HealthQuad closes HealthQuad Fund-II with total subscription of $162 million
India’s healthcare venture capital (VC) fund HealthQuad has announced the final close of its HealthQuad Fund-II led by global pharma giant MSD. It is a second fund more than 2.2 times greater than its target size at launch with a total subscription of $162 million (Rs 1,215 Crores). Backed by Quadria Capital and KOIS, HealthQuad is an Indian healthcare VC fund that invests in disruptive healthcare models with the use of technology to achieve reach, scale and impact.
Quadria Capital is a leading healthcare focused private equity fund in Asia and KOIS is a global pioneer in impact investing and innovative finance. HealthQuad Fund-II aims to generate value as well as achieve deep social impact by investing in 10 to 15 young private companies across high-growth segments of the healthcare sector in India.
The diverse investor base includes Ackermans & van Haaren (AvH), Teachers Insurance and Annuity Association of America (TIAA), Quilvest, HCL Corporation, DFIs such as CDC, Swedfund and Small Industries Development Bank of India (SIDBI).
Charles-Antoine Janssen, Co-founder and Chief Investment Officer of HealthQuad said, “The close of our second fund marks a significant step for HealthQuad as we continue to invest in one of the world’s most promising healthcare markets. India’s healthcare industry is compounding at a 20% growth rate and is likely to be a $372 billion industry by the end of this year. The new-age innovative models are fuelling the rise of the Indian health-tech market which is growing at 25% annually and is poised to reach $21 billion by 2025.”
“We are energised by the vision our Global Investors (LPs) share with us of a flourishing and evolving Indian healthcare ecosystem that answers the needs of the people across all income segments while generating attractive financial returns. We have been investing in the healthcare market in India since 2016 and are grateful for the meaningful partnerships we are building with world class, path breaking entrepreneurs who emerge from India’s growing pool of 8,000+ health tech companies,” he added.
MSD’s investment builds on the company’s longstanding presence in India, where it reaches millions of people with its health products. Carmen Villar, VP Social Business Innovation at MSD said: “At MSD we are committed to advancing health equity globally through our impact investing portfolio. Our investment in HealthQuad will contribute to a robust and sustainable healthcare ecosystem through innovative solutions in financial inclusion, patient engagement, and supply chain, in India and around the world”
To date, over $60 million of HealthQuad Fund-II has already been deployed in some of the most dynamic, high growth and disruptive companies in each of the sub segments of the healthtech ecosystem.
These investments include Medikabazaar, India’s digital platform for medical supplies and consumables, THB, the clinical data aggregation and intelligence platform, Stanplus, the tech-enabled Emergency Response System company, Ekincare, the tech-led corporate wellness platform, Impactguru, India’s integrated healthcare financing platform, Qure.ai, the AI company focused on radiology and HealthifyMe, India’s digital wellness company.
By 2030, India’s economy and its population are forecast to become the third largest and the highest respectively in the world. India’s growing burden of chronic diseases (100 million+ diabetic patients by 2030) has led to a sharp rise in demand for innovative healthcare. This is fuelled in part by severely low national healthcare spend (at 1.3% of GDP India lags most comparable economies), as well as a lack of access and affordability.