[Funding alert] Healthcare venture capital HealthQuad raises $162 mn

Quadria Capital-backed HealthQuad, an India-focused healthcare venture capital firm, has raised $162 million in the final close of its second funding round.

The firm has got global pharma maker MSD (Merck & Co., Inc.) as the anchor investor for the new fund.

Healthquad co-founder and chief investment officer Charles-Antoine Janssen said the firm more than doubled the fund’s initial target, reflecting keen interest from global investors.

Financial investors and strategic institutions in pharma and healthcare, development financial institutions (DFIs), Funds of Funds and large European conglomerates have supported the fund.

The investor base includes several development financial institutions such as Ackermann & Van Haaren (AVH), Teachers Insurance and Annuity Association of America (TIAA), Quilwest, HCL Corporation and CDC, Swedfund and SIDBI.

The company has so far made seven investments totaling $60 million from new funds in companies such as Medikabazaar, THB, Impact Guru, StanPlus, Ekincare, Qure.ai and HealthifyMe.

“We expect to support a total of 10-15 companies through the new fund. In 2022, we will be investing anywhere between $100 and $140 million,” Janssen said.

It seeks to support companies in the healthtech space and will write checks ranging from $5 million to $30 million. The firm will look to launch its third fund by the end of the next calendar year when the second fund is expected to be deployed in a big way.

This company typically invests in disruptive health models, using technology to achieve reach, scale, and impact.

According to Janssen, India’s healthcare industry is growing at a growth rate of around 20% and is expected to be a $372 billion industry by the end of this year. New-age innovative models are further fueling the rise of the Indian health-tech market, which is expanding 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,” Janssen 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,” said Carmen Villar, VP Social Business Innovation at MSD.