So far, Indian VCs have shown a primary interest in plonking vast sums of money on a handful of e-commerce companies, certain that when the market picks up, their horses will emerge uncontested winners.
So, it’s always refreshing to see investments that deviate from these unimaginative plays, such as the staggering US$110 million that General Atlantic has put into Citius Tech for an alleged 30 percent stake according to this report.
Founded by Rizwan Koita (an ex-McKinsey hand who successfully started and sold his previous company Transworks, a business process outsourcing company, to the Aditya Birla Group) and Jagdish Moorjani in 2005, Citius is poised to surf the next biggest wave in IT investments both in India and globally—namely the intersection of healthcare and technology.
The company, which won the Red Herring technology award in 2011, offers a wide range of healthcare technology services according to a prior Mint article "including healthcare software development, healthcare interoperability, business intelligence and analytics, among others." According to the company, it grew at a 51% clip in 2013.
Citius could benefit not just from President Obama’s healthcare reform initiatives in the US—where analytics and cloud applications become crucial—but also in the massive potential at home in India. The article points out that India's market is estimated to be a whopping US$78 billion and is expected to step up its growth rate from 11 percent to 20 percent as India accelerates its pace of development.
Mint also points to India's woeful per capita spending on healthcare at just US$50, far behind China’s US$221, and dwarfed by the the UK (US$3,500) and the US (US$8,400) according to World Bank figures, which means that healthcare spending, especially on IT has nowhere to go but up here.
The deal will also apparently help the company access the European, Middle and South East Asian markets with its services.