Chronic diseases, affect one in five Indians or around 270 million people. Stress and unbalanced lifestyles in today’s fast-paced world further exacerbate these health problems. Healthcare innovations have traditionally focused on reactive solutions to treat diseases after symptoms appear. Chronic and preventable diseases have remained largely ignored.
- Heart Disease: Nearly 3 million deaths occur annually in India, with many heart attacks affecting individuals under the age of 50.
- Cancer: One in nine people will develop cancer in their lifetime, with late diagnoses significantly reducing survival chances.
- Diabetes: 11% of India’s population is diabetic, with many cases remaining undiagnosed.
- Mental Illnesses: India ranks 126 out of 149 countries in the UN World Happiness Index as of 2023. 5 out of every ten Indians expressed unhappiness. Overall mental health burden is estimated to be $2-3 billion in India, with rising costs for psychiatric care.
Many chronic and lifestyle diseases remain undiagnosed, contributing to the ever-growing health crisis. This gap presents an opportunity for tech-enabled solutions to not only manage and treat diseases but also forecast and prevent them. The proliferation of healthcare data, driven by the increasing use of wearables, along with advances in machine learning (ML) and AI, has enabled the development of sophisticated solutions that offer promise in data-driven chronic disease risk assessment and diagnosis.
Ironically, the technologies contributing to sedentary lifestyles and digital stress—smartphones and gadgets—are key to a healthier future. Health monitoring apps have made it easier for people to track their well-being. Smart apps and wearable devices offer insights on diet, calories burned, exercise routines, and health warnings. They can alert patients when it’s time for a checkup based on their health data, making preventive healthcare more accessible and effective.
Enter the Era of Preventive Healthcare:
The preventive healthcare sector in India is rapidly growing, projected to reach $532 billion by 2030 with a CAGR of 22%, surpassing the curative market’s growth rate of 15%. Companies in this space have secured approximately $1.8 billion in funding to date, highlighting the sector’s potential and investor interest in proactive health solutions.
Source: https://www.ibef.org/blogs/preventive-healthcare-in-india ; Kalaari Analysis
Factors Contributing to Growth in Preventative Healthcare:
Post-COVID-19, a significant shift in consumer behaviour is evident. A survey shows that 70% of Indians prioritize overall health and precautionary measures in their daily routines. By 2026, a doubling in per capita spending on health foods is anticipated, with consumers showing willingness to pay more for healthier options. Alongside this, the government has increased healthcare budgets, emphasizing initiatives to enhance healthcare infrastructure and encourage healthier lifestyles.
Key government initiatives:
- Ayushman Bharat Digital Mission (ABDM): Aims to establish a comprehensive digital health ecosystem in India, providing secure and inclusive access to health information nationwide. By enhancing access to both macro and micro-level health data, the initiative supports advanced analytics, utilization of health biomarkers, and enhances preventive healthcare significantly.
- National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Disease, and Stroke (NPCDCS): Focuses on the prevention and management of chronic diseases.
- National Mental Health Programme (NMHP): Raising awareness and improving mental health care. Additionally, initiatives like The Fit India Movement are inspiring millions to embrace physical activity and a healthier lifestyle.
The Rise of Health-Conscious Individuals:
- In a survey conducted by RedSeer among 700 health-conscious individuals (HCIs), 90% reported using health monitoring apps or devices, typically investing between 4,000 to 10,000 INR annually.
- HCIs currently represent 35% of the population, with a projected 50% rise in their expenditure.
- Consumer attitudes in India are also evolving significantly, with a growing emphasis on preventive measures such as regular screenings, health check-ups, and health education to identify or prevent conditions early. This shift, coupled with a younger population and rising discretionary spending, presents a massive opportunity in the preventive care space.
Internet Penetration and Reducing Device Costs:
- 2.5 million Indians are acquiring wearable devices to monitor fitness, diet, and health indicators, with 80% of these devices priced under $50.
- The increasing digital penetration, supported by approximately 420 million Internet users in India, is expected to further accelerate this trend.
Economic benefits of bringing focus on preventive healthcare:
In addition to these favorable trends, prioritizing preventive healthcare is vital to alleviate pressure on India’s overburdened health system. With a doctor shortage in rural areas and a significant deficit of healthcare facilities, early intervention and health monitoring is imperative.
Adopting proactive health measures also offers significant value addition to consumers, including:
- Cost Savings: Avoiding expensive treatments, hospital stays, and long-term care.
- Increased Productivity: Healthier individuals miss fewer workdays.
- Lower Insurance Premiums: Healthy lifestyles lead to lower insurance costs.
- Improved Quality of Life: Financial security and healthier aging.
Where the Opportunity Lies:
The first wave of preventive healthcare startups focused on:
- Physical Wellness: Companies like our portfolio firm, Cult, led the charge by making fitness fun, engaging, and convenient. Others focused on increasing affordability and organizing and digitizing the 95% unorganized gym market. Newer solutions focus on enabling home workouts by leveraging immersive technology to keep users engaged.
- Supplements and Nutrition: The healthy food and nutrition market in India is projected to expand to $30 billion by 2026. Brands like Plant Veda, Nutrova, and Oziva are meeting the escalating demand for premium supplements and alternative nutrition choices. Busy schedules, pill exhaustion, and body image concerns have been driving forces behind the swift expansion of this sector.
- Mental Health and Wellness: In India, 10.6% of the population grapples with mental health disorders, and a significant 76% of these individuals require professional intervention. Startups such as Rocket Health, Wysa, and Lissun, have directed their efforts towards offering assistance through therapist-led and peer-to-peer (P2P) models with a global outlook, aiming to attain high average order values (AOVs)
Looking ahead, we at Kalaari Capital believe opportunity lies with startups focusing on:
- Specialized Condition Monitoring: Focus on specific biomarkers for early disease detection, moving beyond general health metrics like movement and heart rates. Innovative startups like Mave Health, Marbles, and Neurosymphony are pioneering hardware-based mental health solutions. These devices aim to detect and address early indicators of conditions such as ADHD and migraines by utilizing advanced sensors and AI analytics.
- Evolving Insurance Sector: Post-COVID, the insurance sector has seen a 25.9% rise in health insurance adoption. There is a notable emphasis on incorporating outpatient department (OPD) benefits, with companies such as Kenko, Clinkikk, and Visit Health providing these services as distinguishing features. Employer-sponsored insurance has shown a 2x increase, with more employers now offering flexible health insurance plans. As approximately 60% of hospitals depend on receivables and claims processing typically takes 2-6 months, the demand for claims management solutions tailored for hospitals has been on the rise.
- Personalised Lifestyle Monitoring: Through the integration of data from wearables, startups can provide personalized diet plans and fitness routines by harnessing AI and machine learning. This allows for customized advice based on individual health data.
- Early Detection and Screening Technologies: These advancements are utilizing AI to precisely predict or identify initial indicators of chronic and non-communicable diseases. Some technologies aim at streamlining general bodily tests, making them quicker, more convenient, and cost-effective.
The preventive healthcare sector in India offers a compelling opportunity to drive social impact, financial returns, and healthcare transformation. By focusing on disease prevention and leveraging technology and data, it contributes to building a healthier, more resilient, and thriving society for the future.
Investing in these innovative solutions not only addresses critical health challenges but also positions us at the forefront of a healthcare revolution, ensuring sustainable growth and improved public health outcomes If you are an early-stage founder building in this space, reach out to us at pitch@kalaari.com.