Angel Investors Pour Millions into India’s Medical Device Innovation Ecosystem

India’s medical device innovation ecosystem is experiencing a significant boost from angel investors, who are providing crucial early-stage funding to startups developing cutting-edge healthcare solutions.

Notable Investments:

• Noccarc: In February 2024, Pune-based medical device startup Noccarc secured $2 million in a funding round led by the Indian Angel Network (IAN), with participation from Hero Enterprises Chairman Sunil Munjal, IIT Kanpur, SIDBI, and the Technology Development Board. The investment aims to enhance Noccarc’s research and development, market penetration, and distribution network.
• ten3T: Bengaluru-based ten3T, specializing in medical-grade wearable devices, raised an angel round of funding from pi Ventures and other angel investors, including V. Krishna Prasad. The funding supports the development of wearable devices that provide continuous, real-time health monitoring.
• Prodancy Pvt. Ltd.: In November 2024, Prodancy, a MedTech startup focusing on surgical consumables for joint replacement surgeries, raised ₹2.14 crore in a funding round co-led by Campus Angels Network and Keiretsu Forum Chennai, with participation from existing investors such as the Center for Cellular & Molecular Platforms (C-CAMP). This investment is intended to advance innovation in joint replacement surgical consumables.

Impact of Angel Investment:

Angel investors play a pivotal role in India’s medical device sector by:

• Providing Early-Stage Capital: Offering essential funding that enables startups to develop prototypes, conduct clinical trials, and navigate regulatory approvals.
• Offering Mentorship and Networks: Delivering strategic guidance and access to industry networks, facilitating market entry and scaling opportunities.
• Fostering Innovation: Encouraging the development of innovative medical technologies that address unmet healthcare needs, thereby enhancing patient outcomes.

Regulatory Developments:

In July 2024, the Indian government abolished the “angel tax,” a move that has been welcomed by the startup ecosystem. This tax was previously imposed on excess capital raised over fair market value, creating challenges for startups and their investors. The abolition is expected to spur innovation and boost funding for fledgling companies in India’s economy.