From wearables like wrist-bands that keep track of your physical activity to wireless weighing machines that help you trace your weight fluctuations, technology is influencing healthcare with an eye firmly on the consumer.

But while that trend is yet to keep the pace witnessed in the United States, for instance, healthcare influenced by information technology (HIT) is a niche seeing increased activity in India too, as indicated by deals in this segment, observes Raj Prabhu, co-founder of Mercom Capital Group, a global consulting and communications firm.

In the US, venture capital (VC) funding in HIT doubled to $2 billion in 2013 compared with $1.2 billion in 2012.

In India, though, the total deal size is small at $12 million, the number of deals has increased to seven from one last year, he told Business Line , over the phone from Texas.

India stands fourth, after the US, the United Kingdom and Canada, he pointed out. And despite the funding fatigue and recessionary trends that worry other sectors, “in terms of venture capital funding, this is the hottest sector”, he adds.

US push

Wearable technology is a trend in the US and the big push is on consumer-centric, focused technology, he observes.

Looking back at the healthcare support from the US Government, he says, in 2009, about $17 billion was put into getting all doctors and hospitals to not just to invest in IT for themselves, but in technology that communicates with each other — towards reducing unnecessary costs and in getting a system in place that helps pick up disease patterns and trends, for instance.

In addition to this, there is the healthcare coverage, that aims to give all people insurance, and between these several initiatives is the opportunity for people operating in the HIT space.

India connects

In India, the projects are in helping people to connect remotely through computers, telephones and Skype, for example, he says.

Some of last year’s key transactions include venture-capital funding for Strand Life Sciences, a Bangalore-based company providing products and solutions, including data integration and analysis. It received funding from Burrill & Company.

Bangalore’s Doctree Health Infoservices, connecting doctor and patient, raised $500,000; iKure Techsoft, a Kolkata-based developer of technology solutions for the delivery of healthcare services in rural areas, received an undisclosed amount in angel funding through the Intellecap Impact Investment Network (I-cube-N) and also funding from IIM Ahmedabad’s Centre for Innovation Incubation & Entrepreneurship (CIIE), along with US-based investor Village Capital.

Chennai’s Xcode, a preventive wellness programme provider, raised about $170,000 angel funding from Shead Holdings, a micro-venture capital fund from the US, and an individual investor.

Bangalore’s InterpretOmics, a cloud-based software system for next generation genomics data analysis and interpretation, raised about $1.7 million in angel funding from Amarante and two undisclosed local investors.

And MeraDoctor, a Mumbai-based provider of ‘health-plus-finance’ model that combines doctors’ advice with health insurance and discounts on tests and medicines, received an investment from Accion through its Venture Lab.

In the mergers and acquisition space, Virinchi Technologies, a Secunderabad-based financial IT products, solutions and services company acquired a majority stake in the Asclepius Consulting & Technologies, a software solutions provider for mid-size hospitals and nursing homes in India, says Mercom, in its list of local transactions.

Info-box:

VC funding in global HIT space saw 571 deals in 2013 compared with 163 in 2012.

There were 466 investors involved in HIT funding, 2013.

Top VC investors were Khosla Ventures and The Social+Capital Partnership with eight deals each; Norwest Venture Partners with seven deals, and Kleiner Perkins Caufield & Byers with six deals.

>jyothi.datta@thehindu.co.in

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