HealthQuad, the healthcare-focused venture capital platform backed by Quadria Capital, has secured commitments worth Rs 550 crore for its third investment fund as it aims to build a corpus of Rs 1,700 crore to support early-growth healthcare companies across India and other markets.
The new fund, HealthQuad Fund III, will focus on technology-driven healthcare businesses operating in areas such as healthtech, medtech, biopharma technology, artificial intelligence-led healthcare solutions, and emerging healthcare delivery models. The fund also includes a greenshoe option that could increase the total corpus to Rs 2,500 crore.
According to HealthQuad cofounder and Quadria Capital partner Sunil Thakur, the firm expects to achieve the final close of the fund by the middle of next year. The commitments secured so far have come from a mix of existing domestic and international investors from previous HealthQuad funds, along with new limited partners.
First Bet from the New Fund
HealthQuad has already committed the first investment from Fund III into Lifesigns, a company that develops AI-powered remote patient monitoring solutions. The investment reflects the firm’s continued focus on technology platforms that address healthcare delivery challenges and improve clinical outcomes.
The fund is managed by HealthQuad Advisors, a platform fully owned by the Quadria Group through Amit Varma, Abrar Mir and Sunil Thakur. The launch of Fund III follows the mutual separation of Kois and Quadria within HealthQuad in 2025.
Despite the restructuring, HealthQuad continues to co-manage its first two funds and has retained much of the team responsible for earlier investments. The leadership team has also been strengthened with the addition of partners Rahul Agarwal and Namit Chugh.
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Expanding a Healthcare Investment Legacy
HealthQuad was established in 2016 as Quadria’s early-growth investment platform focused on technology-led healthcare businesses. Through its first two funds, the firm has invested in more than 18 companies spanning diagnostics, digital health, healthcare software and biotechnology.
Its portfolio includes notable healthcare startups such as Qure.ai, Wysa, Redcliffe Labs, GoApptiv, Cureskin, Strand Life Sciences, THB, Ekincare and Medikabazaar.
While HealthQuad has already returned capital to investors through portfolio exits, the firm declined to disclose fund-level performance indicators such as Distributed to Paid-In (DPI) and Total Value to Paid-In (TVPI), citing confidentiality obligations.
Clear Division Between Traditional and Digital Healthcare
The launch of Fund III comes as Quadria continues to expand its broader healthcare private equity platform.
Under the current structure, Quadria and HealthQuad will operate with distinct investment strategies. Quadria will focus on traditional healthcare sectors, including hospitals, eye care, dialysis services and pharmaceutical manufacturing. HealthQuad, on the other hand, will concentrate on technology-enabled healthcare businesses and innovation-driven models.
According to the firm’s leadership, HealthQuad functions as an independent investment strategy with its own fund structure, investor base, investment mandate and operating team, while continuing to benefit from Quadria’s healthcare network across India, Southeast Asia and other markets.
Although both platforms could potentially invest in the same company at different stages of growth, any such transaction would require approvals from investors and governance bodies on both sides.
Investing Beyond Market Trends
The new fund arrives at a time when healthcare investors are becoming increasingly selective following the rapid growth and subsequent challenges faced by several healthtech businesses during the 2020–2022 investment cycle.
HealthQuad says its investment approach prioritizes companies capable of becoming long-term category leaders rather than businesses built around short-term market trends. The firm typically studies potential investments for two to four years before committing capital, with a large proportion of its investments sourced through proprietary channels.
Its evaluation process combines inputs from the investment team, clinical advisory board and operating experts to assess clinical relevance, regulatory compliance and long-term value creation for healthcare providers and enterprises.
Selective Approach to Artificial Intelligence
Artificial intelligence remains a key area of interest for the firm, but HealthQuad plans to focus only on clinical-grade AI solutions. These are technologies that have received approval or validation from regulators in India, the United States or Europe and have demonstrated acceptance among clinicians and healthcare organizations.
The firm believes such asset-light technology businesses have stronger potential for international expansion compared with healthcare models that depend heavily on physical infrastructure. Companies such as Qure.ai and Wysa are examples of businesses that have successfully expanded beyond domestic markets.
Governance at the Centre of Investment Decisions
Governance standards have become an increasingly important consideration for investors across the startup ecosystem, particularly after several high-profile corporate governance concerns in recent years.
HealthQuad’s portfolio has included Medikabazaar, the business-to-business medical supplies platform that has faced allegations related to financial misreporting and indemnity claims from certain investors.
Despite the evolving healthcare technology landscape, HealthQuad maintains that its objective is not to replace conventional healthcare systems. Instead, the firm aims to support solutions that complement and strengthen existing healthcare infrastructure by improving efficiency, accessibility and clinical decision-making.
With Fund III now underway and its first investment already identified, HealthQuad is positioning itself to back the next generation of healthcare innovators focused on building scalable and sustainable healthcare solutions.
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