According to a report, 2020 was a record year for private equity investment in the healthcare and life sciences segment. Pharmaceuticals accounted for a majority of the $2.5 billion invested in this sector. There are several factors behind this outstanding influx of investments in Indian healthcare. For one, the size of the opportunity is enormous: India’s healthcare industry is expected to reach over $372 billion by 2022. Much of India’s primary healthcare remains unorganized, which presents opportunities across the board.

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Indian Healthcare Riding Strong
on High Value Private Equity
Investment

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Global mergers and acquisitions (M&A) activity
declined to a three-year low in 2020, as
companies fought with the financial fallout of
the COVID-19 pandemic, even as deal-making
came roaring back in the second half.
The value of M&A globally dropped 5% year-on-
year to $3.6 trillion, the lowest since 2017,
according to a recent report. Despite such global
fluctuations, however, the environment in India
remains positively strong, with healthcare
positioned as a clear bright spot for investors.

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According to a report, 2020 was a record year
for private equity investment in the healthcare
and life sciences segment. Pharmaceuticals
accounted for a majority of the $2.5 billion
invested in this sector. There are several factors
behind this outstanding influx of investments in
Indian healthcare. For one, the size of the
opportunity is enormous: India’s healthcare
industry is expected to reach over $372 billion
by 2022. Much of India’s primary healthcare
remains unorganized, which presents
opportunities across the board.
The rise of India’s middle class, willing and able
to afford better healthcare will continue to drive
demand upwards for improved health services,
particularly in the larger cities. But it might take
some time for consumers to shift from their
trusted family doctors to branded hospital
chains.

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The investment-friendly environment in India,
with no caps to FDI in healthcare, also allows for
opportunities for acquisitions. This has been a
popular approach with growing buyouts of
smaller healthcare players.
Favorable demographics, rapid growth
prospects, and medical tourism are also
contributing factors for attracting investment.
Areas of healthcare that is likely to see future PE
investments include Innovation via new
healthcare delivery models, single-specialty
clinics and daycare hospital models; cross-
border collaborations; distribution
infrastructure and delivery models; and
manufacturing.

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India is experiencing a growing shortage of
government-run hospitals, doctors, and
equipment. Private investment is essential to fill
in the gaps. The country has the potential to
become the ‘hospital ‘for the world by providing
world-class healthcare to the global community.
However, the government needs to develop a
comprehensive healthcare policy, keeping in
mind that the small clinics and nursing homes
are the backbones of the country’s primary and
secondary healthcare.

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Contact Us
Private Equity Investment by Quadria Capital
India
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Lado Sarai, Mehrauli
New Delhi - 110030
Phone: +91-11-49539900
Singapore
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Singapore - 068730
Phone: +65 6805 9699
Email: operations@quadriacapital.com
Website: www.quadriacapital.com
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