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PE-VC investments into healthcare and related sectors grow 63% in Jan-Sept, 2021
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Gireesh Babu, New Delhi
October 25 , 2021
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The Private Equity-Venture Capital (PE-VC) investments in the healthcare and related sector has seen a growth of around 64 per cent in the first nine months of 2021, till September 30, in terms of value. The growth was backed by a few major deals in e-pharmacy, healthtech and hospitals and clinics.
According to data from Venture Intelligence, a leading source of data and analysis on private company financials, transactions and their valuations, the first nine months of the calendar year saw 97 investments valued at around $4.24 billion as compared to 88 deals with a cumulative value of $2.59 billion during the nine months last year. In terms of number of deals, the growth was around 10 per cent.
Interestingly, the value-wise investment into the sector in the first nine months of 2021 has surpassed the value of investment made by PE-VC firms into the sector in the entire 12 months of 2020. In 2020, the overall PE-VC deal in the sector was around $ 3.05 billion in 110 deals.
The investment growth was led by e-pharmacy segment, which saw jump to $1.06 billion in 11 deals in the nine months ended September, 2021, thanks to some of the major deals including the PharmEasy fund raising among others, as compared to $71 million investment in three deals during the same period in the year 2020.
PharmEasy attracted close to $850 million in two deals during 2021, including a $350 million investment from Think Investments Prosus Ventures and others in April 2021 and another $500 million from Think Investments and others in July 2021.
The other top deals during the nine months include $398 million investment by CPIIB, Multiples PE and others into Zydus AHL, $329 million investment from Goldman Sachs into the CRO Aragen Life Sciences in May, 2021 and NIIF’s $283 million investment into Manipal Health Enterprises in March, this year, according to the Venture Intelligence data.
Hospitals and clinics attracted $603 million 12 deals during the nine months as compared to $224 million seven deals during the corresponding period last year. Healthtech saw 30 investments worth $337 million compared to 23 deals worth $ 204 million during the comparable period.
Pharma and active pharmaceutical ingredients (API) sector, on the other hand, has seen a slightly lower interest from PE-VC investors during the period, as it has attracted only $1.37 billion during the period in 11 deals compared to $1.47 billion in 13 deals during the same period of previous year. However, the sector remains the highest in terms of the amount of funding from the PE-VC sector, followed by e-pharmacy and hospitals and clinics.
Medtech industry saw seven deals worth $124 million compared to 11 deals worth $46 million during nine months last year. Biotech sector, however, attracted seven deals worth $109 million compared to eight deals worth $190 million last year.
Healthcare B2B software including Software as a Service (SaaS) also saw a growth in terms of value of investments, with nine deals worth $162 million during nine months ended September, 2021, as against 13 deals worth $109 million in the same period last year.
During the three months ended September 30, the investments grew by 25 per cent in terms of value, at $1.14 billion in 33 deals compared to $917 million in 23 deals in the corresponding three months last year.
The investments during the three months ended September 30, 2021, include three deals worth $504 million into e-pharmacy; two deals worth $224 million into pharma and API products; 14 deals worth $201 million into Healthtech; five deals worth $101 million into Medtech segments. During the same three months last year, pharma and API products attracted the highest investment at $567 million in four deals, according to the data.
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