India is on the brink of a demographic shift, with its elderly population set to surge from the current 138 million to an estimated 194 million by 2031. According to the Report of Technical Group on Population Projections, the population of senior citzens by the year 2036 will be 22.7 crore amounting to 14.9% of the total population.

Despite the existence of approximately 70 startups in the eldercare space, experts contend that this number is insufficient to meet the escalating needs of the aging population. The statistics paint a compelling picture - while the general population has grown by 18% (2001-11) and 12.4% (2011-21), the elderly population has surged by 36% in each of these decades.

Challenges and Opportunities For Startups in Eldercare

Recognizing the pressing challenges faced by the elderly, the Indian government is keen on promoting startups to address the gaps in comprehensive eldercare. The 'Elderly in India 2021' report by the Social Statistics Division of the National Statistical Office reveals that in 1961, a mere 5.6% of the population was aged 60 or older. Fast forward to 2021, and this figure has doubled to 10.1%. Notably, of the 138 million elderly individuals in India, 71 million are female, and 67 million are male.

Government's Initiatives and Support

The UNFPA's India's Ageing Report 2023 highlights the government's commitment to fostering innovative solutions for the challenges faced by the elderly. Aiming to promote a "silver economy" through equity participation in eldercare startups, the government has initiated the Seniorcare Ageing Growth Engine (SAGE) project. This project seeks to stimulate the creation of a one-stop access point for elderly care products and services by supporting credible startups.

How Does SAGE Support Startups in Elderly Care?

(a) Innovative Ideas and Equity Support: The government invites innovative ideas for elderly care through a transparent process, supporting startups with equity.

(b) Youth Engagement: Encouraging students in premier educational institutions to tackle elderly-related issues and devise innovative solutions.

(c) Institutional Support: Encouraging banking institutions to provide financial backing for ventures addressing the needs of the elderly.

Emergence of Elderly Care Startups in India

As the demographic landscape of India undergoes a significant shift towards an aging population, startups focusing on eldercare services are witnessing a surge in popularity and investor interest. According to Tracxn, funding in Indian elder care companies soared to USD 23.8 million in 2023, a substantial increase from USD 13.4 million the previous year and USD 1.5 million in the year before that.

Categories of Eldercare Startups

·       Eldercare startups in India can be broadly categorized into four segments:

• ·       Senior Living: Real estate-focused ventures providing living spaces tailored for seniors.
• ·       Manpower-Focused: Assisting in hiring attendants, nurses, and other caregiving personnel.
• ·       Care Homes: Specialized care facilities catering to specific needs such as dementia care.
• ·      Ageing in Place: Offering services that enable seniors to stay at home while receiving necessary support.

Some of the startups in the elderly care sector are:

Tech-Enabled Solutions for Eldercare

In this evolving landscape, startups like SeniorWorld, Emoha, GenWise, 60Plus India, Alserv, ElderAid Wellness, and GoodFellows are seizing the opportunity. Emoha, for instance, has witnessed remarkable growth, expanding its user base from 9,800 to 60,000 elders within a year, with a retention rate exceeding 90%. The eldercare segment is further divided into tech-enabled and non-tech services, encompassing assisted living facilities, senior care homes, in-home care assistants, and retirement housing.

Investor Confidence and Growth Prospects

Investors are increasingly optimistic about the growth potential of the eldercare segment. Venture capital firms too identify a rising demand for senior housing, driven by factors such as increased life expectancy, lower mortality rates, nuclear family dynamics, and changing social perceptions about senior living.

Tech-Driven Transformation Post-Pandemic

The pandemic has catalyzed a fundamental shift in consumer behavior, creating opportunities for tech-enabled eldercare services. Startups like GenWise have leveraged this shift by offering personalized services through mobile apps, including personalized greetings, relevant short-form video content, online advisors for companionship, and even features like viewing multiple bank passbooks and medicine reminders.

Government's Push for Eldercare Innovation

The government's push for eldercare innovation, exemplified by the SAGE project, reflects a broader recognition of the growing needs of the elderly.

The surging elderly population in India necessitates an urgent and comprehensive response. While startups are stepping up to address the gaps in eldercare services, the government's initiatives, along with increasing investor confidence, signal a positive trajectory for the sector. As India moves toward a future where the elderly constitute a significant portion of the population, the collaborative efforts of startups, government, and investors are crucial to ensuring a dignified and supportive environment for the aging population.

Join Our Thriving Entrepreneurial Community

Follow TICE News on Social Media and create a strong community of Talent, Ideas, Capital, and Entrepreneurship. YouTube  | Linkedin | X (Twittrer) | Facebook | News Letters