on the Indian HealthTech sector by LoEstro Advisors on Tuesday.  

The report said that the drop in healthtech funding was mainly due to a massive decline (75 per cent) in late-stage investments from USD 2.4 billion in 2021 to USD 606mm in 2022. Investors across the globe became cautious amid funding winter, current macro conditions, and rising interest rates. 

While the early-stage funding saw an increase of 26 per cent year on year (YoY) to USD 743 million in 2022, Seed-stage funding for the sector fell 52 per cent YoY to USD 75.2 million in 2022.

The report also revealed that the healthtech market in India is slated to double to USD 25 billion by 2025 with key drivers such as improving accessibility, increasing internet penetration, increase in chronic diseases and new innovations and improving affordability.

HealthTech in India can be segmented into two broad sectors - Curative care and Preventive care. ePharmacies and eDiagnostics account for the biggest market size of USD 7,500 million in the Curative care sector. 

"Online pharmacies include independent internet-only outlets, electronic subsidiaries of “brick-and-mortar” hospitals, and platforms serving pharmacy companies. E-pharmacies are acquiring a major stake in the pharma retail value chain with the major growth drivers being: unorganized nature of traditional pharma retail, governmental support, value and convenience offered and tremendous potential untapped in Tier II and Tier III cities," the findings of the study stated. 

The market size for preventive health is expected to reach USD 197 billion at 21 per cent CAGR from 2021-25. India's booming HealthTech market is offering diverse services, including corporate partnerships and convenient health insurance options. It also includes lifestyle monitoring features like step count and heart rate tracking, granting access to valuable health data. Additionally, the market covers supplements, nutrition management, and a variety of physical wellness options