India has a very low ratio of Doctor`s per 1000 population. Technology can be used to make the system more efficient. There are several segments of Healthtech that are attracting Venture and Angel Funding. These are Discovery
Online Appointment fixing
In-home medical care
Specialty care
Hospital Management Systems
Digitizing
Diagnostic devices
Tracking
E-commerce for Drugs and Accessories
Already Practo has become the Worlds largest health care booking platform valued at more than USD 500 million. Healthcare attracted the highest investments in First quarter of 2016 and the interest continues. There is a great overlap with Wellness and fitness Start ups as well.
EMS Response to Terrorism involving Weapons of Mass Destruction
From Health Care to HealthTech Start-Ups in India-Investor Sweet Spots
1. From Health Care to Health Tech
Disrupting the Service and Product Delivery Systems
2. Shortage of Qualified Doctors
2.452
2.809
3.889
3.19
1.95
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
USA UK Germany France Sngapore
0.702
1.891
1.491
4.309
0.68
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
India Brazil China Russia Sri Lanka
Source: D’Essence Research & http://gamapserver.who.int/gho/interactive_charts/health_workforce/PhysiciansDensity_Total/atlas.html
Developing
Countries
Developed
Countries
Physicians Density (per 1000 population) - 2013
3. Current Challenges & Opportunities
Challenges
• Population is very high, Indian healthcare sector is
vastly unorganized and unevenly distributed
• Documentation and medical history are still largely non-
existent
• Low doctor to patient ratio
• Treatment cost variations
• Lack of medical awareness
• Need for faster diagnosis and treatment
• Poor product logistics
• Imbalance and Shortages in certain Specialist classes
like Neurosurgeons, Psychiatrists
• Very Poor availability in Tier 2 and Tier 3 cities
Opportunities
Large VC / PE investors ready to pour lot of money
Source: D’Essence Research & http://www.ibef.org/industry/healthcare-india/infographic
CAGR of Health care sector 17%
4. Surge in consumer-driven healthcare start ups
The Key Segments of start-ups in the Health Tech Space are:
• Discovery
• Online Appointment fixing
• In-home medical care
• Specialty care
• Hospital Management Systems
• Digitizing
• Diagnostic devices
• Tracking
• E-commerce for Drugs and Accessories
Source: https://yourstory.com/2016/08/healthcare-startup-research-india/
No. of deals in major sectors
across Q1 FY 2016
2015 : Total Funding $277M and 57 Deals
5. List of HealthTech Start ups
Start up Product / Service
Funding
(USD mn)
Investors Year
Practo Online appointment
fixing
124 Altimeter capital, Google Capital, Sequoia capital, Matrix partners
Sofina, Tencent Holdings, Yuri Milner
2008
Lybrate Online appointment
fixing
11.43 Tiger Global Management, Nexus Venture Partners, Ratan Tata 2013
Portea In-home medical
care
46.5 Accel Partners, IFC, Qualcomm Ventures, VenturEast, 2013
Netmeds E-commerce for
Drugs and
Nutraceuticals
50 OrbiMed 2010
HealthKart E-commerce for
health & fitness
12 Intel cap, Kae cap, Sequoia cap 2011
DocEngage Digitizing Records - Start up Health 2013
MedIndia Discovery - - 2000
MedGenome Tracking – Research
of gene panels &
exomes
24 Sequoia capital, Papillon Capital LLC 2013
Source: D’Essence Research
6. Contd.
Buzz4health, a platform for doctors and medical students
Start up Product / Service
Funding
(USD
mn)
Investors Year
LiveHealth Tracking & Digitizing of Medical Reports
-
Rajaram Samant
Pramod Dhembare - Angel Investors (Individuals)
2013
Medibox
Technologies
Discovery – B2B SaaS platform with
digital network for all healthcare service
providers
- -
2014
1mg E-commerce for Drugs and Nutraceuticals 22 HBM Healthcare Investments AG, Intel cap,
Maverick cap, Omidyar cap, Sequoia cap
2012
Goqii Discovery, Specialty care, Diagnostic
devices
13.4 Cheetah Mobile, Edelweiss Financial Services,
GWC, Neeraj Arora, New Enterprise Associates,
Vijay Shekhar Sharma
2014
Attune Hospital Management Systems 16 Norwest Venture Partners, Qualcomm Incorporated,
Qualcomm Ventures
2009
Welcome Cure Discovery & treatment 6 Brand Capital 2014
Relisys Medical
Devices ltd
Cardiovascular device manufacturers 32 India Life Sciences
MapMyGenome Diagnostic: Personal Genomics company 1.12 Group of Angel investors 2012
Source: D’Essence Research
7. Why these start ups ???
CRISIL Report: By 2026, India’s population is expected to reach 1.4 billion & half of
which, would be aged 30 years or older, compared to the current 40 percent.
About 930 million Indians currently own cell phones, but have no access to clean
water.
The country has no central regulatory authority for health services, as most of the
citizens are uninsured.
In order for India to able to catch up to the ‘more developed nations,’ the country will
have to shell out about as much as $50 billion just on hospital beds.
Filling this long gap between the citizens and the healthcare facilities are the various
upcoming digital start ups.
Source: https://yourstory.com/2016/08/healthcare-startup-research-india/
Rise in Private Equity Funds in hospital
chains increased from USD 15 mn – to 25 mn
8. Start ups’ hurdles
1. Slow Growth – Any startup needs to tackle the ups and downs with patience.
E.g. Practo received their first funding after 3 years of starting
2. Regulatory issues – Concerns over misuse of technology, safety concerns on electronic prescriptions
3. Complex Industry – Healthcare industry does not give enough freedom. General association of healthcare industries is
with the government and the government levies a lot of rules and regulations.
Not so clear policies creates a lot of confusion.
4. Hard to acquire doctors – The calculated doctor-patient ratio in India is as bad as 0.702:1000 & it gets worse in rural
areas. So it becomes difficult to acquire the doctors.
5. ROI – The growth of the sector is slow which makes it hard to earn money, thus monetization plan would be trial and
error. ROI is difficult to earn at the start.
6. Less healthcare mentors – India’s health tech start ups industry need best healthcare / pharmaceutical experts on their
board
Source: D’Essence Research
9. Practo: Largest funded Health Tech start up
FIND …..CONNECT.....MEET.....GET TREATED
Founded: 2008
Funding more than USD 120 mn
3 million patients treated across India
2,00,000 health care practitioners, 10,000 hospitals, 5,000+ diagnostic centers, 15 countries
Practo Hello - Cloud telephony solution has redefined the way doctors connect with their patients
FOUNDERS: Shashank ND and Abhinav Lal
Practo: World’s largest healthcare
appointment booking platform
Valuation at $525 million
Source: D’Essence Research & http://www.dqindia.com/practo-is-the-worlds-
largest-healthcare-appointment-booking-platform-shashank-nd-founder-practo/
11. Conclusion
Technology will be a game changer in the manner in which healthcare services will be delivered in India
The private sector will be the major driving force behind technology adoption in the Indian healthcare
segment
IT solutions & Management Information System (MIS) will continue to play a major role
The convergence of healthcare with upcoming technologies such as cloud computing and wireless
technologies will play a key role in improving accessibility and meeting the challenge of manpower shortage.
Coming years are expected to witness greater use of: telemedicine, hospital information systems
(HIS)/hospital management information systems (HMIS), online or electronic medical records (EMR), etc.
Source: D’Essence Research
WHAT’S YOUR MOVE ? ? ?
12. Start up services by D’Essence
1. Validating your Business Idea
2. Enrolling Co-Founders and Start Up Team
3. Learning to Boot Strap
4. Firming up the Business Idea- Finalising
the Business Model
5. Firming up the Revenue Model
6. Meeting Potential Investors- Angels,
SeedFunds
7. Analysing Term Sheets and Accepting an
Investor`s Offer,
8. Scale Up and Execution
9. Opening Doors and Lead Generation
Funding: Fine Tuning the Vision, Mission, Goals and
Scale Up sizing and Validation of all Market and Cost
and Revenue Assumptions. Tweaking the Business
Model if required. This is a very critical element of the
Fund Raising Process.
Business plan: Business Plan and Financial
Projections for 3-5 years. Here we will also be able to
assess the Investment Requirement
Investment Package: Preparation of Investment
Package including First Look Teaser Mail, No Name
10 page deck, Detailed Investor Presentation with
Financials and Identity, NDA.
• D'Essence Consulting is a Premier Management Consulting, Growth Strategy and M&A
Advisory & firm founded in 1999
• We help our clients to capitalize on market dynamics and changing business landscapes
to build into a healthy entity ready to take on the future and unlock its market potential
www.dessenceconsulting.com
chandni@dessenceconsulting.comManagement Consulting Business Strategy M&A Advisory