India’s healthtech sector, once expected to hit $21 Bn by 2025, has seen mixed fortunes since the pandemic. Despite a surge in tech adoption across sectors during COVID-19, the healthtech space has struggled to attract consistent investor interest.
According to Inc42, healthtech startups raised just over $7 Bn across 886 deals between 2014 and mid-2024, a small fraction of the $150 Bn raised by Indian startups across 10,500 deals during the same period.
While the pandemic initially sparked a funding boom, healthtech investments jumped 4.8x from $456 Mn in 2020 to $2.19 Bn in 2021, funding levels have steadily declined since, with many startups shutting down. Major players like PharmEasy have also faced valuation cuts, while others like Kenko Health, Nintee, ConnectedH have closed operations despite raising significant capital.
However, recent funding trends suggest a potential revival, with a significant increase in investments during the first half of 2024. Government initiatives like the National Health Stack (Ayushman Bharat), aims to create a supportive ecosystem similar to UPI’s impact on fintech.
Industry experts remain optimistic, anticipating further growth spurred by scalable healthtech startups, improved infrastructure and supportive environment.
