Southeast Asia hits $226m in healthtech investments in 2019, report finds

Southeast Asia recorded a total of US$226 million in healthtech investments in 2019, with Singapore and Indonesia scoring about 93% of the total funding value, according to a report by Singapore-based advisory firm Galen Growth.

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The findings are part of Galen Growth’s report on healthtech investments in the Asia-Pacific region. The report noted that last year’s amount was a record for Southeast Asia in particular, reflecting growing maturity in the ecosystem.

Singapore accounted for the three largest deals in the region (Biofourmis, CXA Group, and Lucence Diagnostics) and Indonesia for two other mega deals (Halodoc and Alodokter).

By deal volume share, Singapore kept its lead in the sub-region with a 54% share, though shrinking from 74% as neighboring countries expanded their ecosystems and attractiveness.

Malaysia, Indonesia, Vietnam, and Myanmar increased their deal volume share in 2019. Notably, Vietnam catapulted into the ranking tables with an 11% share.

The most funded healthtech categories in Southeast Asia by value were health management solutions, patient solutions, medical diagnostics, medical education, and population health management.

While total early-stage deal volume share shrunk, growth-stage deals continued to gain momentum, representing 37.5% of all shares in 2019, up from 85% as compared to 2018.

In a white paper titled “How Tech Will Meet Evolving Healthcare Needs in Southeast Asia,” Singapore-based VC firm Monk’s Hill Ventures notes how Southeast Asia is poised to be at the forefront of global healthcare innovation as healthcare expenditure is expected to hit US$740 billion by 2025.

Overall in Asia Pacific, the healthtech ecosystem closed about US$5 billion in investments across 340 deals in 2019, according to Galen Growth, despite geopolitical and domestic headwinds.

This report was first published on KrAsia.