February 12, 2026: Healthcare-focused venture capital firm W Health Ventures has announced the initial close of its second fund at ₹550 crore, against a target corpus of ₹630 crore. The Category II Alternative Investment Fund (AIF), valued at approximately $70 million, is expected to reach its final close in the coming weeks.
With Fund II, W Health Ventures is doubling down on its differentiated strategy of building healthcare companies from scratch, rather than investing in externally founded startups.
Focus on Company Creation in Healthcare
Unlike traditional venture capital firms that primarily back existing founders, W Health Ventures follows a company creation model, incubating and building businesses internally to address complex healthcare challenges.
“We are doubling down on company creation,” said Dr. Pankaj Jethwani, Managing Partner at W Health Ventures. “This is one of the only company-creation funds in India focused on building de novo companies that tackle hard-to-solve healthcare problems.”
Under Fund II, the firm plans to build 8 to 10 healthcare companies over the next four years, deploying between ₹30–50 crore per company in phased investments.
Evolution from Seed Investor to Healthcare Builder
W Health Ventures began operations in 2021 as a seed and Series A investor. Over time, it transitioned toward internally incubating ventures. In Fund I, five of its investments were incubated companies, including Nivaan, BabyMD, and ElevateNow.
According to the firm, all companies from Fund I have successfully raised follow-on funding and continue to scale their operations.
The move toward incubation reflects the firm’s belief that India’s healthcare ecosystem requires purpose-built solutions rather than incremental innovation.
Fund II: Oncology and Advanced Psychiatry in Focus
Fund II has already incubated Everhope Oncology, a partnership with Narayana Health, aimed at creating a national oncology platform in India. The initiative seeks to improve access to specialized cancer care across the country.
Another new incubation operates within the US-India healthcare corridor, focusing on advanced psychiatric treatments for patients suffering from treatment-resistant depression.
These ventures align with the firm’s broader thesis that India’s healthcare infrastructure remains significantly underdeveloped, particularly in specialist care.
Dual Strategy: Specialty Platforms and AI-Enabled Services
Fund II will operate across two strategic playbooks:
1. Specialty Healthcare Platforms in India
The firm plans to develop single-specialty and distribution-led healthcare delivery platforms across segments such as:
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Oncology
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Chronic care
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Preventive healthcare
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Elderly care
These platforms aim to expand access, standardize care delivery, and leverage technology to improve operational efficiency.
2. AI-Enabled Healthcare Services Across the US-India Corridor
The second strategy focuses on building AI-first healthcare services companies that operate across the US-India corridor.
Currently estimated at $40 billion in trade, this corridor is experiencing rapid transformation driven by automation and artificial intelligence. Areas such as revenue cycle management, clinical documentation, and healthcare workflows are increasingly being optimized through AI.
“We are not healthtech investors; we are healthcare builders,” said Jethwani. “Every company we create must be AI-enabled at its core.”
A Concentrated, Conviction-Led Investment Model
Unlike diversified venture capital funds that spread capital across dozens of startups, W Health Ventures follows a concentrated investment approach.
“We will build eight to ten companies within the fund — roughly two per year,” Jethwani explained. The model emphasizes deep operational involvement, long-term value creation, and sector-specific expertise rather than volume-based investing.
Positioned for India’s Next Healthcare Breakout
Healthcare in India is attracting growing interest from private equity firms and public market investors. W Health Ventures believes that purpose-built, AI-driven specialty platforms can emerge as the next generation of scalable healthcare enterprises.
By combining structured company creation, sector expertise, and AI integration, the firm aims to play a pivotal role in reshaping India’s healthcare delivery landscape.
As Fund II moves toward its final close, W Health Ventures is positioning itself as a leading architect of India’s next wave of healthcare innovation.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.