The players in SEA’s ailing healthtech landscape

SOUTH-EAST Asia’s healthtech space seems to be under the weather in 2024.

The industry has recorded US$57 million in disclosed funding for the first three quarters this year, which was almost 85 per cent lower than the amount raised by healthtech startups in the same period in 2023.

Looking at the full-year figures, last year was also the most successful year historically for healthtech funding, with startups raising US$452.9 million.

Notably, there were 24 deals in the first three quarters of 2024, down from 32 in the same period of 2023. This implies that the average check size has fallen, and there were not as many late-stage deals in 2024 compared to last year.

Indeed, the largest round this year raised just US$14.2 million. The deal was in April, when Vietnam-based Nhi Dong 315, which operates pediatric and maternity clinics, raised a series C round with participation from Singapore’s sovereign wealth fund GIC.

Additionally, half of all healthtech deals this year have been series A rounds or earlier. In total, these rounds accounted for US$37.3 million.

Early-stage rounds have dominated South-east Asia’s overall tech investment landscape in the last 12 months as well, according to Tech in Asia data.

Lloyd Price, founder of healthtech advisory firm Nelson Advisors, said earlier this year that in general, the high valuations of tech startups that sprouted after the pandemic have driven “tourist” investors into healthtech.

These are investors who do not necessarily have a deep understanding or expertise in the sector they are investing in.

As valuations were corrected and capital dried up, these tourists exited the sector. Meanwhile, the investors who stuck around became more cautious in choosing which startups to back.

However, Price noted that the healthtech sector can still attract investors, but likely only those who are more knowledgeable in the space.

Most active investors in SEA’s healthtech startups

In South-east Asia, for example, Antler is the most active investor in health-focused tech startups in the region, having invested in 20 companies since its inception. This is true in 2024 too: of the 24 rounds so far this year, Antler invested in four.

Its latest investment in the space was in June this year, when it joined the US$1 million seed round of Sova Health, an India-based gut health platform.

Antler’s other investments include those in Zora Health, Glorious, and Loop Health. While Zora Health focuses on family planning and holistic wellness, the latter two tackle frictions in long-term illness management.

Not far behind Antler are East Ventures and Seeds Capital, which invested in 14 and 13 healthtech startups, respectively.

Of the healthtech firms that raised capital this year, most are based in Singapore. These include Rootally, which provides an app for digital health assessments, and Milkvik Bima, a health app that provides around-the-clock telemedicine services.

Singapore may be in pole position, but Vietnam has not slowed its pace and is hot on the heels of runner-up Indonesia.

While there are not many artificial intelligence (AI) centric healthtech startups yet in South-east Asia, the rise of such companies may help revive the industry’s funding landscape.

One early example is HD, a Thailand-based firm that connects patients to facilities for more affordable surgeries. The company raised US$5.6 million in April to build an AI chatbot that will help boost its marketplace services.

In India, meanwhile, healthcare startup Qure.ai has recently secured US$65 million in a funding round to extend its generative AI model for disease detection overseas. This figure is already above the region’s total so far this year.

As South-east Asia’s healthtech space continues to evolve, we hope that this landscape map will help you keep abreast of the latest developments. You can also catch our coverage of the sector here and check out more landscape reports here. TECH IN ASIA