HealthQuad raises Rs 550 crore, eyes Rs 1,700 crore fund

Quadria-backed healthcare venture capital firm HealthQuad has secured commitments of Rs 550 crore for its third fund, where it looks to raise Rs 1,700 crore to back early-growth companies across healthtech, medtech, biopharma technology and new healthcare delivery models.

The fund has a greenshoe option that could take the total corpus to Rs 2,500 crore, Sunil Thakur, cofounder of HealthQuad and partner at Quadria Capital, told ET. HealthQuad expects to close the fund by the middle of next year, he said.

The commitments have come from existing investors — domestic and global — in earlier funds as well as new limited partners, HealthQuad partner Rahul Agarwal told ET. The fund has committed its first investment in Lifesigns, an AI-powered remote patient monitoring platform.


HealthQuad Fund III is being managed by HealthQuad Advisors, a vehicle fully owned by Quadria Group through Amit Varma, Abrar Mir and Thakur. The fund comes after a mutual separation of Kois and Quadria in HealthQuad in 2025. The platform continues to co-manage Fund I and Fund II and has retained most of the team that managed its earlier funds and added Agarwal and Namit Chugh to its leadership.

HealthQuad was incubated in 2016 as Quadria’s early-growth vehicle for technology-led healthcare companies. Its first two funds have backed more than 18 companies, including Qure.ai, Wysa, Redcliffe Labs, GoApptiv, Cureskin, Strand Life Sciences, THB, Ekincare and Medikabazaar.

Thakur and Agarwal declined to share fund-level return metrics such as DPI (Distributed to Paid-In, or realised returns to investors) or TVPI (Total Value to Paid-In), citing confidentiality, but said HealthQuad has returned capital through exits.

The new fund comes as Quadria has built a larger healthcare private equity platform.

Thakur said Quadria will focus on conventional healthcare businesses such as hospitals, eye care, dialysis and pharmaceutical manufacturing, while HealthQuad will back technology-led models such as AI-led diagnostics, remote patient monitoring, digital tools for hospitals and clinicians, medtech, bio-pharma technology and newer healthcare delivery platforms.

“Quadria is going to support the conventional form of healthcare. HealthQuad is going to support the new-age healthcare model,” Thakur said.

Agarwal said HealthQuad is a standalone strategy with a separate fund structure, limited partner base, investment focus and team, while benefiting from Quadria’s healthcare network across India, Southeast Asia and other markets.

Quadria and HealthQuad could invest in the same company at different stages, but that is not the design of the platform, he said. Any such deal would need approvals from limited partners and governance boards on both sides.

The fundraise comes after the 2020-22 healthtech cycle, when several digital healthcare models drew investor interest but later struggled to prove sustainable demand, clinical relevance and unit economics.

Agarwal said HealthQuad does not back transient themes, but companies that can become category leaders. “Alpha returns come from backing market leaders, not the 10th or 20th company in a segment,” he said.

HealthQuad studies companies for two to four years before investing, and about 90% of its deals are proprietary, Agarwal said. Its investment team, clinical advisory board and operating experts assess whether a model is clinically relevant, regulatory-compliant and useful for healthcare enterprises over the long term.

“It’s a PE approach, and our diligence is also of the same grind and rigour,” Thakur said.

That lens is also shaping its view on artificial intelligence. Agarwal said the fund will back only “clinical grade AI” approved or validated by Indian, US or European regulators, and trusted by clinicians and healthcare enterprises. Such asset-light models can travel better to global markets than local, asset-heavy businesses, he said, citing Qure.ai and Wysa.

The governance filter has become sharper for investors after a series of blow-ups across the startup ecosystem. HealthQuad’s portfolio has included Medikabazaar, a business-to-business medical supplies platform that has faced allegations of financial misreporting and an indemnity claim from some investors.

The firm is not looking to replace traditional healthcare, Agarwal said, but to back models that are assistive, supplementary and complementary to existing healthcare infrastructure.