Despite a significant dip in funding, India’s oncology sector continues to thrive, showcasing remarkable innovation and resilience. Tracxn’s analysis unveils a dynamic landscape characterized by groundbreaking advancements in AI, robotics, and genomic sequencing. From a peak in 2021, funding has seen fluctuations, with 2023 marking the least funded year. However, early-stage funding has rebounded in 2024, hinting at ongoing momentum. India, with its 94 established companies and notable players like Perfint Healthcare, demonstrates promising potential. Despite challenges, the sector’s evolution and global impact underscore continued interest and support, ensuring a bright future for oncology innovation.
In the fast-evolving realm of oncology, India stands as a beacon of innovation, continually pushing boundaries despite funding challenges. Tracxn’s analysis paints a vivid picture of this landscape, highlighting the sector’s journey marked by groundbreaking discoveries and transformative technologies. Despite fluctuations in funding, the sector remains resilient, fueled by the relentless pursuit of simplified treatments and curative breakthroughs. From AI to genomic sequencing, Indian companies are at the forefront, driving change and making significant strides in cancer treatment methodologies. As we delve deeper into India’s oncology ecosystem, we uncover a narrative of resilience, innovation, and global impact.
Tracxn’s analysis sheds light on the global oncology sector’s trajectory, highlighting groundbreaking innovations and funding trends. With over 5,500 companies worldwide and approximately 4,000 of them funded to date, the sector pioneers advancements in AI, robotics, and genomic sequencing, redefining cancer treatment methodologies.
While significant strides have been made, there’s an acknowledgment of untapped potential, underscoring the persistent need for simplified treatments and curative breakthroughs.
In 2021, the oncology space witnessed a zenith in VC funding, reaching nearly $23.5 billion globally. However, subsequent years, notably 2023, saw a decline, marking it as the least funded year in the past five years, with a total funding of $9.2 billion, indicating a 24% drop from the previous year. As of 2024, the funding stands at $424 million.
Early-stage funding experienced a 30% decline in 2023, totaling $5.6 billion compared to $8 billion in 2022. Late-stage funding remained steady at $3.7 billion in both 2023 and 2022, with the highest recorded in 2020 at $10.6 billion. 2024 has received $160 million in late-stage funding to date.
Seed-stage funding amounted to $384 million in 2023, reflecting a 20% decrease from $479 million in 2022. The most lucrative year for seed-stage funding was 2021, securing $545 million. Q1 2021 emerged as the highest-funded quarter with $7 billion, while Q1 2023 marked the least funded quarter in the last four years.
With 59 funding rounds in 2022 and 2023, the sector recorded 293 $100 million+ rounds to date. Notable funding rounds include Grail’s $1.2 billion in 2018, marking it as the highest-valued funding round. Companies like Caris Life Science, Sana Biotechnology, Abogen Biosciences, and Moderna have raised funds above $500 million. Freenome and Everest Medicines secured $290 million and $280 million, respectively, representing the highest-valued funding rounds in the past two years.
The sector witnessed the emergence of 12 unicorn companies to date, with five achieving unicorn status in 2021, followed by two each in 2022 and 2023. The United States leads the list of top-funded countries with $90.1 billion, contributing over 60% of the total funding share of $136 billion.
Key investors like Orbimed, EIC Fund, and RA Capital Management play pivotal roles in driving the oncology sector. In the last two years, Y Combinator, Alexandria, and Proxima Ventures emerged as top seed investors, while Orbimed, Alexandria, and RA Capital Management led in early-stage investments. RA Capital Management, Arch Venture Partners, and Pfizer have been prominent late-stage investors, reaffirming the collective commitment to advancing innovation in oncology.
Innovative Trends in the Indian Oncology Market
In the dynamic landscape of India’s oncology sector, the latest analysis reveals a compelling narrative of innovation and funding trends. Perfint Healthcare leads with $40.1 million in total funding, followed by Immuneel and Zumutor with $27.4 million and $26.2 million, respectively.
A groundbreaking revelation is the dominance of oncology drugs, securing $27.1 million in funding, spearheaded by players like ImmunoACT and Immuneel. Bengaluru stands out with 20 founded companies, although the overall funding activity is experiencing a yearly decline, indicating a potential shift in focus.
The Indian oncology sector boasts 94 established companies, with 55 successfully securing funding. Funding peaked in 2019, with Bengaluru securing $85.7 million to date. Notable recent funding rounds for Cellogen Therapeutics and ImmunoACT underscore ongoing investor interest and confidence in the sector.
India has seen only one acquisition involving Cipla so far, and just two initial public offerings (IPOs), in contrast to 613 IPOs worldwide.
Despite challenges, the oncology sector in India continues to evolve, leveraging innovative solutions in AI, robotics, and genomic sequencing.
With 12 unicorn companies to date and the US leading with over 60% of the total funding share, the future of oncology innovation in India appears promising. Top investors like Orbimed, EIC Fund, RA Capital Management, Y Combinator, Alexandria, and Proxima Ventures underline continued interest and support for groundbreaking ideas and solutions in the oncology startup ecosystem. Global initiatives such as the Cancer Grand Challenges program foster innovation by offering substantial funding for groundbreaking cancer research. Organizations like the American Society of Clinical Oncology (ASCO) contribute to this momentum by providing grants to support scientists at all career stages.
