W Health Ventures, a health-focused investment company, is planning to raise a new fund of $70 million (about ₦105 billion) with a possibility of going as high as $100 million (₦150 billion). The company says the money will be used to build healthcare businesses from scratch, especially in India. The announcement is expected to be made public within the next few days.
The firm was set up in 2021 with about $50 million (₦75 billion) as a single-LP fund. Unlike many other investors that put money into existing startups, W Health prefers to create companies from the ground up. It has already helped build companies like Nivaan, which focuses on treating chronic pain; Mylo, a parenting platform; BeatO, for diabetes management; and BabyMD, which deals with child healthcare (paediatrics). Outside India, the company has also supported Wysa, an AI-based mental health service, and Reveal HealthTech, which helps US healthcare companies with digital transformation through AI.
For its second fund, W Health Ventures plans to create between eight and ten new healthcare companies in the next four years. The firm will focus on two key areas: first, single-specialty care platforms that provide services in areas where there are gaps in India’s healthcare system. The second focus is on using AI technology to build business-to-business healthcare companies that will work with hospitals and health providers in the United States.
According to Mr. Vishal Jethwani, Managing Partner at W Health Ventures, the approach has been welcomed by investors in both India and the US. Many of these investors are founders and operators of healthcare companies themselves. He explained that the firm will invest around $10 million (₦15 billion) in each new company, starting with smaller cheques of about $4 to $5 million (₦6–7.5 billion).
Two companies have already received investment from this new fund. One of them is Everhope Oncology, a partnership with Narayana Health, which aims to offer outpatient cancer care to patients in several parts of India.
Mr. Jethwani made it clear that W Health Ventures is not a typical “healthtech” investor. While the firm uses technology and artificial intelligence (AI) as tools, he said not every health issue can be solved online. For example, illnesses like cancer and long-term pain often need face-to-face treatment and hands-on medical care. “We are a healthcare investor. Tech helps, but it’s not the solution to everything,” he said.
The firm is planning to announce four senior staff appointments soon as it strengthens its leadership team to support growth. It is also betting big on the rising demand for healthcare services in India. Jethwani noted that 5 to 10 years ago, the average Indian only spent about $70 per year on healthcare. That’s far less than what people in developed countries like the United States spend. But after the COVID-19 pandemic, healthcare spending in India has been increasing by 15 to 20 percent every year.
Currently, total healthcare spending in India is around $300 billion, even though the country has a population of over 1.5 billion people. Jethwani believes this spending will continue to grow for the next 20 years. He pointed out that hospital and pharmaceutical stocks in India have been going up, thanks to the rising demand. “This is not a short-term change. It’s a long-term trend,” he said.
Jethwani also added that private equity firms are seeing the opportunity in the sector. One out of every four private equity deals in India today is in healthcare, pharmaceuticals, or biotechnology. That shows just how fast the sector is expanding.
W Health’s plan to double its fund size shows confidence in the potential of India’s healthcare industry. As the demand for better medical services grows, the firm hopes to build companies that will meet those needs both locally and internationally.
