Lack Of Domestic Capital Hampering Early Stage Healthtech Startups: IAN’s Padmaja Ruparel

SUMMARY

Ruparel said that India is losing early stage healthtech startups to overseas players due to lack of domestic capital

Besides, the lack of funding is also leading to a slowdown in the healthtech sector, the IAN cofounder said at ‘Startup Mahakumbh’

She advised founders in the sector to focus on finance and business aspects as well, besides technology, to make their ventures viable

India is losing early stage healthtech startups to overseas players due to a lack of domestic capital, Indian Angel Network’s (IAN’s) cofounder Padmaja Ruparel said.

Besides, the lack of funding is also leading to a slowdown in the healthtech sector, Ruparel said at the second edition of the three-day ‘Startup Mahakumbh’ event.

She said that the country needs to retain these entrepreneurs by creating an ecosystem and providing support through public procurement policies, she added.

She advised founders in the sector to focus on finance and business aspects, besides technology, to make their ventures viable. “Unless the entrepreneurs understand this, it’s going to be very difficult to create a viable growth stage company,” the cofounder of the angel network said.

“There is deep science and deep technology that we see in our companies. The missing piece, specifically in this sector’s entrepreneurs, is the business and the finance side. And it’s not possible to build value for yourself unless you understand the business side,” Ruparel added.

She also stressed upon the need for adequate infrastructure for the healthtech sector. “Infrastructure doesn’t only mean equipment and real estate, it means that we need testing capabilities, approval from bodies, and an ability to get a supply chain,” she added.

The comments come at a time when Indian healthtech startups are facing issues in scaling up and funding challenges due to presence of established players, capital incentive nature of the business, and lack of exit opportunities.

Indian healthtech startups raised a mere $0.7 Bn funding last year across 78 deals in 2024. Besides, a number of healthtech startups like Kenko Health, DayTwo, Nintee, and ConnectedH, shut operations in recent times, while others like Breathe Well-being laid off employees.

However, the funding raised by healthtech startups stood at a respectable $301 Mn in Q1 2025, largely on the back of healthtech unicorn Innovaccer’s $275 Mn fundraise.

India’s healthtech sector is home to unicorns like Pharmeasy, Cure.Fit, Innovaccer and Tata 1mg. Overall, more than 11,000 healthtech startups have emerged in the country since 2014.