INDIA – Tata Capital Healthcare Fund, the healthcare-focused arm of Tata Capital Ltd, has announced a US$10 million Series A funding round in new age health tech startup DeepTek Inc.

This is Tata Capital Healthcare Fund’s first investment in digital healthcare. Following Covid-19, private equity (PE) firms that previously only invested in traditional healthcare companies have been warming up to the idea of investing in healthtech firms as well.

DeepTek Co-Founder Ajit Patil stated in a statement that the new funding will allow the company to expand its global reach and secure critical regulatory approvals.

DeepTek, founded in 2017, operates in the medical imaging artificial intelligence (AI) space. It aims to make radiology services more affordable and accessible to the public.

Its customers include hospitals and imaging centers across India, Japan, Singapore, Philippines, and other Asia Pacific countries.

Amit Kharat (Co-Founder), Ashutosh Pathak (CTO, Ex-Microsoft), Viraj Kulkarni (Chief Data Scientist), and Ritika Taki (Strategy and Planning) are also members of the leadership team.

DeepTek had previously received funding from NTT DATA, a Japanese IT firm, Nobori Ltd, a Japanese radiology solutions company, Doctor-Net Inc, a Japanese teleradiology company, and a few other institutional investors.

DeepTek is one of the few radiology AI companies with cutting-edge medical imaging offerings and a successful track record of commercial adoption, according to Visalakshi Chandramouli, Managing Partner, Tata Capital Healthcare Fund.

Tata Capital closed the transaction with its second healthcare fund. Tata Capital began the process of raising capital for its second fund, with a target corpus of US$200 million, in 2018. This fund has recently closed deals for the firm.

Last year, the fund made an investment in the diagnostics company Atulaya Healthcare and acquired a minority stake in the Chennai-based pharmaceutical company Linux Laboratories.

The Tata Capital Healthcare Fund seeks long-term capital appreciation by investing in healthcare companies through private equity growth capital.

Its investment strategy is based on capitalizing on opportunities in India’s fast-growing healthcare sector over the next decade. Its fund size ranges from US$5 to US$15 million, with a five-year average holding period.

New age health tech startup, DeepTek has raised US$10 million in its Series A funding round by Tata Capital Healthcare Fund, the healthcare-focused arm of Tata Capital Ltd.

Also, Proactive for Her, a healthtech startup, recently raised US$5.5 million in Series A funding led by Vertex Ventures South East Asia and India, with participation from existing investor Nexus Venture Partners.

With this investment, the startup plans to expand its digital product offerings, expand its online customer base, and open a flagship clinic in Bengaluru.

Human Life Management recently acquired home healthcare startup Care24 for an undisclosed sum in another transaction in the healthtech industry.

Existing investors such as Elevation, IQ, DI, and StartUp Health received cash exits as part of the deal.

The acquisition will also aid the startup’s expansion into other Southeast Asian countries such as Thailand, Vietnam, and Indonesia.

According to Inc42 report, the international expansion will be carried out through a partnership between HLM and Care24.

The newly formed entity will be known as ‘Care24 International,’ and it will be in charge of the company’s international operations.

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