March 2025 renewed the momentum in India’s pharma and healthcare space as funding surged on the back of major late-stage deals

India’s pharma and healthcare sector witnessed a notable rebound in funding activity, reaching $79 million in March 2025, according to Tracxn’s latest industry report. This marks an 81.38 per cent surge compared to $43.5 million in February 2025, highlighting renewed investor confidence—particularly in late-stage ventures.

However, the report also notes that the sector continues to trail behind last year’s performance, with funding down 50.06 per cent from March 2024, when it hit $158 million.

“Late-stage funding rounds largely led the recovery in March,” Tracxn stated in its analysis, with $61.4 million, or 77.8 per cent of total investments, funnelled into mature companies. Meanwhile, seed-stage deals accounted for $16.8 million, comprising 21.3 per cent of the month’s funding activity.

Among the key fundraisers in March were Truemeds, which secured $44 million, and DCDC (Delhi-based dialysis care chain), which raised $17.4 million. These two deals alone contributed to over 77 per cent of the total capital raised during the month.

Accel, Blume Ventures and Rainmatter emerged as the most active investors, continuing to back innovation-led growth in the pharmaceutical and healthcare ecosystem.

Tracxn’s report also observed that while deal volumes remained relatively stable, investor sentiment appears to be shifting towards scalability and sustainable growth, especially in health tech and digital-first pharma platforms. The report suggests that upcoming quarters may see a more significant tilt towards growth-stage investments and strategic consolidation as the sector adapts to changing market dynamics.