Startup Watchlist: 6 Indian Healthtech Startups To Watch Out For In 2021

• In 2020, healthtech sector recorded 77 deals raising $455 Mn in funding in contrast to $512 Mn funding in 62 deals in 2019
• In 2021, the healthtech segment expects to see some big announcements in terms of mergers and acquisitions, as well as funding for the growth-stage startups
• Read to find out which startups have made it to our healthtech Startup Watchlist 2021

This article is part of the fifth edition of Inc42’s Startup Watchlist series, an annual series in which we list the top growth-stage startups to watch out every year from some of the most trending industries in the Indian startup ecosystem. Explore all the stories from the ‘Startup Watchlist’ 2021 series here.

India spends just 3.6% of GDP on healthcare – a figure much lower than other countries like the US (16.9%), Germany (11.25%), China (5%), and Russia, (5.3%). This leaves a lot of scope for the private sector to invest in healthtech startups to make healthcare affordable in the country. Unfortunately, the pandemic that should have been the trigger point for investors to make their bets by investing more in healthtech firms, had an opposite effect. 

In 2020, the healthtech segment saw a decline of 11% in the overall funding, even though the deal count increased by 24% in comparison to 2019. The healthtech sector recorded 77 deals raising $455 Mn in funding in contrast to $512 Mn funding in 62 deals in 2019, according to Inc42 Plus Annual Indian Tech Startup Report 2020.    

On the positive side, the year 2020 attracted big corporates to invest in healthtech startups. While Tata group’s talks with 1mg are yet to take a final shape, the acquisition of Netmeds by Reliance was the highlight of the year. The latter acquired 60% equity in Netmeds and 100% equity in its subsidiaries for around $85 Mn. Other startups that raised funding in 2020 include Curefit, 1mg, IVF Access, Healthpix, Phable among others. 

While Curefit raised $110 Mn in Series D funding led by Temasek Holdings, 1mg raised around $28 Mn in debt funding from existing investors as well as by offering preferential shares to Gates Foundation. Another Bengaluru-based startup Healthpix raised around $6 Mn in Series B round led by JSW ventures. 

Other positives of 2020 include the government’s decision to roll out the National Digital Health Mission and Telemedicine guidelines which helped healthtech startups to come up with online accessibility of quality treatment for both Covid and non-Covid health issues, to far flung areas. The Insurance Regulatory and Development Authority too issued a notification advising the insurers to allow telemedicine be covered under health insurance programmes. The telemedicine facility could help Indians save about $10 Bn by 2025. 

From Inc42’s Healthtech startup watchlist 2020, Bengaluru-based mfine raised $5.41 Mn in Series B funding led by Caretech Pte, 5C Network. Another Bengaluru-based healthtech startup raised $1.2 Mn in Pre-Series A funding led by Unitus Ventures.  

According to Inc42 Plus, India’s healthtech market is estimated to reach $21 Bn in 2025 on the back of telemedicine and preventive healthcare growth. Further, the report revealed that preventive healthcare in the country is expected to reach market size of $170 Bn by 2025, primarily driven by fitness and wellness apps and diagnostics solutions.

As part of the Inc42’s annual series of Startup Watchlist, here are the top 6 healthtech startups that made it to the fifth edition of Startup Watchlist 2021.

Editor’s Note: The startups listed below are in alphabetical order, and do not represent the ranking of the companies in any manner.

In India, only 1 lakh beds get monitored continuously out of 19 lakh beds which are dependent on human intervention. This leaves loopholes in the care of critically ill patients, who need constant monitoring of their vitals. Bengaluru-based Dozee aims to bridge this gap. The company offers remote patient care through its health tracking  products both at hospitals and  homes. Dozee has come up with a subscription-based model for remote healthcare at home which includes doctors’ consultations. 

Hospitals are using Dozee to continuously monitor a patient’s cardiac and respiratory cycles, and notify the care team of any abnormalities that may be detected before it becomes critical. The AI powered early prediction algorithms can help in saving lives  in 70+ cases, predicting early cases of heart failure, tuberculosis, pneumonia etc. During Covid, the company improved its tracking solutions in accordance with the varying needs. 

Cofounder and CEO Mudit Dandawate said, “We integrated certain essential components, such as pulse oximeter to our device and adopted our software layer especially for hospitals. This was followed by setting up operations in hospitals to ensure technology adoption even in government hospitals in tier 2 and tier 3 cities of India. We have also integrated our services with leading telemedicine companies and hospitals to provide continuous monitoring of critically ill patients, especially of covid-19 patients at home.” 

Dozee is being used by 4500+ users at home. The company is also working with 25+ hospitals and powering 1900+ Covid-19 beds. “We have so far monitored 7000+ covid-19 patients in hospitals, leading to 30+ patients getting timely transfer to ICUs. Due to the rise in demand, the company surpassed the last financial year’s sales in just one quarter this year.” 

Among hospitals who have installed Dozee are Indira Gandhi Government Medical College & Hospital, Government Medical College in Nagpur, Victoria Hospital and ESIC Hospital in Bengaluru.

Claiming to have recorded 5X growth in sales of its remote health monitoring devices during the pandemic in hospitals. Currently, Dozee has installed 3K+ devices in hospital beds and is monitoring 4K+ users at home.

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