New Delhi: mental health It may have become a focal point for both individuals and companies post-Covid, but ironically the sector has seen a sharp decline in funding in 2023. Private equity funding in the mental health tech sector dropped significantly to $3 million, just one-quarter of the value. Data obtained from Traxon shows that investments were made in the last year.
This comes even as the overall healthcare sector remains the focus of PE deals worth up to $4.6 billion in 2023.
Post-Covid, mental well-being has become important for individuals and companies. As a result, 2021 saw a significant increase in demand for mental health startups due to mental health issues. pandemic, According to estimates, funding in these ventures increases to approximately $10 million and $12.1 million in 2021 and 2022, respectively.
“Mental health challenges are on the rise globally. According to WHO, nearly 1 in every 8 people suffers from mental health disorders. India is home to 446 mental health tech startups, which is 6% of the total number of startups in the region. represents more than 100 million people worldwide. Indian mental health tech startups have raised a total of $3.4 million in funding for 2023, which is significantly less than the global total of $824 million. However, in the first 10 days of 2024 alone , the sector has seen funding of $4.4 million, an increase of more than 31% compared to last year. Overall, Indian companies have raised $40.4 million in the sector so far, which is more than the global This is a small fraction compared to the $13.5 billion raised. Notable ventures like Amaha, which has raised $5.2 million, and Urban Health, which has raised $3.4 million, have attracted investor attention in this space,” said Neha Singh, co-founder of Traxon. told TOI.
“Investors have become cautious about what business models they support,” said Vidit Bahri, co-founder and chief growth officer of mental health care platform Sukoon.
This comes even as the overall healthcare sector remains the focus of PE deals worth up to $4.6 billion in 2023.
Post-Covid, mental well-being has become important for individuals and companies. As a result, 2021 saw a significant increase in demand for mental health startups due to mental health issues. pandemic, According to estimates, funding in these ventures increases to approximately $10 million and $12.1 million in 2021 and 2022, respectively.
“Mental health challenges are on the rise globally. According to WHO, nearly 1 in every 8 people suffers from mental health disorders. India is home to 446 mental health tech startups, which is 6% of the total number of startups in the region. represents more than 100 million people worldwide. Indian mental health tech startups have raised a total of $3.4 million in funding for 2023, which is significantly less than the global total of $824 million. However, in the first 10 days of 2024 alone , the sector has seen funding of $4.4 million, an increase of more than 31% compared to last year. Overall, Indian companies have raised $40.4 million in the sector so far, which is more than the global This is a small fraction compared to the $13.5 billion raised. Notable ventures like Amaha, which has raised $5.2 million, and Urban Health, which has raised $3.4 million, have attracted investor attention in this space,” said Neha Singh, co-founder of Traxon. told TOI.
“Investors have become cautious about what business models they support,” said Vidit Bahri, co-founder and chief growth officer of mental health care platform Sukoon.
