Healthcare-focussed venture capital firm Healthquad Advisors Pvt. Ltd has marked the final close of its debut fund at Rs 75 crore ($11.6 million).
This is higher than the targeted Rs 65 crore it intended to raise because of heavy demand from some foreign investors, the fund's co-founder Amit Varma told VCCircle.
The total investment target is expected to be higher with co-investments by limited partners (LPs).
"We are looking to deploy around Rs 400 crore, along with co-investors and partner funds in healthcare models that are driven by new age disruptive technologies and are changing the way healthcare is delivered and accessed in India,” said Varma.
Healthquad raised about 85% of the fund from family offices in Europe and India while the remaining was pooled in by the founders of healthcare-focussed private equity firm Quadria Capital – Varma and Abrar Mir.
Healthquad was launched by Quadria’s founders last year to invest in healthcare companies through pre-Series A and Series A rounds of funding.
The fund targets five key healthcare sub-sectors—healthcare delivery services, life-sciences, medical devices and technology, healthcare IT and associated healthcare services. It is looking to invest in 8-10 companies.
The fund has already invested in four companies including health-tech firm Neurosynaptic Communications Pvt. Ltd and hospital chain Regency Hospital. Recently, it also invested in healthcare staffing firm Hi Impact Consultants.
Early this year, VCCircle first reported Healthquad invested in Hyderabad-based single-specialty healthcare company Asian Institute of Nephrology and Urology Pvt. Ltd.
Charles Antione Janssen, the fund’s third co-sponsor, said that its final close will help it fund more fast-growing, profitable and impactful companies.
The healthcare sector in India has attracted a significant interest from private equity and venture capital players in the past years. According to VCCEdge, the data research platform of News Corp VCCircle, 25 deals worth $432.65 million have been struck so far this year.
New healthcare-focussed funds have been entering the market. Last year, Huzaifa Khorakiwala, executive director at drugmaker Wockhardt, said he is floating a healthcare-focussed angel fund.
Other healthcare-focussed funds in the market include India Life Sciences Fund II, Asian Healthcare Fund and Somerset Indus Capital Partners.