India to Launch INR 1,000 Cr First Dedicated MedTech Investment Fund to Boost Healthcare

The fund is expected to support growth-stage companies working on advanced medical technologies and healthcare devices.

India’s medtech sector is set to receive a dedicated INR 1000 Cr investment aimed at strengthening medtech innovation and manufacturing.

The initiative seeks to boost India's indigenous technology ecosystem and accelerate the growth of indigenous healthcare technologies, and is aligned with the government's ‘Make in India’ initiative.

The proposed fund, named MedArtha Capital, is being launched by a group of investors and industry veterans led by Ganesh Sabat, former CEO of Sahajanand Medical Technologies (SMT).

The fund is expected to support growth-stage companies working on advanced medical technologies and healthcare devices.

The fund aims to address India's significant import dependency in advanced medical devices like MRI machines, CT scanners, and critical cathlab and neurovascular equipment.

Recently, MedArtha Capital has also secured approval from the Securities and Exchange Board of India (SEBI).

As per reports, the government is set to invest approximately INR 500 crore in the fund through its Research, Development, and Innovation (RDI) scheme.

MedArtha Capital has already submitted an application under the scheme, which allows eligible entities to receive investment support of up to 50 percent of the total fund size.

The RDI initiative, announced last year with a corpus of INR 1 lakh crore, aims to accelerate investments in research, development, and innovation across key sectors.

The funding is expected to be deployed over the next two to three years and will focus on investing in 10 to 12 high-growth medtech companies across India.

Commenting on the initiative, Ganesh Sabat stated that the fund will primarily target small and mid-sized medtech companies that have established products but require capital and operational expertise to scale their manufacturing capabilities and expand their market presence.

The strategy also includes building contract development and manufacturing capabilities in the medtech sector.

Sabat further noted that the newly proposed fund will operate as a scale-up platform focusing on companies with annual revenues between INR 30 crore and INR 80 crore.

By providing both capital and strategic guidance, the initiative aims to help these companies strengthen their technological capabilities and expand production.

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