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Compiled by Yojanaa Nagda

In India, the healthcare infrastructure is extremely inadequate. We all remember the dire situation of covid pandemic and it exposed how poor our health infrastructure is.  

In 2021, Healthtech startups rose to prominence as they sought to fill a gap in the industry and provide new ideas. Consumers and investors alike have become interested in online pharmacies. Fitness and wellness firms dominated the spotlight last year, thanks to increased health awareness following Covid-19. Another industry that has seen a lot of interest is healthcare at home services.

The Indian startup ecosystem ended 2021 with $42 billion in inflows, thanks to the digital economy drawing both foreign and domestic investors. Despite the Covid concern looming over the year, Healthtech received a lot of attention. According to Inc42 statistics, this sector’s businesses garnered $2.2 billion in capital across 131 deals. The Healthtech sector spawned four unicorns in 2021, signaling the sector’s maturation.

If Healthtech has so much potential then why do they get less funding compared to ecommerce or fintech? 

Well, the answer to the question is quite simple – Healthtech is considered a safe bet but returns to investors are not as high as is in the case of fintech and ecommerce sectors.

Source: Inc42

In this underdeveloped market, keen investors see promising potential. The Healthtech market in India is estimated to grow at 27% CAGR to $21.3 Bn by 2025 and enjoy a share of over 3% of the global market.

Source: Datalabs

However, the funding may not be in line with the possibilities. Healthtech startup funding:

2020 = $456 million ↓ 2019 = $546 million

Source: Inc42

Although Healthtech is a recession-proof industry, venture capitalists did not consider it a hot investment target until recently.

The gestation period is protracted, and the entire cycle is lengthier due to the nature of the business. The pandemic, on the other hand, changed everything, and in 2021, there were 3,548 active Healthtech businesses, accounting for 8.9% of the whole startup world of 39,960 enterprises.

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