Medical supply chain platform Medikabazaar—which is seeking to steady itself after a governance scandal late in 2023 led to a board overhaul—is looking to raise around ₹450 crore (about $50 million) in funding from existing and new investors as it plans to expand its footprint, the company's CEO told Mint.
"The equity fundraise is likely to see participation from existing investors Creaegis, British International Investment, HealthQuad, Ackermans & van Haaren, and Rebright Partners," Dinesh Lodha said. "We are also trying to bring in new private equity or individual investors who are aligned in the healthcare and related space."
Medikabazaar plans to close the round before the end of the current fiscal year, but that is subject to investor closures and agreements, Lodha said.
The company had last raised $65 million from a clutch of investors in a Series D round in 2022. It was reportedly valued at around $700 million back then. When asked, Lodha did not specify whether the current round would value the company below or above $700 million.
Ebitda turns positive
While the company has not filed its financials for fiscal 2025, Lodha told Mint that the company has registered a topline of ₹1,600 crore for the full year, and was on track to close the 2026 fiscal with a revenue of ₹2,100 crore. "Beyond this, we are looking at a ₹3,000 crore topline for fiscal 2027," he guided.
The company claims to have turned Ebitda (earnings before interest, taxes, depreciation and amortization) positive with a ₹5 crore figure for FY26, against an Ebitda loss of around ₹150 crore in FY25.
The company claims that the fundraising efforts and growing income shows a stabilizing business trajectory following a period of governance turmoil.
Medikabazaar was founded by Vivek Tiwari and Ketan Malkan in 2015 and enabled hospitals and medical establishments to discover supplies, compare specifications and prices in real-time. Products on the B2B (business-to-business) platform include hospital devices, materials, medical consumables and dental tools, among others.
The governance scandal
However, a whistleblower complaint in December 2023 accused Tiwari and Malkan of financial misconduct. A forensic audit by PwC later flagged inflated sales, phantom inventory, and round-tripping. PwC then resigned as auditor, and the board terminated Tiwari 'for cause' in August 2024.
The board overhaul saw the management team change, with Lodha, a former executive at Samsung India and Healthium Medtech, to enforce stricter governance standards and stabilize the balance sheet.
Both Tiwari and Malkan challenged their ousters in court and their claims are close to an amicable settlement, Lodha told Mint.
As a result of the fallout, Series C investors, including Creaegis and HealthQuad, had raised an indemnity claim worth ₹280 crore with the company. Indemnity claims are provisions in venture capital and private equity transactions that allow investors to seek financial payments if later audits reveal misrepresentations or breaches of disclosure requirements.
The indemnity claims, one must note, are from a common set of investors who are also likely to participate in the new fundraise. These claims are now likely to be withdrawn parallelly with the closure of ₹450 crore round, Lodha said.
"We have put profitability at the center of our growth strategy now," he said. “This fundraise will finance accelerated digital innovation, deeper category leadership, and enhanced technology capabilities to widen our reach across India’s healthcare ecosystem.”
Consolidating its position
The company plans to utilize the fresh capital to consolidate its position in the fragmented B2B medical supply market, aiming for a billion-dollar scale in the coming years, Lodha said. It currently holds over 40 exclusive partnerships with leading manufacturers and original equipment manufacturers (OEMs).
The timing of the capital raise aligns with a broader expansion in India’s healthcare space. In 2025 alone, overall investment in the sector stood at $8.3 billion across merger and acquisitions and PE/VC investments, with public markets adding another $1.5 billion via initial public offerings and $1.2 billion through qualified institutional placement, according to data from Grant Thornton Bharat.
In 2026, the advisory firm expects continued consolidation in the industry with a focus on non-metro markets. For companies such as Medikabazaar, a Grant Thornton report expects new deals to enable a convergence of medtech and digital health platforms, which will then drive integrated care models. "With regulatory clarity and technology adoption improving, the sector is poised for another year of robust, capability-driven deal-making," it said.