HealthTech funding takes a tumble, Tracxn reports 55% decline in 2022
Tracxn’s HealthTech India Report highlights a significant 55% YoY reduction in funding for the sector, with total investments dropping to $1.4 billion in 2022. A 75% decline in late-stage investments, from $2.4 billion in 2021 to $606 million in 2022, contributes majorly to this decrease.
The year 2022 saw seed-stage funding plummet by 52% YoY to $75.2 million, while early-stage funding bucked the trend with a 26% YoY increase, reaching $743 million. A significant 70.3% of the total funds raised in 2022 were recorded in the first half of the year.
Despite a downturn in funding since Q4 of 2021, the HealthTech sector is poised for growth due to increased digital adoption, supportive government policies, and technology advancements in AI, robotics, cloud computing, data analytics, and IoT. Although investments took a hit in 2022, it remains the second-highest funded year in the past decade, following 2021, driven by a heightened focus on health and increased usage of digital health services.