HealthQuad, India’s leading healthcare venture capital fund, announced the pre final close of its second fund with a total subscription of 1,134.5 Crores+ (~USD 150 million), helping it achieve over 2x of the target fund size of INR 550 Crores (USD 75 million). In view of the overwhelming demand, the Fund will exercise its green-shoe option. The Fund intends to proceed to a final close by March 2022.
The Fund has received commitments from global financial and strategic institutions including some of the global pharma and health-tech companies, development financial institutions and large European conglomerates, which validates strong and positive belief in the Fund’s investment strategy, a release said.
Charles-Antoine Janssen, Co-founder and Chief Investment Officer of HealthQuad, said, “We are delighted about the successful pre-final close of our second fund as we build on our strategy to capture the exceptional opportunity in Indian health-tech companies. The recent Covid-19 pandemic has given an impetus to the digital transformation of healthcare. This was clearly demonstrated by the fact that more than 85% of doctors used teleconsultation platforms during this period and more than 50% of doctors found digital platforms to be an effective tool for patient interactions. Pre-Covid adoption of teleconsultations by doctors was less than 10%. Teleconsultations were also well adopted by patients with overall rise in the number of teleconsults by 300%, with approximately 45% of them originating in Non-Metro cities in India. The number of E-pharmacy users increased from 3.5 million households in FY20 (pre-Covid) to more than 9 million households during Covid times. With more than 70% e-pharmacy users willing to stick to the online platforms, e-pharmacy orders are expected to reach 75million households in the next 5 years. With a rich and growing ecosystem of more than 7000 health-tech companies, India is the fastest growing destination for health-tech investments globally alongside the UK. The sector has already seen investments of more than USD 1.9 billion in 2021 with cumulative investments of more than USD 4 billion over the last 4 years. The Indian health-tech sector is expected to grow at a CAGR of more than 25% to reach a market size of USD 21 billion over the next 5 years. HealthQuad is committed to creating an ecosystem of category defining companies that improve accessibility and affordability and elevate the overall healthcare standards in India.”
HealthQuad is India’s leading health-tech fund, which uniquely taps into opportunities in technology backed disruptive healthcare models to unlock value and create deep social impact. The platform is backed by sponsors of Quadria Capital (a leading healthcare focused private equity fund in Asia) and KOIS (a global pioneer in impact investing and innovative finance), who provide a strong ecosystem of sector knowledge, network, brand, commercial synergies and market access.
To date, the Fund has investments in some of the most exciting, high growth and disruptive health-tech companies including Medikabazaar (India’s largest digital platform for medical supplies and consumables), THB (India’s leading clinical data aggregation and intelligence platform), HealthifyMe (India’s leading digital wellness company) and Impactguru (India’s leading integrated healthcare financing platform).
“If India has to fulfil its mission of ‘Healthcare for All’, it must focus on leveraging technology with a focus on preventive health. Improved health outcomes with easier access to quality healthcare infrastructure will require, 3 million additional doctors and 6 million nurses by 2030 requiring a capital investment of USD 245 billion. In a resource constrained country like India, universal healthcare access can only be achieved through the adoption of disruptive solutions. The healthcare industry needs to move beyond linear growth models and instead look at ways to disrupt the existing operating models. Disruptive technological solutions have the potential to not only vault over some of the challenges, but also helps reduce the requirement of doctors by one million and hospital beds by another million, thus saving more than USD 90 billion of capital investments” said Dr. Amit Varma, Co-founder of HealthQuad.
India is expected to be the 3rd largest economy with the largest population in the world by 2030. This rising population and a growing burden of chronic diseases (100 million+ diabetic patients by 2030) has led to an explosive growth in the demand for healthcare in the region. However, with abysmally low healthcare spend (public healthcare spend is ~1.3% of GDP), mega healthcare challenges related to accessibility, affordability and quality of care continue to exist. We believe, with its large pool of talented doctors, coders and entrepreneurs, India is best positioned to develop an ecosystem of tech-enabled affordable healthcare solutions. With the more than 560 million internet users and more 354 million smart phone users, digital literacy is rising rapidly in India. Added to this are the low data costs and the increasing number of online transactors. We believe that 175 million households will have the potential to access digital healthcare and atleast 20% of the healthcare transactions will shift to virtual mode over the next 5 years. The health-tech innovations developed in India not only solve the unmet needs of more than 700 million Indians but could also cater to more than 3.8 billion people with similar healthcare challenges, in other low and middle income countries.
Quadria Capital is one of Asia’s leading specialist healthcare focused private equity group investing in the high growth healthcare sectors of some of the world’s fastest growing economies in South Asia and Southeast Asia. To date, Quadria Capital has invested in over 25 companies in South Asia and Southeast Asia and has over USD 2.6 billion AUM.
Quadria Capital’s key differentiator is its ability to leverage the deep healthcare operating experience and domain expertise of its team to drive tangible value creation at portfolio companies and help them emerge as regional industry leaders. Quadria Capital seeks to make meaningful, positive impact by increasing access to affordable, high quality healthcare to Asia’s underserved populations.
KOIS specializes in impact finance and aims to transform projects with a high social and environmental impact into concrete investment proposals for the public and private sectors. Through its fund management and innovative financial advisory activities, KOIS deploys private and public capital in projects with high social or environmental utility, while offering attractive returns for investors. In Europe, KOIS created the recently listed Belgian social real estate fund, Inclusio; as well as Impact Expansion, a European PE growth capital fund focused on healthcare, education & skilling and sustainability. In India, KOIS manages two investment funds (Tara IV and Healthquad). KOIS is also a leader in structuring innovative financial mechanisms, including social impact bonds and development impact bonds, including the first Humanitarian Impact Bond in the world.