India has ranked fourth globally for healthtech investments by venture capitalists (VCs) since 2016, new data from London & Partners and Dealroom.co shows.
India has attracted $1.9 billion in funding from VCs in 2021 till date in the healthtech sector, taking total investments by VCs in the space to $4.4 billion since 2016, the data showed.
The record $1.9 billion that Indian healthtech startups have raised from VCs till date in 2021, puts India just behind the US, China and the UK. Healthtech startups in the US have attracted $31.9 billion in 2021 till date, followed by healthtech startups in China, which attracted $4.1 billion. Healthtech startups in the UK have attracted $3.8 billion in 2021 so far.
Healthtech investments by VCs in the UK have grown nine times since 2016, the data showed, with healthtech startups in the UK raising just $420 million in 2016 from VCs. Healthtech investments by VCs in India, meanwhile, have surged 10 times over the last five years. In 2016, Indian healthtech companies raised $190 million from VCs, the data showed.
The UK and India are currently among the fastest growing destinations for healthtech investments, the report said. London and Mumbai feature in the top 15 list of global hubs for healthtech VC investment, demonstrating the increasing opportunities for collaboration between the two regions, the report said.
Investments in the healthtech space in London have grown 11.1 times over the last five years, faster than New York, Boston and the Bay Area, the report said. Healthtech firms in the city have attracted $1 billion from VCs in 2021 so far. Meanwhile, healthtech firms in Mumbai, attracted $1.2 billion so far this year from VCs, growing 121 times from $100 million in 2016, the data showed.
“Cities like Mumbai and London are two of the fastest growing hubs globally for healthtech investment, suggesting there are lots of opportunities for future collaboration between the two regions. We look forward to supporting Indian healthtech companies to access London’s thriving healthtech ecosystem,” said Hemin Bharucha, Country director, India, London & Partners.
The number of major funding rounds has also increased this year, with PharmEasy raising $1.04 billion in three funding rounds and Star Health raising $164 million in an equity round, the report said. Investments by VCs in the healthtech space have grown 280% over the last five years, the data showed. Further, the coronavirus pandemic has accelerated innovation in the space, the report said.
