SEA Health Tech Investment Insights

Executive Summary Healthcare in SEA Challenges and Opportunities Investment Landscape Investment Recommendations • • • • • • • • • • • Healthcare Expenditure in SEA is on the rise, growing even faster than GDP. At the current pace, it is expected that by 2025, total healthcare spending could accelerate up to ~USD 740 bn from the current ~USD 425 bn. This growth is primarily driven by an ageing population (% of population above 60 will increase from 9.6% in 2016 to 21.1% in 2050, driven by the increased life expectancy of elders and reduced fertility rates of an increasingly wealthy population) and prevalence of non-communicable diseases (Smoking and Overweightness prevalent in at least 20% of the population in each of the target regions). The key challenges in SEA Healthcare are caused by capacity shortages and fiscal constraints, which are further compounded by country specific issues such as geographic dispersion. Despite the increasing demand, government health expenditure as % of GDP has stayed stagnant over the years. Rising income groups and an affluent population have fueled the demand for higher quality of care Health Tech is well positioned to solve these challenges as Technology can play a key role in delivering convenient, cost-effective, and high-quality treatment. Further, digital penetration is rising rapidly, supported by significant push from government to adopt technology. The Health Tech sector in SEA saw record breaking funding levels in 2019 as deal volume rose at a 63% CAGR 2 of the 5 largest SEA Health Tech deals in 2019 are based in Indonesia (Halodoc and Alodokter), while the others are based in Singapore Sequoia Capital, Monk's Hill Ventures, SG Innovate, Wavemaker, East Ventures are some of the funds who invested actively in SEA Health Tech in the last few years Corporates and Health Tech ventures are increasingly entering into partnerships to scale digital health Taking into account IFC's development goals, potentially investable start-ups identified through our research are: Halo Doc, Alodokter (Indonesia), Lifetrack Medical Systems, mClinica (Philippines), Medical Departures, Meticuly (Thailand), JioHealth, MyDoc, DoctorAnywhere (Vietnam) Further, potentially investable VCs that have been active in HealthTech are: East Ventures (Singapore, Indonesia, Tokyo), Intudo Ventures (Indonesia), Monk's Hill Ventures (Singapore, Indonesia, Vietnam), Wavemaker (Singapore, USA), Open Space Ventures (Singapore) INSEAD 5

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