According to Tracxn’s HealthTech India Report, the sector experienced a 55% YoY dip in funding, amounting to $1.4 billion in 2022. The significant decline is attributed to a 75% reduction in late-stage investments, which fell from $2.4 billion in 2021 to $606 million in 2022.
While seed-stage funding dropped by 52% YoY to $75.2 million, early-stage funding grew by 26% YoY, totaling $743 million in 2022. A notable 70.3% of the total funds raised in 2022 were recorded during the first half of the year.
Even though funding has been on a downward trajectory since Q4 of 2021, the HealthTech sector is expected to rebound due to increased digital adoption, supportive government policies, and technological advancements in areas like AI, robotics, cloud computing, data analytics, and IoT. Despite the funding decline, 2022 still ranks as the second-highest funded year in the past decade, after 2021, fueled by growing health awareness and a surge in digital health services usage.