Press release -
Swedfund increases support for healthcare in India
The infrastructure for healthcare in India is deficient and came under great pressure at the height of the Covid-19 pandemic. Against that background, Swedish Development Finance Institution Swedfund today reaffirms its support to HealthQuad II, an innovation fund that supports companies with digital business models in the health sector,by making an additional USD 5M commitment. The purpose is to create long-term positive effects that reach India's large and growing population.
During Covid-19, digital solutions are essential in reducing pressure on the Indian healthcare system. HealthQuad II investee companies have contributed with initiatives such as setting up treatment centres, facilitating the efficient movement of medical supplies, teleconsultations, and fundraising for medical costs.
- This add-on investment will support digital solutions for healthcare delivery in India. Alternative and technology-based solutions are necessary in leapfrogging development in the Indian healthcare sector to create affordable access to quality healthcare for more people and increase universal health coverage, says Maria Håkansson, CEO of Swedfund.
According to GSMA Intelligence, India’s technology adoption has been rapid with mobile subscriptions, smartphone adoption and mobile internet connections accounting for 80%, 69% and 53% of the population respectively in 2020. Affordable data and wide 4G coverage are also driving high data usage. This has enabled the rise of technology-based healthcare models.
Traditional brick-and-mortar healthcare models, which refer to physical facilities that offer healthcare products and services in-person, are insufficient in meeting the healthcare needs of people living in developing countries.Digital solutions are an important compliment as they have proven to be easily and efficiently transferable to other markets at a fraction of the cost.
In June 2020, Swedfund made its first commitment to HealthQuad II with USD 10M. HealthQuad II is backed by Quadria Capital, a healthcare focused private equity fund in Asia, and KOIS, a pioneer in impact investing and innovative finance.
This investment qualifies as a gender investment under the 2X Challenge
Swedfund together with CDC Group have signed an MOU with HealthQuad to announce HealthQuad II as a 2X investment
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About Swedfund
Swedfund is Sweden's development finance institution with the mission to contribute to poverty reduction through sustainable investments in developing countries. Our investments in the private sector contribute to a growing number of jobs offering decent working conditions and increases access to essential products and services like electricity and healthcare. Climate and gender are themes that permeates our investment process.
Swedfund invests in energy & climate, financial inclusion and increased access to capital for micro, small and medium-sized companies as well as healthcare and digitalization.
We are part of Swedish development corporation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Enterprise and Innovation. We are financed through reflows from the portfolio and capital injections from the development assistance budget. The return from the portfolio finances our operations and we reinvest reflows from our portfolio in new projects, i.e. we recycle our capital injections.
For more information: please visit www.swedfund.se/en| www.edfi.eu
