Tracxn’s HealthTech India Report reveals a 55% YoY decrease in funding for the sector, with total investments dropping to $1.4 billion in 2022. The primary reason for the decline is a 75% reduction in late-stage investments, which fell from $2.4 billion in 2021 to $606 million in 2022.

Seed-stage funding saw a 52% YoY drop in 2022, totaling $75.2 million, whereas early-stage funding increased by 26% YoY, reaching $743 million. Remarkably, the first half of 2022 accounted for 70.3% of the total funds raised.

Though funding has been declining since Q4 of 2021, the HealthTech sector is predicted to experience a resurgence in activity due to higher digital adoption, favorable government policies, and advancements in technologies such as AI, robotics, cloud computing, data analytics, and IoT. Even with a significant drop in investments, 2022 remains the second-highest funded year in the past decade, after 2021, driven by an increased focus on health and a surge in the adoption of digital health services.