India’s medical technology sector is poised for a significant push with the creation of the country’s first investment fund dedicated entirely to medtech. The ₹1,000 crore fund has been initiated by a group of investors and industry leaders headed by Ganesh Sabat, the former CEO of Sahajanand Medical Technologies (SMT). The initiative is designed to support innovation, strengthen domestic manufacturing, and complement the government’s Make in India program.
SEBI Clears MedArtha Capital
The newly formed investment platform, MedArtha Capital, has received regulatory clearance from the Securities and Exchange Board of India (SEBI). Over the next two to three years, the fund intends to deploy its capital into around 10–12 fast-growing medtech firms operating in India.
Sabat explained that the focus will be on smaller companies that show strong potential but require funding and operational guidance to expand production and scale their business.
The Indian government may also become a participant in the fund. Around ₹500 crore could be invested through the Research Development and Innovation (RDI) scheme.
MedArtha Capital has already applied under the program. The scheme allows approved applicants to receive government investment of up to half the total fund size. Announced last year with a corpus of ₹1 lakh crore, the RDI initiative is aimed at boosting research, development, and innovation across strategic industries.
Unlike traditional venture capital funds that focus on early-stage startups, MedArtha Capital will operate as a growth-stage platform. Its investments will target companies with annual revenues ranging from ₹30 crore to ₹80 crore.
The goal is to help such firms increase manufacturing capacity, strengthen technology capabilities, and accelerate their expansion.
A key objective of the fund is to reduce India’s reliance on imported medical equipment. According to reports, MedArtha Capital plans to invest in segments where imports dominate, including MRI machines, CT scanners, cathlab systems, and neurovascular devices used to treat stroke and heart failure.
Encouraging local production in these areas could significantly strengthen the country’s healthcare supply chain. The initiative also seeks to address another major gap in India’s medtech ecosystem—contract development and manufacturing. At present, specialised manufacturing platforms for medical devices are limited in the country.
MedArtha Capital aims to support companies that can build scalable manufacturing infrastructure capable of serving both domestic demand and export markets.
In the coming years, initiatives like this could play a crucial role in shaping India’s medical technology landscape. By providing capital, operational expertise, and manufacturing support, the fund is expected to help promising medtech companies scale faster. Ultimately, it may strengthen domestic capabilities, reduce reliance on imports, and position India as an emerging global hub for medical device innovation and production.
(The above image is AI-generated and is for illustrative purposes only)