Healthcare Private Equity Investment in the Indian Market

Healthcare private equity investment in India has been growing rapidly over the last few years. It is expected to continue its growth trajectory in the coming years.

The Indian healthcare sector is expected to record a three-fold rise, growing at a CAGR of 22% between 2016–2022 to reach US$ 372 billion in 2022 from US$ 110 billion in 2016.

The healthcare sector is one of the fastest growing sectors in India. This article will provide an overview of the current state of healthcare private equity investment in India.

Introduction

There are several reasons why the Indian healthcare industry is attractive to private equity investors.

·         First, the market size is large. According to the World Bank, the country’s population was 1.3 billion as of 2015. This makes the Indian healthcare market one of the largest in the world.

·         Second, the government provides universal coverage through a network of state-run hospitals and clinics.

·         Third, India’s demographics make it an attractive market for life sciences companies.

·         Finally, the country’s economy is growing at a rapid pace.

The Current Landscape

There was a flurry of mergers and acquisitions (M&As) in the healthcare and pharmaceutical sectors in the first half of this calendar year, reaching a record high and crossing the $3.35 billion mark in 2021. VCCEdge reported that the value of M&A deals in the sector reached $4.32 billion from January to June, compared to $2.02 billion a year earlier. During the period, 53 M&A deals were closed, up from 47 each in the first and second halves of last year.

The Future Outlook

There are several reasons why healthcare private equity investments in India are expected to grow.

·         India’s population is increasing at an alarming rate. This means that demand for medical services will also increase.

·         The government is making efforts to improve access to healthcare.

·         The country’s economy is improving.

·         India’s GDP per capita is rising.

·         The country’ ‘s healthcare system is becoming increasingly efficient.

·         India’s healthcare infrastructure is being improved.

·         The healthcare industry is becoming more competitive.

Quadria Capital is an independent healthcare focused private equity firm operating across the Asia-Pacific region. They focus on partnering with promising regional healthcare companies and, with their active investment strategy, help them grow into regional leaders, while creating and delivering outstanding returns to their investors.

Quadria complements its investment objective with a progressive private equity investment philosophy of creating positive impact on environment, society and governance. Their aim is to improve lives by bringing better healthcare for all. This comes from their belief that positive investment returns and constructive social and financial impact must go hand-in-hand. They do this by leveraging their talented team and dynamic capital to help companies achieve their full potential.