$20 BILLION INVESTED IN DIGITAL HEALTH SECTOR SINCE 2010: REPORT

Healthcare Information Technology (IT) and Digital Health sector Digital health sector in India has great potential. It has seen many investments in the last few years with a lot of funding being pumped into the sector…

NEW DELHI, APRIL 20, 2017: Digital health sector is one of the fastest growing sectors in India which has now received $20 billion in venture capital (VC) funding since 2010. VC funding, including private equity and corporate venture capital, in the Health IT sector almost doubled quarter-over-quarter (QoQ), coming in at $1.6 billion in 165 deals compared to $845 million in 159 deals in Q4 2016.
VC funding in Q1 2017 was also up compared to Q1 2016 when nearly $1.4 billion was raised in 146 deals, says a report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) / Digital Health sector for the first quarter of 2017 released by Mercom Capital Group, llc, a global communications and research firm.

Total corporate funding in health IT companies – including VC, debt and public market financing came to $1.8 billion compared to $1 billion in Q4 2016.

 

“Digital health funding is off to a fast start this year and there was no visible ‘Trump effect’ on investments in the sector, at least in the first quarter, and publicly-traded Digital Health companies actually fared much better in Q1 than last year,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

 


Healthcare practice-centric companies received 35 per cent of the funding in Q1 2017, raising $574 million in 50 deals compared to $261 million in 42 deals in Q4 2016. Consumer-centric companies received 65 percent of the funding this quarter, bringing in $1 billion in 115 deals compared to $584 million in 117 deals in Q4 2016.

Notable Indian Transactions in Q1 2017:

VC Funding:

Practo – a physician search engine used to book appointments and rate providers – raised $55 million in funding from Tencent Holdings, ru-Net, RSI Fund (owned by Recruit Holdings), Thrive Capital, Sequoia, Capital G (formerly Google Capital), Matrix Partners, Altimeter Capital, and Sofina. Practo has raised $175 million in VC funding to date.

WeHive Technologies (TinyStep) – an online parenting service that focuses on providing information, advice and a social network for parents – raised $2 million in Seed funding from Flipkart.

Celes Care – a virtual health clinic for women – raised $1.5 million in funding from Ventureast, Endiya Partners, Eight Roads Ventures, F-Prime Capital Partners and other investors.

Davman Technology Services (Juno Clinic) – a provider of online and offline counseling and treatment of psychological or psychiatric conditions that include depression, anxiety, relationship counselling, obsessive compulsive disorder, attention deficit hyperactivity disorder, bipolar disorder, and addiction to alcohol and smoking among others – raised $1.2 million in funding from a clutch of angel investors including – Atul Nishar (founder of Hexaware Technologies and Aptech Computers), the family office of Sunita and Neeraj Bhargava (founder of Zodius Capital), Vikas Khemani (president and chief executive of Edelweiss Securities), and other angels.

InnerHour – an online psychological wellness platform – secured $450,000 in funding from Venture Works and financial advisory firm Batlivala & Karani Securities.

Yolo Health – a provider of telemedicine services in India through walk-in kiosks and video conferencing – raised $235,000 in funding from Chandigarh Angels Network.

Fitso – a developer of a fitness app – raised $200,000 in Angel funding from Sujeet Kumar, Bhupender Singh, and Yashish Dhaiya via the fund-raising platform, LetsVenture.

Medinfi Healthcare – an online platform that helps users find doctors and hospitals for routine appointments – raised $150,000 in its sixth and seventh rounds of angel funding from Vinod Martin, chief operating officer of a Singapore-based IT services company; Singapore angel investor Evan Lim; Kanchan Ghoshal, a Qatar-based alumnus of management school XLRI; and Ram Kumar Kakani, a professor at XLRI.

BabyOnBoard – developer of a parenting app for parents and families, connecting and bonding the family around baby-pictures by creating a private and secure family space – raised an undisclosed amount of investment from individual investors.

Elite Tech Healthcare (Klinic App) – an online platform which allows users to compare and book pathology labs in India – raised an undisclosed amount of funding from Om Chaudhry, the founder of private equity fund Fire Capital.

Proparent Solutions (Parentune) – an online community for parents to share concerns about their children and compare notes with other parents – raised an undisclosed amount of funding from Kae Capital and SEGNEL Ventures.

M&A:

Manna Healthcare – creator of a health and weight loss coaching app – acquired Fitard – developer of a rewards-based mobile fitness app. No financial terms were disclosed.

Tech Mahindra – an India-based provider of IT and business process outsourcing – acquired Florida healthcare IT consulting companyCJS Solutions Group (dba The HCI Group) for $110 million.


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