India’s largest healthcare VC HealthQuad has closed its second fund at $162 million. Global pharma company MSD led the fundraising.
HealthQuad, India’s top healthcare venture capital fund, has announced the full close of its second fund, HealthQuad Fund-II, with a total subscription of $162 million (INR 1,215 crores), more than 2.2 times the fund’s initial target size.
MSD, the worldwide biopharmaceutical firm, led pledges from global financial investors, pharmaceutical and healthcare strategic institutions, development finance institutions (DFI), funds of funds, and significant European conglomerates.
Ackermans & van Haaren (AvH), Teachers Insurance and Annuity Association of America (TIAA), Quilvest, HCL Corporation, DFIs such as CDC, Swedfund, and SIDBI, and India’s top financial services provider are among the various investors.
HealthQuad is an Indian healthcare venture capital firm that invests in transformative healthcare models that often leverage technology to gain reach, scalability, and impact.
Quadria Capital, Asia’s top healthcare-focused private equity firm, and KOIS, a global pioneer in impact investment and innovative finance, are both investors. Quadria and KOIS provide a sector knowledge, network, brand, commercial synergies, and market access ecosystem.
HealthQuad Fund-II invests in 10 – 15 emerging private companies in India’s high-growth healthcare sector, with the goal of creating value while also having a significant social effect.
Charles-Antoine Janssen, Co-founder and Chief Investment Officer of HealthQuad, stated, “The closure of our second fund marks a significant step for HealthQuad as we continue to invest in one of the world’s most promising healthcare industries. The healthcare industry in India is growing at a rate of 20% per year and is expected to be worth $372 billion by the end of this year. The growth of new-age inventive models is fueling the rise of the Indian health-tech business, which is developing at a rate of 25% per year and is expected to reach $21 billion by 2025.
We are inspired by the vision that our Global Investors (LPs) share of a healthy and developing Indian healthcare ecosystem that meets the needs of people of all socioeconomic levels while creating good financial returns. We’ve been investing in India’s healthcare industry since 2016 and are grateful for the important collaborations we’re forming with world-class, trailblazing entrepreneurs emerging from the country’s burgeoning pool of 8,000+ health tech startups.”
MSD’s investment expands on the company’s long-standing business in India, where its health products reach millions of people.
Carmen Villar, VP Social Business Innovation, added, “At MSD, we are committed to promoting health equity internationally through our impact investment portfolio. Our investment in HealthQuad will help to build a strong and sustainable healthcare ecosystem in India and around the world by providing innovative solutions in financial inclusion, patient engagement, and supply chain.”
Over $60 million of HealthQuad Fund-II capital has already been deployed in some of the most active, high-growth, and disruptive companies in each of the healthtech ecosystem’s sub-segments. These investments include Medikabazaar, India’s largest digital platform for medical supplies and consumables, THB, the leading clinical data aggregation and intelligence platform, Stanplus, the leading tech-enabled Emergency Response System company, Ekincare, India’s leading tech-led corporate wellness platform, Impactguru, India’s leading integrated healthcare financing platform, Qure.ai, India’s leading AI company focused on radiology, and HealthifyMe, India’s leading digital health platform.
By 2030, India’s economy and population are expected to be the world’s third and fourth largest, respectively.
The growing burden of chronic diseases in India (100 million+ diabetic people by 2030) has resulted in a surge in demand for innovative healthcare. This is fueled in part by India’s very low national healthcare spending (1.3 percent of GDP), as well as a lack of availability and cost.
According to HealthQuad, India’s large pool of talented doctors, coders, and entrepreneurs positions the country as a rich ecosystem of tech-enabled and affordable healthcare services for the underserved needs of more than 500 million Indians, as well as the 3 billion people in other low- and middle-income countries.