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Healthcare capital fund HealthQuadhas announced the final close of its second fund, HealthQuad Fund-II, with a total subscription of $162 million (Rs 1,215 crore), more than 2.2X greater than its target size at launch.

MSD, the global biopharmaceutical company, led commitments from global financial investors, strategic institutions in pharma and healthcare, development financial institutions (DFI), funds of funds, and large European conglomerates.

HealthQuad Fund-II is investing in 10-15 young private companies across high-growth segments of the healthcare sector in India, aiming to generate value as well as achieve deep social impact.

Charles-Antoine Janssen, Co-founder and Chief Investment Officer of HealthQuad, said, “The close of our second fund marks a significant step for HealthQuad as we continue to invest in one of the world’s most promising healthcare markets.

“India’s healthcare industry is compounding at approximately 20 percent growth rate and is likely to be a $372 billion industry by end of this year.”

He added that new-age innovative models are fuelling the rise of the Indian healthtech market, which is growing at 25 percent annually and is poised to reach $21 billion by 2025.

“”e are energised by the vision our global investors (LPs) share with us of a flourishing and evolving Indian healthcare ecosystem that answers the needs of people across all income segments while generating attractive financial returns. We have been investing in the healthcare market in India since 2016 and are grateful for the meaningful partnerships we are building with world class, path-breaking entrepreneurs who emerge from India’s growing pool of 8,000+ healthtech companies.”

The investor base includes Ackermans & van Haaren (AvH), Teachers Insurance and Annuity Association of America (TIAA), Quilvest, HCL Corporation, DFIs such as CDC, Swedfund, and SIDBI.

Carmen Villar, VP Social Business Innovation at MSD, said: “At MSD we are committed to advancing health equity globally through our impact investing portfolio. Our investment in HealthQuad will contribute to a robust and sustainable healthcare ecosystem through innovative solutions in financial inclusion, patient engagement, and supply chain, in India and around the world”

MSD’s investment builds on the company’s longstanding presence in India, where it reaches millions of people with its health products.

HealthQuad is an Indian healthcare VC fund that invests in disruptive healthcare models, typically using technology to achieve reach, scale as well as impact. It is backed by Quadria Capital, a leading healthcare focused private equity fund in Asia, and KOIS, a global pioneer in impact investing and innovative finance. Quadria and KOIS provide an ecosystem of sector knowledge, network, brand, commercial synergies and market access.

To date, over $60 million of HealthQuad Fund-II has already been deployed in some of the most dynamic, high growth, and disruptive companies in sub-segments of the healthtech ecosystem.

These investments include Medikabazaar; THB, a clinical data aggregation and intelligence platform; Stanplus, a tech-enabled Emergency Response System company; Ekincare, a tech-led corporate wellness platform; Impactguru, an integrated healthcare financing platform; Qure.ai, an AI company focused on radiology; and HealthifyMe, India’s leading digital wellness company.