SMEpost

Health care start-ups see low levels of funding: KPMG

The Indian health care sector is expected to be worth $280 billion by 2020 and has been growing at a compound annual growth rate of 16% since 2011. The health care workforce required in India is likely to double to 7.4 mn by 2022 from 3.6 mn in 2013.

India received $288,634 mn aggregate foreign direct investment between April 2000 &  March 2016. During this period, the pharma sector got $13,850 mn, while hospitals and diagnostic centres were recipients to $3,592 mn, and medical and surgical appliances got $1,097 mn (about 4.8%, 1.3% and 0.4% of the total FDI, respectively). The country needs about 600,000-700,000 extra beds over the next five-six years, indicative of an investment opportunity of $25-30 bn.

The health care and lifesciences sector (HCLS) emerged among the top five recipients of PE-VC investments in India in 2015. Health care start-ups in India received $27 million in the first four months of 2016. During the period 2009-2016 (till April), the sector received cumulative investments of $338 mn. Total investments received by these start-ups over the past eight years is only one-fifth of the PE-VC funding received by the sector in 2015, highlighting the lack of funding

Source: Business-Standard