India’s medical technology (medtech) sector is set to receive a major boost with the launch of its first dedicated investment fund aimed at supporting innovation and manufacturing. A group of investors and industry veterans, led by Ganesh Sabat, former CEO of Sahajanand Medical Technologies (SMT), has launched a ₹1,000 crore growth-stage fund to strengthen the country’s medtech ecosystem and align with the government’s Make in India initiative.
MedArtha Capital Receives Regulatory Approval
The new fund, named MedArtha Capital, recently secured approval from the Securities and Exchange Board of India (SEBI). The fund plans to deploy capital over the next two to three years and will focus on investing in 10 to 12 high-growth medtech companies across India.
According to Sabat, the fund will primarily support small but promising companies that require capital and operational expertise to scale their manufacturing capabilities and expand their market presence.
Government May Contribute Through RDI Scheme
In a significant development, the government may also invest approximately ₹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% of the total fund size. The RDI initiative, announced last year with a ₹1 lakh crore corpus, aims to accelerate investments in research, development, and innovation across key sectors.
Focus on Scaling Growth-Stage Medtech Companies
Unlike early-stage venture funds, MedArtha Capital will operate as a scale-up platform. The fund intends to invest in companies with annual revenues between ₹30 crore and ₹80 crore, helping them expand manufacturing capacity and strengthen their technological capabilities.
Through this strategy, the fund aims to support companies that already have proven products but require financial and operational backing to grow further and compete globally.
Reducing India’s Dependence on Imported Medical Devices
As reported by TOI, the fund will focus on critical medtech segments where India remains heavily dependent on imports. These include MRI machines, CT scanners, cathlab devices, and neurovascular devices used in the treatment of stroke and heart failure.
By supporting domestic manufacturing in these areas, the fund aims to reduce reliance on imported medical equipment while strengthening India’s healthcare infrastructure.
Building Contract Manufacturing Capabilities
In addition to supporting product development, the fund also plans to build contract development and manufacturing capabilities within the medtech sector. Currently, such specialised manufacturing ecosystems remain largely absent in India.
Therefore, MedArtha Capital intends to fill this gap by encouraging companies to develop scalable manufacturing platforms that can support both domestic demand and global exports.
Overall, the initiative marks an important step toward strengthening India’s medtech industry, encouraging innovation, and advancing the country’s ambition to become a global hub for medical device manufacturing.
