The Healthtech Revolution Transforming India's Healthcare Landscape

The increasing internet penetration and smartphone usage in rural India have created an untapped market for healthtech solutions, improving accessibility and healthcare delivery.

India's healthcare sector has undergone a significant transformation, driven by the rapid adoption of digital health technologies. This health tech revolution is reshaping how healthcare is delivered, making it more accessible, efficient, and patient-centric. We spoke to Abhimanyu Roy, Executive Director, Avalon Consulting to understand several factors that have contributed to the growth of health-tech startups and the widespread adoption of digital health solutions in India.

Growth Drivers for the Indian Healthtech Market

Covid-19 Pandemic: The COVID-19 pandemic played a pivotal role in accelerating the adoption of health tech in India. It highlighted the need for remote healthcare solutions, especially in rural areas where access to healthcare facilities was limited. Telemedicine saw a substantial increase in adoption during the pandemic and continues to be a viable option for patients.

Rise in Internet Access: Rural India witnessed a significant increase in internet penetration, reaching approximately 14% growth in 2022-23. With a rising number of smartphone users and improved internet access, rural areas have become a largely untapped market for healthtech solutions.

Rise in Chronic Diseases: Lifestyle-related chronic diseases such as diabetes, hypertension, and heart disease are on the rise in India. These conditions require continuous monitoring, making advanced health tech services that enable remote tracking and management a valuable solution.

Government Initiatives: The Indian government has allocated substantial funds to support startups in the health tech space. For instance, the Startup India Seed Fund Scheme received a budget of Rs 283.5 crore, encouraging innovation in this sector.

Subsegments of the Healthtech Market

The health tech market in India comprises various subsegments, each addressing specific healthcare needs:

Telemedicine: Platforms like Practo and Lybrate offer online medical consultations and appointment services, making healthcare more accessible.

Fitness & Wellness: Apps like Cultfit and HealthifyMe provide fitness and wellness services, including gym subscriptions, mental health counseling, and personalized meal plans.

E-Pharmacy: Companies like 1MG, Netmeds, and Pharmeasy offer online sales and doorstep delivery of medicines and medical equipment.

Home & Personal Healthcare: Care24, Portea, and Stasis bring healthcare to patients' homes, offering nursing, lab tests, doctor consultations, and remote patient monitoring.

Point of Care: Companies like Cipla are developing point-of-care testing devices that enable quick diagnostic tests.

IT & Analytics: Innovacer, Qure.ai, Medikabazaar, DocPrime, and Digit provide software-as-a-service (SaaS) solutions for healthcare organizations, facilitating better analysis, diagnostics, procurement, and insurance.

Funding Scenario

India is witnessing significant investment in the health tech sector, with over 4,800 startups valued at $2 billion. In 2020, 52 healthtech startups received funding exceeding $500 million. India ranks fourth globally for private venture capital investments in healthtech since 2016, attracting over $4.4 billion in the past five years.

The healthtech revolution is paradigm shifting in India's healthcare landscape. Factors such as increased smartphone penetration, government support, rising lifestyle diseases, and a growing middle-class population are driving the growth of healthtech startups. As technology continues to empower patients and healthcare providers, India is well-positioned to become a leader in the global healthtech revolution.

Abhimanyu Roy, Executive Director, Avalon Consulting