Tracxn’s HealthTech India Report discloses a 55% YoY drop in funding within the sector, with total investments reaching $1.4 billion in 2022. The primary cause for this decline is a substantial 75% reduction in late-stage investments, which decreased from $2.4 billion in 2021 to $606 million in 2022.
In 2022, seed-stage funding experienced a 52% YoY decline, amounting to $75.2 million, while early-stage funding saw a 26% YoY growth, totaling $743 million. Notably, the first half of 2022 was responsible for 70.3% of the total funds raised.
Although funding has been on a downward trend since Q4 of 2021, the HealthTech sector is poised for renewed growth, fueled by increased digital adoption, supportive government policies, and technology advancements in areas like AI, robotics, cloud computing, data analytics, and IoT. Despite the considerable decrease in investments, 2022 ranks as the second-highest funded year in the past decade, after 2021, owing to the growing awareness of health and the increased usage of digital health services.