Quadria Capital's HealthQuad, an India-focused healthcare venture capital firm, has raised Rs 1,134.5 crore for its second fund's pre-final closure. Its initial capital size was Rs 550 crore, with an additional Rs 550 crore green shoe option.

“The size of the fund is likely to increase by another 20-25% depending on investors’ agreement,” Charles-Antoine Janssen, says cofounder and chief investment officer of HealthQuad.

"Growth in the sector creates a significant opportunity for funds like ours." "A larger fund will allow us to invest in more companies, make larger checks, and provide longer support to portfolio companies," Janssen explained.

According to Sunil Thakur, Partner at Quadria Capital, the fund has garnered commitments from global financial and strategic organisations, including some global pharma and health-tech businesses, development financial institutions, and large European conglomerates.

“80% of the fund has been raised from overseas investors, and 20% from domestic institutions,” Thakur said. A final close is expected by March 2022.

The Covid-19 pandemic, according to the firm, has accelerated the digital transformation of healthcare. With more than 175 million homes having access to digital healthcare, at least 20% of healthcare transactions are likely to move to the virtual realm.

Sponsors of HealthQuad include Quadria Capital, an Asian healthcare-focused private equity fund, and KOIS, an impact investment firm.

India is predicted to be the world's third largest economy and population by 2030, according to the firm. The region's rapidly growing population and increased burden of chronic diseases (more than 100 million diabetes individuals by 2030) have resulted in a surge in healthcare demand.

However, massive healthcare concerns such as accessibility, cost, and quality of care continue to exist due to abysmally low healthcare spending (public healthcare spending is roughly 1.3 percent of GDP).

“We believe, with its large pool of talented doctors, coders and entrepreneurs, India is best positioned to develop an ecosystem of tech-enabled affordable healthcare solutions which not only solve the unmet needs of more than 500 million Indians but could also cater to more than 3 billion people in other low- and middle-income countries,” Janssen said.

The firm is hoping to back disruptive, technology-based, and innovation-driven firms through HealthQuad.

Quadria's cofounder Amit Varma told in June that the company wants to invest $400-$500 million (Rs 2,972-Rs 3,670 crore) in India over the next 18-24 months.