New Delhi, July 30 -- Healthcare-focused venture capital firm W Health Ventures is betting big on India's growing demand for high-quality, patient-centric healthcare services with the rollout of its second fund that has a corpus of $100 million (Rs 874 crore).
While its first fund focused on single-specialty care delivery platforms, the second one will build on that strategy by investing in startups that offer AI-enabled B2B healthcare services supporting US-based healthcare firms, W Health Ventures said.
The firm, which has offices in Delhi, Mumbai, Bengaluru, and Boston, said the second fund has a target corpus of $70 million, with a greenshoe option of $30 million. Over the next four years, it will build a portfolio of 8-10 companies, it added.
Notably, the firm has already begun deploying capital from the second fund, with investments in companies like cancer care provider EverHope Oncology.
With the new fund, the firm aims to overcome India's healthcare sector challenges, such as regulatory hurdles and slow adoption. It will provide startup infrastructure, an entrepreneurial platform team, and strategic capital at the incubation stage through its venture studio 2070 Health..
In May, managing partner Pankaj Jethwani had told VCCircle about the firm's dual track "found and fund" investment strategy, which involves identifying promising startups and incubating them through 2070 Health. The second fund will focus on oncology, longevity, and AI-led healthcare services in the India-US corridor, Jethwani had said. The fund will emphasize larger cheque sizes and a shift to a multi-LP structure.
In a statement, Jethwani said, "Over the past five years, we have built the infrastructure to identify white spaces, partner with exceptional founders, and accelerate their journey through proven playbooks, anchor customers, and a seasoned platform team,".
Till date, W Health has invested in 12 companies across India and the US. From Fund I, it deployed over $60 million, investing in companies like chronic pain management clinic chain Nivaan, parenting platform Mylo, diabetes management platform BeatO, paediatric platform BabyMD, and cross-border companies like mental health services startup Wysa and healthtech firm Reveal HealthTech.
India's healthcare sector has been expanding rapidly. Valued at over $370 billion in 2023, the market is projected to exceed $600 billion by 2026. The growth is driven by increasing demand for specialized services across hospitals, medical devices, telemedicine, clinical trials, insurance, and diagnostic equipment, as well as rising investments from corporate hospital chains and private equity-backed players.
Published by HT Digital Content Services with permission from VC Circle.