START-UPS Indian health tech start-ups: Game changers of the health sector

Sudhanshu Mittal,Head & Director Technical Solutions,NASSCOM CoE IoT& AI explains how health tech start-ups have become saviours in disguise

The post-pandemic era is the beginning of a multi-year opportunity rather than a bubble, for many industries, including the health sector. Events of the recent past have exposed the inadequacies of the world’s healthcare systems, and these have profound implications for health, economic progress, faith in governing system, and social cohesion, alike. Clearly, the need for a robust healthcare system empowered with digital health solutions is at an inflection point, creating opportunity for tech-enabled start-ups that are looking to change the face of India's vast infrastructure and investmenthungry healthcare industry with their innovative solutions.

Healing the health of the nation

The demand for tech-enabled and digitally-focused healthcare is growing, and taking cue, the Indian healthcare sector is rapidly evolving to serve and survive. From affordable insurance, easy access to doctors and medicines, and the invention of tech-enabled lifesaving treatments, the quality of healthcare has improved vastly. However, the Indian healthcare ecosystem suffers from ailments such as a low doctor-to-patient ratio, and the state of healthcare in tier-2 cities and rural areas. According to a 2021 study, the density of the active health workforce in India is only slightly above a quarter of the WHO’s recommendation, which stands at 44.5 skilled health workers per 10,000 population. This vividly indicates the areas which have scope for improvement.

Here, health tech start-ups have become our saviours in disguise. Fuelled by emerging technologies and connectivity solutions, health tech start-ups are coming up with fresh ideas to democratise healthcare. The likes of telemedicine and teleconsultation are providing people living in tier II, tier III cities and rural areas with healthcare access and facilities that was previously unheard of. AI based physician assistant solutions are improving the efficiency of the doctors currently available. Smart microscopes are making diagnostic services available in low resource areas.

Investing to ensure a healthyhealth-care infrastructure

Although the potential of the solutions offered by healthcare startups is supposed to be the appropriate success metric, the robust investor activities can only be expected if the startup’s capability to scale, is evident. This is often determined by the solutions’ ability to integrate with existing systems, its underlying ease of use, and adherence to regulatory compliances, apart from the cost of implementation. Recent reports state that the total funding into domestic healthtech companies dropped to 1.4 billion dollars in 2022, a 55 per cent on-year fall when compared to 2021.

In this evolving scenario, solutions focused on enhanced patient experiences, reduced mortality rate and improved productivity or data-based clinical outcomes are alluring investors greatly. Startups that have completed clinical trials or have substantial clinical validation demonstrating the effi- cacy and safety of their critical care solutions are valued by investors. In fact, scalable, disruptive business models that can show a return on investment will be most successful, and among them, AI/ML and deep learning-empowered startups will be the tablestakes.

Cutting to the chase, demonstrating effectiveness and market opportunity, managing sales cycles and capital, and remaining regulation compliant, should be the mantra being adopted by startups.

Corporates and start-ups can collaborate to coinnovate and co-create

It is not very difficult to comprehend why corporate partnerships with start-ups is a good bet; while start-ups can use corporate funding as the wind beneath their wings, gain resources, and customer access, corporates on the other hand can fulfil their need to innovate and stay ahead of competitors and disruption, while also accessing new technology through startups.

Hospitals, diagnostic chains and clinical research organisations are working with innovators to develop critical care solutions and empower those pursuing clinical research studies, while aiming for product enhancement. Corporates are making strategic investments in high-impact startups in the critical care area to bolster them with growth capital. Some corporates even boast designated venture arms that are involved in the in-house or partnered incubation programs to help scale promising startups. Additionally, tech platforms and product enterprises are engaging with startups to grant them resources for product development and deployment.

Digital healthcare is a priority for India and there are various initiatives, like the Ayushman Bharat Digital Mission (ABDM) by the National Health Authority (NHA), which are creating the backbone for an Integrated Digital Healthcare ecosystem. Coupled with these initiatives, nimble and consumer-focused health tech startups have begun to fill the gap between current and future needs, enabling a path toward the ‘Future of Health’.

In fact, health tech startups in India are currently enjoying robust growth, and hopefully, with thousands more set to take seed in the coming years, the state of healthcare in India looks extremely promising.