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o3 Capital Launches Whitepaper on Healthcare Sector, Highlighting PE’s Evolving Role
- o3 Capital, one of India’s leading mid-market investment bank, has played a significant role in this evolving landscape.
India’s healthcare sector remains an area of vast potential but is significantly underpenetrated, with infrastructure gaps creating a major opportunity for investment and innovation. While the sector has been expanding rapidly, challenges in accessibility and affordability persist. Private equity (PE) has emerged as a key driver in addressing these gaps, funding innovative business models, and enabling consolidation across healthcare sub-segments.
o3 Capital, one of India’s leading mid-market investment bank, has played a significant role in this evolving landscape. With over 18 years of experience, the firm specialises in financial and strategic advisory, leveraging deep domain knowledge, access to key decision-makers, and a track record of successful transactions. The firm provides tailored, responsible, and unbiased solutions to a wide range of clients, including established market leaders, private equity houses, global corporate entities, and emerging startups. Its teams operate from Mumbai, Bengaluru, and New York, bringing insights and expertise to complex financial assignments.
While giving the Welcome Address at the VCCircle Healthcare Summit, Shiraz Bugwadia, Senior MD at o3 Capital noted the sector’s evolving investment landscape, stating, “We see PE playing a pivotal role in making healthcare affordable and accessible in India. Their increasing interest will lead to direct downstream benefits for patients, improve quality of care and optimise health outcomes.’’
Speaking at the launch of o3 Capital’s whitepaper, titled "Consolidation to Expansion: Private Equity’s Influence on India’s Healthcare Landscape (2020–2024)", during the VCCircle Healthcare Summit 2025 in Mumbai, Swati Mehta, Director-Healthcare at o3 Capital emphasized that the healthcare sector is experiencing a shift, and the industry is moving towards consolidation rather than expansion. Launched in collaboration with VCCEdge, India’s leading financial research platform, the whitepaper was unveiled both digitally and in print format at the event in Mumbai, in the presence of eminent leaders, investors, and stakeholders from the healthcare industry.
It offers an in-depth analysis of private equity investments across various healthcare sub-segments, such as multi-specialty and single-specialty hospitals, diagnostics, medical devices, and health tech. The document highlights the growing influence of private equity in healthcare, from platform-driven consolidation in hospitals to renewed investor interest in diagnostics and medical devices.
Swati spoke about the significance of the report, stating, “At o3, we have worked across various deals in this segment. It thus made sense for us to share our understanding and insights on the evolution of the industry and trends that would define it in years to come.”
Key Insights from the Report: PE’s Role in Healthcare Growth
The report identifies several notable investment trends in India's healthcare private equity landscape.
1. Resurgence of PE Investments
- PE investments in healthcare surged to $5.6 bn in 2024, reflecting a 243% increase over the $1.6 bn 2023.
- Over the last five years, 161 PE deals were completed, totaling $14 bn in investment.
- Large-ticket transactions exceeding $100 mn saw a sharp rise, with 10 such deals in 2024 compared to just two in 2023.
- Platform-Driven Consolidation in Multi-Specialty Hospitals
- Multi-specialty hospital investments have gained momentum, with notable platform-play transactions such as KKR’s acquisition of Baby Memorial Hospital and General Atlantic’s investment in Ujala Cygnus.
- Sustained Growth in Single-Specialty Healthcare
- PE firms showed continued interest in specialized healthcare segments, including eye care, urology, oncology, and IVF.
- Large transactions in 2024 included ChrysCapital’s investment in Centre for Sight and Morgan Stanley’s investment in RG Stone.
- Diagnostics and Medical Devices: Rebounding Segments
- Diagnostics saw renewed investor interest, with Kotak’s $112 million investment in Neuberg, the largest-ever primary fundraise in Indian diagnostics.
- The medical devices sector saw deal values grow exponentially, reflecting growing investor confidence in healthcare manufacturing & good assets demonstrating growth and promising platforms for consolidation play.
- B2C Healthcare: The Preferred Investment Theme
- Investors continued to favor B2C healthcare businesses due to their scalability, brand value, and strong unit economics with a clear preference for profitable players.
Looking Ahead: The Future of Healthcare Investments in India
As India’s healthcare sector matures, private equity will remain a critical enabler of growth, innovation, and consolidation. The future will likely see greater platform-driven consolidation, increased investor participation in specialized healthcare services, and a continued shift toward value-driven investment strategies.
For industry stakeholders, the report serves as a valuable reference on how PE investors are shaping healthcare’s trajectory. With capital increasingly being allocated to scalable and high-impact business models, the coming years are expected to bring further transformation across the healthcare landscape.
To read the full o3 Capital whitepaper, click here.
Note to the Reader: This article is part of Mint's paid consumer connect initiative and is independently created by the brand. Mint assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.
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Business NewsFocuso3 Capital Launches Whitepaper on Healthcare Sector, Highlighting PE’s Evolving Role
First Published:10 Feb 2025, 07:16 PM IST
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