A patient consults a doctor online for a fever. Minutes later, the app offers medicines and a discounted blood-test package. Convenient, certainly. But was the test necessary, or was it simply another sale?
India's HealthTech companies spent a decade building this journey. Consultations brought patients in; medicines, diagnostics and repeat orders offered the chance to make money. Now the National Medical Commission (NMC) is questioning some of the incentives behind it. Its October 6 guidelines restrict paid doctor rankings, referral commissions and promotions encouraging unnecessary treatment. They do not ban online healthcare, but they draw an important line between medical advice and selling products.
There is a financial reason the industry took this route. Online consultations are difficult to make profitable when patients expect low fees and doctors must be paid. Add pharmacy orders and lab tests, and the economics look better. Investors bought the promise. Indian HealthTech funding reached $2.62 billion in 2021, before falling to $447 million in 2025 as doubts about profitability grew.
The company numbers explain why. PharmEasy parent API Holdings reported ₹6,619 crore in FY26 operating revenue but still lost ₹520 crore. Practo, with a different business mix, reported ₹234 crore in FY25 revenue and ₹15 crore in operating EBITDA. Bringing healthcare online does not automatically make it a good business.
There is an even more worrying question about prescriptions. In February, chemists' body AIOCD alleged that some online sellers accepted fake, AI-generated prescriptions. These allegations have not been established against major platforms, and traditional chemists have commercial interests of their own. Still, if an unverified prescription can unlock a sale of restricted medicines, a medical safeguard has become a checkout formality. The NMC separately clarified in October that doctors may authenticate reports remotely, but only after genuinely reviewing them.
The incentives behind all this deserve attention. A doctor recommending fewer tests might be giving better care while generating less revenue for the platform. Traditional hospitals and laboratories face similar conflicts, but technology can spread a bad practice far faster.
Digital healthcare has made medical help easier to access. It should not turn a doctor's prescription into a sales target.
Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.
“Sapne Dekhe Bade Bade”: One Planet Launches Fund With Japanese Anchor
One Planet Partners has launched its maiden India-focused private equity fund with a Rs 3,000 crore target.
Japan's Sumitomo Mitsui Trust Bank has invested in the fund manager and joined as an anchor limited partner.
Read more here
“Dekho Ajooba Ikkiswi Sadi Ka”: Avendus Forecasts $3T AI Revolution for Indian Factories
Avendus Capital says India's new-age manufacturers could benefit from a $3 trillion global AI-infrastructure investment cycle, with more than 80% of that capital still to be deployed.
It projects India's semiconductor consumption at $106.5 billion by 2030 and the space economy at $44 billion by 2033.
Read more here
“Tum Aage Badho, Hum Tumhare Sath Hain”: CloudSEK Launches Cybersecurity Incubator
CloudSEK has launched Launchpad, a 12-week incubation programme for early-stage cybersecurity startups.
Its first cohort will select ten companies, with each eligible for up to $5,000 in AI-model credits; applications close on November 20.
Read more here
“Dosti Ko Rishtedari Mein Badal De”: Inkle Buys Finally's Bookkeeping Arm
Bengaluru-built accounting platform Inkle has acquired Finally's bookkeeping division through an undisclosed all-cash asset purchase. It is Inkle's first acquisition and brings Finally's bookkeeping clients onto Inkle's software without changing their service teams.
Around 100 Finally employees across the Americas will join Inkle's 60-person Bengaluru team.
Read more here
“Kaafi Phaila Hua Dhandha Hai”: Fortis Buys Suguna Hospital Business
Fortis Healthcare is acquiring the business operations, land and building of Bengaluru's 110-bed Suguna Hospital for about Rs 277 crore.
The deal is Fortis's second Bengaluru hospital purchase since its Rs 430 crore People Tree acquisition in December.
Read more here
“Achha Toh Hum Chalte Hain”: Equitas CEO P N Vasudevan Resigns
Equitas Small Finance Bank CEO P N Vasudevan has resigned after investors raised conflict-of-interest concerns about his daughter running Unico Housing Finance.
The bank's shares fell as much as 20% after the announcement.
Read more here
“Kuch Kar Dikhane Ka Junoon”: Jagruti Plans 40-Plus Centres
Pune-based Jagruti Rehabilitation Centre has raised Rs 28 crore in a Series A round led by Alkemi Venture Partners. It currently operates more than 19 centres with over 1,600 beds across nine cities.
Jagruti plans to build more than 40 centres and 4,000 beds across Tier 1 and Tier 2 cities over the next three to four years.
Read more here
Jagruti Rehabilitation Centre has raised Rs 28 crore in a Series A round led by Alkemi Venture Partners.
Read more here
Docterz has raised Rs 5 crore from about 35 investors, including Vineeta Singh, Avnish Anand and 20 doctors who use its platform.
Read more here
Physical-AI startup Tensrai has raised Rs 3.4 crore in pre-seed funding from India Accelerator, Finvolve, Hyderabad Angels and individual investors.
Read more here
Odisha underwater-robotics startup, Coratia Technologies has raised Rs 18 crore in a bridge round led by MGF Kavachh.
Read more here
Precision-manufacturing startup, Venttup has raised $3 million in a pre-Series A round led by Rainmatter and Unicorn India Ventures.
Read more here
Ace Blend has raised $9.91 million in a Series A2 round led by 3one4 Capital, with Fireside Ventures also participating.
Read more here
Viridian Ingni Propulsion has raised Rs 1.47 crore in a pre-seed round led by Inflection Point Ventures, alongside Rs 53.75 lakh in grants.
Read more here
Skincare startup, ISLAND Beauty has raised Rs 2.58 crore from AJ VC.
Read more here
