India's largest healthcare VC HealthQuad closes second fund, raising $162 million, led by global pharma giant MSD

• HealthQuad is the largest dedicated healthcare VC fund in India
• Oversubscribed HealthQuad Fund-II will nurture innovative healthcare models in India
• The fund has already invested in seven companies including Medikabazaar, THB, Impact Guru, Stanplus, Ekincare, Qure.ai and HealthifyMe

NEW DELHI, March 31, 2022 /PRNewswire/ -- HealthQuad, India's leading healthcare venture capital fund, has announced the final close of its second fund, HealthQuad Fund-II, with a total subscription of $162 million (INR 1,215 Crores), more than 2.2 times greater than its target size at launch.

MSD, the global biopharmaceutical company, led commitments from global financial investors, strategic institutions in pharma and healthcare, development financial institutions (DFI), funds of funds and large European conglomerates. The diverse investor base includes Ackermans & van Haaren (AvH), Teachers Insurance and Annuity Association of America (TIAA), Quilvest, HCL Corporation, DFIs such as CDC, Swedfund and SIDBI and India's leading banking services company.

HealthQuad is an Indian healthcare VC fund that invests in disruptive healthcare models, typically using technology to achieve reach, scale as well as impact. It is backed by Quadria Capital, a leading healthcare focused private equity fund in Asia, and KOIS, a global pioneer in impact investing and innovative finance. Quadria and KOIS provide an ecosystem of sector knowledge, network, brand, commercial synergies and market access.

HealthQuad Fund-II is investing in 10 - 15 young private companies across high-growth segments of the healthcare sector in India, aiming to generate value as well as achieve deep social impact.

Charles-Antoine Janssen, Co-founder and Chief Investment Officer of HealthQuad, said, "The close of our second fund marks a significant step for HealthQuad as we continue to invest in one of the world's most promising healthcare markets. India's healthcare industry is compounding at ~20% growth rate and is likely to be a $372 billion industry by end of this year. The new-age innovative models are fuelling the rise of the Indian health-tech market which is growing at 25% annually and is poised to reach $21 billion by 2025.  We are energised by the vision our Global Investors (LPs) share with us of a flourishing and evolving Indian healthcare ecosystem that answers the needs of the people across all income segments while generating attractive financial returns. We have been investing in the healthcare market in India since 2016 and are grateful for the meaningful partnerships we are building with world class, path breaking entrepreneurs who emerge from India's growing pool of 8,000+ health tech companies." 

MSD's investment builds on the company's longstanding presence in India, where it reaches millions of people with its health products. 

Carmen Villar, VP Social Business Innovation at MSD, said, "At MSD we are committed to advancing health equity globally through our impact investing portfolio. Our investment in HealthQuad will contribute to a robust and sustainable healthcare ecosystem through innovative solutions in financial inclusion, patient engagement, and supply chain, in India and around the world."

To date, over $60 million of HealthQuad Fund-II has already been deployed in some of the most dynamic, high growth and disruptive companies in each of the sub segments of the healthtech ecosystem. These investments include Medikabazaar, India's largest digital platform for medical supplies and consumables, THB, the leading clinical data aggregation and intelligence platform, Stanplus, the leading tech-enabled Emergency Response System company, Ekincare, the leading tech-led corporate wellness platform, Impactguru, India's leading integrated healthcare financing platform, Qure.ai, the leading AI company focused on radiology and HealthifyMe, India's leading digital wellness company.

By 2030, India's economy and its population are forecast to become the third largest and the highest respectively in the world. India's growing burden of chronic diseases (100 million+ diabetic patients by 2030) has led to a sharp rise in demand for innovative healthcare. This is fuelled in part by severely low national healthcare spend (at ~1.3% of GDP India lags most comparable economies), as well as a lack of access and affordability. HealthQuad believes that India's large pool of talented doctors, coders and entrepreneurs positions the country as a rich ecosystem of tech-enabled and affordable healthcare services for the underserved needs of more than 500 million Indians as well as the 3 billion people in other low- and middle-income countries.

About Quadria Capital

Quadria Capital is one of Asia's leading specialist healthcare focused private equity group investing in the high growth healthcare sectors of some of the world's fastest growing economies in South Asia and Southeast Asia. To date, Quadria Capital has invested in over 27 companies in South Asia and Southeast Asia and has over USD 2.9 billion AUM.

Quadria Capital's key differentiator is its ability to leverage the deep healthcare operating experience and domain expertise of its team to drive tangible value creation at portfolio companies and help them emerge as regional industry leaders. Quadria Capital seeks to make meaningful, positive impact by increasing access to affordable, high quality healthcare to Asia's underserved populations.

About KOIS

KOIS specializes in impact finance and aims to transform projects with a high social and environmental impact into concrete investment proposals for the public and private sectors. Through its fund management and innovative financial advisory activities, KOIS deploys capital in projects with high social or environmental utility, while offering attractive returns to investors. In Europe, KOIS created the recently listed Belgian social real estate fund, Inclusio; as well as Impact Expansion, a European PE growth capital fund focused on healthcare, education & skilling and sustainability. In India, KOIS co-founded two investment funds (HealthQuad and Tara IV). KOIS' total AUM: USD430mn. KOIS is also a leader in structuring innovative financial mechanisms, including social impact bonds and development impact bonds. It structured among others the first Humanitarian Impact Bond, Refugee Impact Bond and Labour Dignity Bond in the world.