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Healthtech startups net $1.13 Bn in 2024: Entrackr Report

The Healthtech sector saw a strong recovery in 2024, with total capital raised surging to $1.13 billion, marking a significant rebound from previous downturns.

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Md Salman Ashrafi
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Healthtech

The Indian Healthtech sector is witnessing unprecedented growth, driven by a confluence of factors. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the healthcare and life sciences sector, with over 10,000 recognized startups in 2023, has experienced a remarkable CAGR of 127% since 2016.

A report by EY projects that the telemedicine market in India is expected to grow at a CAGR of 31%, while the e-pharmacy market is set to expand at 44% CAGR between 2019 and 2025, reaching a market size of $4.5 billion by 2025. The overall Indian Healthtech sector is poised to hit a potential market size of $50 billion by 2033, growing at an estimated CAGR of 26%.

This growth is largely fueled by the rise of telemedicine, which gained momentum during the COVID-19 pandemic. The sector's expansion also reflects the increasing reliance on digital healthcare solutions and the transformative role of Healthtech startups in reshaping the Indian healthcare landscape.

In terms of funding, the Healthtech sector saw a strong recovery in 2024, with total capital raised surging to $1.13 billion, marking a significant rebound from previous downturns. Leading startups such as PharmEasy, Engrail, and NephroPlus played a crucial role in attracting investor interest, while PharmEasy, MedPlus, and Entero Healthcare emerged as revenue leaders.

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This report by TheKredible provides an in-depth analysis of these trends, shedding light on the sector’s growth trajectory and future potential.

Year-on-Year Healthtech Funding Trend

The Healthtech sector has seen fluctuating funding trends over the years. In 2021, the sector attracted $983.67 million, followed by $965.74 million in 2022. However, 2023 saw a sharp decline, with funding dropping to $418.97 million. In 2024, the sector rebounded significantly, reaching $1.13 billion. This recovery was driven by growing investor confidence in AI-driven healthcare, diagnostics, telemedicine, and digital health solutions, highlighting the sector’s long-term potential.

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Leading Fundraisers of 2024

The year saw a total of 112 deals, with growth and late-stage funding contributing $880.6 million across 22 deals and early-stage startups secured $250.44 million through 72 deals, while 18 startups did not disclose the amount raised.

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Drug dispenser Pharmeasy led the funding list with $216 million in capital raised. Biotech firm Engrail and dialysis chain NephroPlus raised $157 million and $102 million, respectively. The list was followed by AI-driven healthcare startup Qure.ai, omnichannel diagnostics service provider Redcliffe, healthtech data analysis company HiLabs, wearable startup Ultrahuman, and managed care provider Even Healthcare. Visit here to get the complete list.

Financial performance of leading Healthtech companies in FY24

In FY24, PharmEasy, a medicine and healthcare management platform, topped the list with revenue from operations at Rs 5,664.29 crore, closely followed by MedPlus, an online pharmacy store, which reported Rs 5,624.85 crore. Entero Healthcare, a medicine supplier, secured the third position with Rs 3,922.31 crore, while CitiusTech, an enabler of healthcare organizations, generated Rs 3,536.16 crore.

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Other notable players include Tata 1mg, a medtech and healthcare management platform, with Rs 1,967.75 crore, and Cult.fit, a fitness and lab test services provider, which reported Rs 926.66 crore. MediBuddy recorded Rs 645.4 crore, and Pristyn Care generated Rs 600.52 crore. Akumentis Healthcare reported Rs 398.47 crore, while Innovaccer, a SaaS solution provider for healthcare organizations, rounded out the list with Rs 350.91 crore. Get the financial overview of all notable companies in the sector at TheKredible.

Consolidations in the Healthtech Segment

The Healthtech sector witnessed 12 mergers and acquisitions (M&A) deals in 2024, signaling a trend toward strategic consolidation. Some of the key deals included Suven Pharma’s acquisition of Sapala Organics for $27.65 million and Redcliffe Labs acquiring Celara Diagnostics for $7 million. Other notable acquisitions involved Thyrocare’s acquisitions of Think Health Diagnostics and Polo Labs and Acko’s acquisition of OneCare. Visit TheKredible for more details.

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Leading Healthtech Investors in 2024

Several prominent investors played a crucial role in shaping the Healthtech ecosystem in 2024. Some of the most active venture capital firms included Venture Catalysts, which invested in Butterfly Learnings, Sunfox Technologies, FlexifyMe, and Sova Health, and 360 One Asset Management, which backed PharmEasy, Qure.ai, and Toothsi (MakeO). Eight Roads Ventures made strategic investments in Engrail, HiLabs, and Spry Therapeutics, while HealthQuad focused on Qure.ai, Redcliffe Labs, and Red.Health (StanPlus). Other notable investors include Inflection Point Ventures (IPV), Bharat Innovation Fund, F-Prime Capital, HealthQuad, IvyCap Ventures, Rainmatter, and 100 Unicorns.

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Race to IPOs

As investor confidence in Healthtech continues to grow, multiple startups are gearing up for public listings. Portea has already received SEBI approval for its IPO, while Pristyn Care is in talks to go public. On the other hand, PharmEasy’s IPO remains on hold, and it is awaiting more favorable market conditions.

With the increasing demand for digital healthcare solutions, diagnostics, and AI-powered medical services, the sector is expected to see more IPO-bound companies in the coming years. Download the complete report [report PDF and master data sheet] here.

Conclusion

The Healthcare and by extension, the Healthtech sector has a long period of expansion ahead. A combination of demographics, skills, existing exposure, and opportunities will power the sector ahead. Investors have their task cut out sorting through the many forms that will sizzle, only to fizzle out, while some will turn into stars overnight on the back of innovations. Expect funding in the sector to grow strongly with a combination of patient capital as well as a higher tolerance for failures.

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