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New Delhi, January 11, 2025 – India has emerged as the largest healthcare private equity (PE) market in the Asia Pacific region by deal volume in 2024, accounting for 26% of the region’s total transactions, according to a report by Bain & Company. This milestone underscores the country’s rising prominence as a hub for healthcare investment, fueled by its expanding middle class, strong economic growth, and increasing healthcare demands.
The report highlights India’s robust growth trajectory, with healthcare spending projected to reach $320 billion by 2028. Investors are actively targeting providers, biopharma, and related services, leveraging the country’s diverse healthcare landscape.
Strategic Investments and Platform Consolidation
Platform consolidation and strategic acquisitions have been pivotal in driving India’s healthcare market growth. Successful private equity exits, such as Advent International’s $1.6 billion sale of BSV Group to Mankind Pharma, have validated the attractiveness of India’s buyout market.
“Over the past two years, the provider space has seen significant interest, with funds showing a strong appetite to pursue platform buildouts, given the impressive track record of exits in the space,” said Dhruv Sukhrani, partner at Bain & Company and leader of the India healthcare practice.
Examples of recent significant investments include:
- Morgan Stanley acquiring a minority stake in the Hyderabad Institute of Oncology.
- Blackstone implementing a buy-and-build strategy with Care Hospitals, acquired in 2023, with plans for multiple tuck-in acquisitions.
- Advent International’s investment in Apollo Hospital Enterprise’s digital health platform, Apollo 24|7.
India as a Compelling Alternative to China
The report identifies India as a compelling alternative to China for healthcare dealmaking. With its growing middle-class population driving healthcare demand and a proven track record of high returns on investment, India has become increasingly attractive to global funds.
Additionally, India’s favorable macroeconomic conditions and strong public markets have enabled a variety of successful PE exits. Notable examples include sponsor-to-sponsor deals, such as KKR’s $840 million acquisition of Healthium Medtech from Apax Funds, as well as strategic acquisitions by well-capitalized firms.
Future Outlook
The report anticipates continued investor confidence in India’s healthcare market. With funds actively increasing exposure across both bulge-bracket and mid-market segments, India is poised to remain a prime destination for private equity investments.
“India’s diverse healthcare landscape, combined with its proven track record and economic stability, positions it as a leading investment location in the Asia Pacific,” the report concluded.
This upward trend is expected to reinforce India’s stature as a healthcare investment powerhouse, attracting global players aiming to capitalize on its dynamic and rapidly growing market.
