The innovation-led plans of startups in the healthcare and health-tech space have received a major boost. Regarded as a ‘’stable sector’’ that is relatively immune to market fluctuations and being at the crux of disruptions and differentiated offerings, healthcare has off late witnessed a keen interest from investors.
Bengaluru-based Axio Biosolutions, whose flagship product Axiostat is a patented emergency haemostat for trauma care and helps prevents deaths due to haemorrhage and grievous injuries, recently raised $ 7.4 million in a series B round of funding led by Ratan Tata’s RNT Capital, along with its existing investors such as Accel Partners and IDG Ventures India. eKincare, which is an integrated healthcare benefits platform driven by artificial intelligence (AI), secured a funding of $1.5 million from a whole host of investors including Ventureast, Touchstone Equities, Endiya Partners, etc. Meanwhile, online medical consultation platform DocsApp raised $7.2 million from investors including Bessemer Venture Partners, Techmatrix Corporation and DeNa Networks.
These investments speak of a newfound interest in the sector from the investor community, say entrepreneurs. With the Indian healthcare industry predicted to touch $ 280 billion by 2020, with a compounded annual growth of 16 percent (as per a report by Ficci-KPMG), investors are finding a sound avenue to lay their bet on.
Barath Shankar Subramanian, principal, Accel Partners, says, “We invest in disruptive and innovative companies that build products keeping the Indian consumer in mind while having global ambitions.”
According to Girish Shivani, executive director and fund manager, Your Nest, several healthcare providers (Max, Dabur Family Office, etc.) are turning venture capitalists and “so there is the direct flow of money towards this sector.” Your Nest recently invested in SeeDoc, a video medicine platform that is virtualising the OPD for end consumers.
Leveraging technologies such as AI, cloud, IoT, Big Data and machine learning, start-ups are innovating products and services in niche fields such as diagnostics, medical devices, wound care, online consulting, and medicine delivery which carry the potential to prevent and treat various ailments. There also exists a new group of budding but aggressive startups that look to resolve problems such as faecal incontinence, provide non-invasive and radiation-free cancer-screening solutions, and are making inroads in areas such as paediatrics, eye care, and emergency services. They seek to bridge the wide gap that currently exists between doctors, paramedics and patients, especially people living in semi-urban and rural areas by creating a sound, integrated healthcare ecosystem with a seamless delivery mechanism.
Axio Biosolutions’ lead product stops uncontrolled bleeding during injuries, while eKincare’s AI-powered solution reads medical data from health records, predicts health risks and provides timely recommendations. According to Kiran Kalakuntla, founder & CEO, eKincare, they have defined and established the need for an enterprise-level platform that delivers an unparalleled personalised experience for corporates, employees and consumers at large and help them achieve optimal health.
Experts say these are novel areas in healthcare holding tremendous growth potential. Says Ranjith Menon, executive director, IDG Ventures India, “The medical devices market in India is at a fairly nascent stage, especially in the startup sector. The Axio team has cemented some strategic partnerships and will continue to lead the wound care management space through technology innovations.’’
However, despite the multiple positives, challenges do exist for the sector. According to Shivani, while there will be emerging products/services, only those with a strong product/technology and a strong brand will continue to thrive.
“Sustenance of business efficient discoveries has always been a challenge the sector has faced. Scaling and maintaining quality is also another challenge in any product/services oriented startup and more so in healthcare where the solutions are critical to life and thus, even more demanding. A startup without sustainable differentiation will find it difficult to scale up,” says Shivani.
A HEALTHY BET
- The Indian healthcare industry may touch $280 billion by 2020, says a Ficci-KPMG report
- Firms leverage technology to innovate niche products holding growth potential
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