India to Launch INR 1,000 Crore MedTech Investment Fund to Strengthen Healthcare Innovation
India’s medical technology sector is set to receive a significant boost with the launch of a dedicated INR 1,000 crore investment fund aimed at supporting innovation and manufacturing in healthcare technology.
The initiative is expected to strengthen India’s domestic medtech ecosystem, reduce dependency on imported devices, and accelerate the development of indigenous healthcare technologies in line with the government’s Make in India vision.
Launch of MedArtha Capital
The new fund, MedArtha Capital, is being launched by a group of investors and industry experts led by Ganesh Sabat, former CEO of Sahajanand Medical Technologies.
Talk to Medical Device Experts
The fund will focus on growth stage companies working on advanced medical technologies and healthcare devices. It aims to support companies that already have products in the market but need financial backing and strategic guidance to scale operations.
MedArtha Capital has also received approval from the Securities and Exchange Board of India, allowing it to begin investment activities.
Government Support Through RDI Scheme
Reports suggest that the government may contribute around INR 500 crore to the fund through its Research, Development and Innovation (RDI) scheme.
The RDI initiative, launched last year with a total corpus of INR 1 lakh crore, aims to accelerate investments in research, development, and innovation across critical sectors, including healthcare and medical technology.
MedArtha Capital has already applied under the scheme, which allows eligible entities to receive investment support of up to 50 percent of the total fund size.
Focus on Reducing Import Dependency
India currently depends heavily on imports for several advanced medical devices, including MRI machines, CT scanners, cathlab systems, and neurovascular equipment.
The new investment fund aims to address this gap by strengthening domestic manufacturing capabilities and supporting companies developing high end medical technologies within India.
Investment Strategy and Target Companies
The fund is expected to deploy capital over the next two to three years and invest in approximately 10 to 12 high growth medtech companies across the country.
According to Ganesh Sabat, the fund will mainly target small and mid sized medtech companies with annual revenues between INR 30 crore and INR 80 crore. These companies typically have established products but require capital and operational expertise to scale manufacturing and expand into larger markets.
In addition to funding, the initiative also plans to strengthen contract development and manufacturing capabilities within the medtech industry.
About Operon Strategist
Operon Strategist is a global regulatory and business consulting firm that supports medical device manufacturers, startups, and healthcare companies in bringing their products to market. The company provides services such as regulatory approvals, quality management systems, medical device registration, and turnkey project consulting for manufacturing facilities. With expertise in global regulatory frameworks, Operon Strategist helps businesses navigate complex compliance requirements and successfully commercialize innovative healthcare technologies.
