Healthcare is one of the biggest revenue and employment generating sectors in India and was expected to touch US$ 160 Bn by 2017. Like all other sectors, healthcare is abuzz with technology-driven startups. At present, India is home to as many as 240 healthtech startups, leading innovation and redefining healthcare.
Inc42’s recent analysis of the Indian startup ecosystem across sectors threw up some interesting findings. According to our Indian Tech Startup Funding Report H1 2018, deals and funding in the sector dipped in the first half of 2018.
In H1 2017, healthtech witnessed 55 deals and a total funding of $195 Mn, while in H1 2018, only 40 deals were signed and $180 Mn funding was raised. Inc42 DataLabs also revealed that in FY 2017, Indian healthtech startups had raised about $346 Mn across 111 deals.
So, what changed in the last six months to effect this decline?
In 2016 and early 2017, a major portion of healthcare investments went into startups that were working on telemedicine, enabling doctor appointments, and other health apps, but since H2 2017, that pie has been shared by wearable tech gadgets, genetic research, and the smart diagnostics space, which have seen rapid growth. Naturally, the funding slices have become smaller.
But deal and funding numbers alone don’t tell the entire story. Healthtech is still going strong. So, in this edition of What The Financials, we crunched the numbers of four leading players in the space of e-pharmacy and online diagnostics — 1mg, Healthkart, Pharmeasy, and NetMeds — to analyse their financial health as well as that of the healthtech industry. Here’s what we found: