JakartaPost-Nov 17, 2023
Despite significant growth in recent years, Indonesian healthcare technology start-ups are facing fresh challenges stemming from market consolidation and diminishing funding opportunities. Venture capital firms had expressed cautious optimism in the country’s healthtech industry, urging start-up firms to adopt more realistic strategies to survive and secure more capital in today’s landscape. “Several of the healthtech start-ups that we spoke to offered good propositions, but we suspect that they may face challenges in monetization,” Vertex Ventures partner for Southeast Asia and India Gery Khoeng told The Jakarta Post on Thursday. “Their competitive edge is narrow, allowing rivals to encroach on their space, potentially leading to challenging unit economics.” Vertex Ventures general partner for Southeast Asia and India Carmen Yuen said that given the current funding environment, healthcare start-ups might want to take another look at their valuation, especially if it was priced at generous multiples in the earlier funding rounds. “If they are valued above market average and are unable to deliver according to plan, then it is no surprise that they will require an even longer time to raise [more funding],” she said. Moreover, while the sector was not nascent, healthcare was a very tough space to break into, given that the industry is governed and subject to regulatory guidelines, Carmen said. Healthtech Indonesia Association (AHI) secretary general Niko Azhari Hidayat said on Monday that the industry is focusing on uniting all affiliated stakeholders, such as start-ups, investors and the government, among many others, hoping to establish a stronger ecosystem. Read more at: https://www.thejakartapost.com/business/2023/11/17/ri-healthtech-industry-faces-fresh-challenges-despite-past-growths.html.
