Sector sees over 95% month-on-month decline as investor caution rises
India’s pharma and healthcare startup ecosystem witnessed a sharp funding decline in June 2025, reflecting growing investor caution amid global economic uncertainty. According to PrivateCircle Research, healthcare and pharma startups collectively raised only ₹60 crore (~$7.2 million) across five deals in June, marking a 96.5% drop compared to May 2025, when the sector secured over ₹1,735 crore (~$210 million) in 11 deals.
Key Highlights of June 2025 Healthcare Funding:
- Total Deal Value: ₹60 crore ($7.2 million)
- Number of Deals: 5 (down from 11 in May)
- Largest Deals: Primarily seed and pre-Series A rounds in health-tech platforms and pharma logistics startups.
- Sector Focus: AI-enabled pharma supply chains, telemedicine, and mental wellness solutions.
“This drop highlights a temporary market correction, with investors adopting a wait-and-see approach before deploying larger capital into healthcare innovation,” stated analysts at PrivateCircle.
Factors Driving the Slowdown
- Global interest rate hikes and economic uncertainty dampening investor sentiment.
- A cautious approach towards healthtech valuations, especially post-pandemic.
- Market recalibration following aggressive investments in Q1 and Q2 2025.
Long-Term Outlook Remains Positive
Despite the short-term dip, the Indian healthcare startup space is expected to regain momentum in the second half of 2025, fueled by:
- Rising demand for digital health solutions and hospital infrastructure tech.
- Continued focus on AI-driven drug discovery, remote diagnostics, and health insurance tech.
- Government support through initiatives like Ayushman Bharat Digital Mission (ABDM).
India’s HealthTech Sector: A Key Growth Driver
With India’s healthcare market projected to reach $638 billion by 2030, startups addressing affordable care access, chronic disease management, and hospital tech automation remain attractive to both domestic and global investors.
Source: Express Healthcare – Pharma and healthcare start-up funding falls in June 2025
