Single Specialty: The Hotspot to Invest in Healthcare

Asish Mohapatra
Vice President-Matrix Partners India
Wednesday, October 2, 2013
Asish Mohapatra
Matrix Partners India is a Mumbai based investment firm with rupees 3,000 crore under management. The firm invests in companies targeting the Indian consumer market at the seed, early and early growth stages.

Healthcare has its nascence and will be a crucial element in India’s rapid growth. The area of my focus has always been healthcare and mainly domestic market. Within healthcare, I have zeroed-in on service and specifically single speciality vertical. Healthcare is becoming a big area of focus for most players across vintages and ticket sizes as other sectors are saturating or are seeing a slow down with the economy considerations in India. We can witness large deals happening in Healthcare as there are atleast fifteen players in India who are scaling up.

Focusing More on Single Speciality Healthcare

Single speciality is always valuable for its beneficiaries in terms of services they provide. Dedicated doctors, trained staff and technicians are unique to single speciality healthcare. The infrastructure attuned to the specialty, affordable care as the benefits of scale in consumables, faster discharge, lesser incidence of hospital acquired infections and the chance to enjoy the moment like in birthing give more specialized care for patients.This provides high patient satisfaction. Single speciality healthcare is more concentric on their functions and this will give an edge to the organisation like low risk surgery, lower capital expenditure, higher operating margins and thus the management becomes easy and more profitable and they can expect more ROI. When it comes to shareholders, this sector provides explosive growth, stemming from demand-supply gap and scalability of model. Business model is asset light, high return and cash generating will attract a lot of mid-sized fund investment in single specialty healthcare. More of the single specialty investment is going into specialties that affect quality of life rather than ones that are cosmetic or mortality causing.

Healthy Innovations

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