India’s healthcare system faces structural challenges, including overworked medical staff and insufficient healthcare access, especially in rural areas. Health-tech startups are now deploying cutting-edge technology like artificial intelligence (AI) to address these chronic gaps. Inspired by personal experiences and innovative backgrounds, entrepreneurs like Mudit Dandwate are leading these efforts to reshape healthcare in the world’s most populous country. 

Dandwate, a former consultant for race car manufacturers like McLaren, co-founded Dozee in Bengaluru in 2015. His journey into health-tech began after nearly losing an uncle to undiagnosed sepsis in an Indian hospital. Drawing on his knowledge of Formula 1 sensors that monitor micro-vibrations, Dandwate developed a contactless patient monitoring system that detects vital signs such as heart rate, respiration, and sleep patterns through sensor sheets placed under mattresses. These sensors offer 98% accuracy, helping hospitals improve real-time patient care while easing the burden on their staff. 

Dozee’s services come at a high cost—over ₹5,00,000 ($5,947) for integration into hospital systems. The company has already partnered with more than 250 hospitals in India and 55 in the US, managing over 16,000 beds. With $35 million in raised capital, Dozee plans to secure more funding in the next six months to expand operations further, especially in the US market. 

The growing need for innovative solutions in India stems from a severe shortage of medical professionals. The World Health Organization (WHO) reports that India has only 7.3 physicians per 10,000 people, far below the global average of 17.2. This scarcity is more pronounced for specialists, especially in rural areas, where the shortfall reaches 80%. Health-tech startups aim to mitigate this issue by optimizing the use of existing resources. 

CloudPhysician, founded by former Cleveland Clinic intensivists Dhruv Joshi and Dileep Raman, offers remote ICU monitoring services. Operating from Bengaluru, the company’s 120-member team monitors ICUs across 23 states in India, from urban centers like Mumbai to smaller cities like Deoghar in Jharkhand. CloudPhysician recently raised $10.5 million to enhance its operations. 

One of CloudPhysician's key collaborators is Paramount Hospital, a 40-bed medical facility located in northern Mumbai. Due to limited resources, Paramount previously referred critical patients to other facilities with better monitoring capabilities. However, the partnership with CloudPhysician has enabled the hospital to retain more critical cases, with average ICU stays reduced from five days to three. 

The COVID-19 pandemic accelerated the demand for remote healthcare services, leading to the rise of companies like PharmEasy. However, many startups that thrived during the pandemic have since struggled to maintain valuations as the global economy shifts back toward hybrid healthcare models. While at least 170 Indian health-tech startups have shut down since 2023, firms focusing on sustainable, technology-backed solutions continue to attract investors. 

Despite the challenges, there is significant investor interest in India’s health-tech sector. Firms like TPG Capital and pharmaceutical giants such as Novo Nordisk have invested $3.7 billion into Indian health-related startups since 2022. Bain & Co. projects the Indian healthcare innovation market will grow into a $60 billion opportunity by 2028, led by pharmaceutical services and health-tech ventures. 

AI-powered startups are also addressing specialized healthcare needs. Qure.ai, for instance, raised $65 million in 2024 and leverages AI to detect early signs of conditions like stroke and lung cancer. Similarly, Asia Healthcare Holdings, backed by TPG, has extended neonatal ICU services to remote areas, treating over 1,300 infants in smaller towns through telemedicine solutions. 

Startups like Dozee and CloudPhysician are also expanding internationally to tap into higher-paying markets in the US and the Middle East while keeping their services affordable in India. "Technology allows us to deliver services profitably while keeping them affordable for customers," said Mohit Bhatnagar, managing director of Peak XV Partners.. Founders believe that as India’s middle class and internet penetration grow, the customer base for digital health services will also expand. 

Ultimately, these startups are building advanced technologies to compete globally while addressing India’s healthcare gaps. “You build such strong technology that you compete in the global marketplace,” said Ashwin Raguraman, co-founder of Bharat Innovation Fund. This dual approach is critical to driving profitability while enhancing healthcare outcomes in underserved regions.