Investments in Indian Healthcare

Chitra Ramakrishnan

Investments, both private and government, are flowing into health care, as the industry asserts itself and has proven to be recession-resistant. The Indian government is far more receptive and lenient towards infusion of foreign capital today. This seems to have set the climate for private foreign capital.

• Bill and Melinda Gates foundation has planned to invest US $ 41 billion over a period of 5 years on Infant maternal care in India.
• GE health care is taking its health imagination into the medical devices and life sciences space and is aiming to come up with 100 new products. Its motto is to produce low cost and high quality products in emerging markets.
• Microsoft-IDG venture is into early stage funding and is proving to be a great incubating space for young technology companies.

World over, the largest segment of healthcare related venture capital investments are made by health care companies, especially in bio technology and pharmaceuticals. The motivation being strategic - these companies stand to benefit most through technological discoveries and advancements. Parent companies and their investment arms/subsidiaries are more interested in strategic partnerships and exchange of technology and processes than financial mileage. David and Goliath partnerships between start ups and established multi nationals seem to be defining the Indian health care space of late.

Funding is more forthcoming for applied technology (e.g. InstaHealth Saas), health care infrastructure (rural and urban – eg Vaatsalya, Cradle) and bio technology breakthroughs. On the whole, medical devices and health services are priority VC investments. The trend in Venture Capital investments in the life sciences space seems to be going more towards specific diseases (especially in the life style disease category) while CVC investments are more in the bio technology area.

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