Indian healthcare segment has registered 88 funding deals amounting to $397.41 million during January-September 2016. VCCEdge Indian Healthcare Sector Funding Insights report stated that 54 Angel/seed deals worth $11.19 million, 23 venture capital funding deals worth $155.83 million and 11 private equity deals amounting to $230.39 million so far in 2016. Compared to the last two years, the sector had garnered $1,342 million and $1, 458 million across 124 and 144 deals in 2014 and 2015.

While the overall numbers for 2016 YTD are down compared to 2015, mirroring funding trends across sectors, the Angel/Seed and Venture capital funding deal values for 2016 YTD are at par and even surpass those of 2014.

Healthcare startups have registered 73 funding deals amounting to $113.45 million. The highest numbers in healthcare start-up funding were at 97 deals worth $289 million during 2015 while 2014 had 73 deals to the tune of $109 million. The healthcare space received funding wroth $735 million from 336 deals since 2012.

Sharing the Indian Healthcare Sector Investment Outlook for 2016 and beyond, Nita Kapoor, Head – India New Ventures, News Corp and CEO, News Corp VCCircle said, “Startups and investors alike see a huge opportunity in the demand and supply gap that exists in the Indian healthcare sector both as social cause and a business case. While startups with consumer centric business models and digital modes of service delivery  such as facilitating doctor appointments, efficient information management system and online pharmacies have been attracting investor interest, trends suggest that we will see money backing those startups focusing on corporate tie-ups, medtech, virtual diagnostics & preventive care.” She added, “The increase in the share of startup funding in the overall healthcare investment pie from the range of under 8 to 20% in the past to about 29% in 2016 so far is a telltale sign of the prospects of more investments in the sector.”

There were 13 Series A funding deals worth $45.33 million and 6 Series B deals worth $56.92 million in 2016 YTD. Start-ups with consumer centric digital modes of service delivery have raked in $77.3 million and $160 million in 2016 YTD and 2015 respectively.

During 2016, eHelath players like online pharmacies and aggregator portals topped in terms of deal volume with 35 deals worth $50.96 million. eHealth lead the deals activity in 2015 with 40 deals worth $70.54 million. In terms of deal value, healthcare facilities ($110.9 million from 9 deals), biotech ($98.67 million from 4 deals) and healthcare Services ($73.51 million from 20 deals) are the leading segments this year when compared to pharmaceutical production in 2015 which cornered $ 759.57 million worth of investments from 14 deals (down to 3 deals worth $54.58 million in 2016).

Biotechnology was the segment which attracted the top Private Equity and Venture Capital deals so far in 2016 with Quadria Capital’s investment of $70.27 million in Concord Biotech Ltd and the $27.4 million venture capital investment made by Tata Capital Innovations Fund, Sands Capital Management LLC, Sequoia Capital India Advisors Pvt. Ltd., Accel India Venture Fund II LP, and RA Capital Management LLC in Mitra Biotech Pvt. Ltd.

Other top private equity deals during the year were in the healthcare facilities and services space such as that of ADV Opportunities Fund I LP investing $ 45 million in Dr Agarwal's Health Care Ltd and TPG Growth Equity III LP investing $ 33 million in Cancer Treatment Services International Inc.