Healthcare sector may see an increase in PE investments

Mumbai: Healthcare Sector in India may see a significant increase in the investment by the Private Equity and Venture Capital firms, according to a research firm Venture Intelligence's recent study. The study states that the PE and VC firms are keen on increasing their investment in the Healthcare Sector. These firms have already invested around 2 billion over the last five years in the sector, reports financial express.

Diagnostic services, Medical devices and equipment, wellness centers and hospital chains are the hot focus of these investors as around 42 percent of the PE and VC players feel that there is a big scope and a strong opportunity of investments in the semi-urban and the rural areas.

"Given the fragmented nature of both the hospitals and pharmaceuticals sectors, investors also see potential for tapping into consolidation opportunities in partnership with growth-oriented entrepreneurs," said Arun Natarajan, CEO of Venture Intelligence.

The investors have concerns and see high risk in the investment in the life science segment, as there is a significant foreign and domestic investment. These investment firms also have their concerns about the long gestation periods, scalability and talent shortage in the healthcare sector along with the clarity in the regulations and corporate governance standards.