Quadria Group Launches $300 Mn HealthQuad Fund After Split With KOIS

Healthcare-focused private equity firm Quadria Group has launched HealthQuad Fund III with a target corpus of $300 Mn including a $100 Mn green shoe option. 

HealthQuad was launched in 2016 as a separate investment vehicle within Quadria to focus on early-growth healthcare innovations. 

As part of the development, Quadria said in a statement that it will take full ownership of the HealthQuad platform following its separation from impact investor KOIS.

The fund will back 13-15 startups operating in the healthtech sector, including AI- based healthcare models, digital therapeutics , ambulatory care models, enterprise SaaS models and point of care devices, among others, HealthQuad founder and investment committee member Sunil Thakur told Inc42.

“HealthQuad Fund III will predominantly invest in India, with small discretionary allocation to Southeast Asia,” Thakur added.

In 2022, HealthQuad marked the final close of its second fund at $162 Mn. Back then, the fund targeted 10-15 early stage companies across high-growth segments of the healthcare sector in India.

Under its Fund I and II, HealthQuad counts Qure.ai, Medikabazaar, THB, Wysa, Ekincare, Redcliffe Labs, GoApptiv and Strand Life Sciences among its portfolio companies.

HealthQuad Fund III follows two earlier funds that supported early-stage, tech-enabled healthcare ventures in India.

“With the full ownership of Fund III and expanded leadership, we are better positioned than ever to deliver cross-regional value for our portfolio companies, across South Asia, Southeast Asia, and the GCC, creating an unparalleled platform for health innovation,” said HealthQuad cofounder Amit Varma.

This comes on the back of healthcare-focussed VC firm HealthKois launching a $300 Mn fund to back early and growth-stage startups, with an additional green-shoe option of $100 Mn (about INR 860 Cr).

The Healthtech Titanic

Healthtech investments in India peaked at $1.4 Bn in 2022. Following that, the sector did not attract significant funds until last year. In 2024, the investment graph for the Indian healthtech sector moved upwards.

As per a report by Inc42, funding in the healthtech startup surged 207% to $716 Mn in 2024 from $233 Mn in the previous year. 

Nevertheless, the sector continues to dip. In a recent statement at the three-day ‘Startup Mahakumbh’ event,  Indian Angel Network’s (IAN’s) cofounder Padmaja Ruparel said that the country is losing early stage healthtech startups to overseas players due to a lack of domestic capital.

Notably, several healthtech startups including Kenko Health, DayTwo, Nintee, and ConnectedH, shut operations in recent times.