Several sectors have jumped on the digital wagon…India’s healthcare industry, although late to the party, is now enjoying a digital take off too, and we’re loving it.
Despite being in its nascent stage, HealthTech has proved to be a game changer, so much so that it has won the hearts of consumers and investors alike: we’ll let the numbers tell the story, so read on as my colleague Kushal Bhatnagar, and his team, share their take on India’s emerging HealthTech sector.
1. HealthTech is addressing the gaps in India’s healthcare system, closing the digital gap, and solving problems at almost every step of the consumer healthcare journey
Restricted access to healthcare provides, large burden of healthcare expenses, and quality concerns with medicines, diagnostic labs and overall infrastructure are the main issues that the Indian healthcare system is struggling with. From providing diagnostic tests and medication to patients, to serving as an enabler of surgeries, Healthtech platforms are becoming a go-to solution for consumers. Fitness and nutrition, consultation and diagnosis, out-patient treatment, in-patient treatment, and disease management are all part of the consumer health journey, and HealthTech is addressing all of this. Led by a well-funded ecosystem, HealthTech is providing improved access, affordability, and authenticity of healthcare for Indian consumers.
2. We notice a huge headroom ahead for HealthTech’s growth indicated by the global benchmarks, wherein HealthTech players are already ahead of some of the traditional ones
India’s HealthTech sector is on an exciting journey of disruption and continues to offer immense value proposition to consumers and businesses alike.
3. HealthTech’s continuous rise in the spheres of pharma, diagnostics and consultation, together termed as eHealth by RedSeer, has been remarkable
ePharma dominated the sector, especially before COVID. In addition to creating a convenience-driven experience, ePharma was pushed through discounts and rewards. Soon enough, the COVID-induced pandemic worked as a catalyst to trigger growth within this sector, thereby paving the way for a booming eHealth landscape that saw an annual growth rate of 51% in 2021.
4. The eHealth sector continues to create delights, indicating that it could be the new normal for our healthcare industry
It’s been two years since the COVID-induced pandemic, yet, it looks like eHealth is here to stay.
5. The eHealth sector saw an improved NPS and reduced CAC: further cementing the fact that consumers are enjoying the offerings
Same-day deliveries and cross-selling further characterize the sector’s performance, leading to improved Net Promoter Score (NPS) and reduced Customer Acquisition Cost (CAC). Going ahead, players could choose distinct growth paths as there are multiple areas with high potential.
6. All this could potentially accelerate the eHealth sector to reach $9-12 Bn GMV by 2025 and ~$40 Bn GMV by 2030, with promising avenues to enhance profitability
The increasing prevalence of chronic diseases, rising healthcare expenditure, and increasing focus on preventive care are some of the key factors driving the growth of the HealthTech market in India. Additionally, this growth will be driven by increasing consumer receptiveness towards eHealth models and rising provider and supplier willingness to partner with eHealth platforms.
Over the coming months, we expect to see continued improvements in the sector, particularly in the area of digital accessibility, which will further benefit the large, underserved population that currently lacks access to these services.