HealthXCapital’s team joins Jungle Ventures | GVS
HealthXCapital has partnered with Jungle Ventures to make investments in healthcare startups based in Southeast Asia and India.
The group behind HealthXCapital, a firm that put money into and aided the development of healthcare technology startups, has recently collaborated with Jungle Ventures, a company based in Singapore. Seemant Jauhari, who headed HealthXCapital for the previous eight years, is now a partner at Jungle Ventures and will concentrate on funding healthcare startups in Southeast Asia and India.
HealthXCapital boasts an exceptional collection of companies under its belt, such as RED.Health, Homage, Medfin, and THB. However, the company has already utilized all the funds from its initial investment and will not be making any additional investments in the future. Under its new partnership with Jungle Ventures, Jauhari intends to replicate the successful approach he employed at HealthXCapital. This involves collaborating with key players in the healthcare industry, such as providers, distributors, and IT system integrators, to assist startups in validating and commercializing their offerings.
Jauhari pointed out the substantial chance for digital medical care and fresh business strategies to enhance healthcare availability in India and Southeast Asia. Though these areas house roughly 30% of the world's population, merely 4% of the gross domestic product is dedicated to healthcare. This market, which lacks sufficient services, offers tremendous possibilities for innovation and expansion.
Jungle Ventures has a history of collaborating closely with healthcare startups to assist them in growing. Jauhari provided an instance of how Jungle Ventures aided one of its invested companies in expanding from five to 12 cities. It was essential to secure supplies from providers to meet the rising demand, so Jungle's board partners partnered with the startup to develop a plan with set time limits at the group level. Taking advantage of their strategic connections, they facilitated important partnerships with healthcare providers. Furthermore, an operational associate aided the startup in optimizing its financial performance, leading to almost 20% to 25% improvement in profit margins.
Jauhari also pointed out important developments occurring in Asian health technology. He discussed the widespread usage of digital platforms in countries such as India, Singapore, Indonesia, and Vietnam. Additionally, he noted that specialty care is expanding by adopting a "phygital" strategy, which merges physical clinics with online platforms. This blended model enables healthcare providers to provide convenience and easy access to patients while still retaining the advantages of face-to-face treatment.
According to Jauhari, valuations in the healthcare industry have not been a big worry because the sector has traditionally lacked funding, particularly during the growth stages of startups. He emphasized that out of the 2000+ healthcare startups in India and Southeast Asia in the last five years, fewer than 10% have advanced to the growth stage with venture capital. Furthermore, less than 20% of the overall investment in the region has gone towards supporting these growing startups. This lack of funding presents a great chance for investors like Jungle Ventures to back and invest in viable and expandable healthcare businesses.
In summary, the collaboration between HealthXCapital and Jungle Ventures represents a significant advancement in providing assistance to healthcare startups in Southeast Asia and India. With Jauhari's knowledge and Jungle Ventures' extensive connections, these startups will be able to access the essential resources and partnerships needed to succeed in a market that lacks sufficient support. The rise of digital platforms and the combination of physical and digital approaches in Asian health technology further emphasize the possibility for creativity and expansion in the area. By resolving the issue of insufficient funding in the healthcare industry, investors such as Jungle Ventures can ensure steady value growth and contribute to the establishment of sustainable healthcare enterprises.
