Delhi’s House of Diagnostics (HOD), a leading integrated medical diagnostic chain, has kicked off discussions to raise $30-40 million in a largely primary funding round. This marks the company’s first major external fundraising effort, as it aims to accelerate expansion in a rapidly growing sector.

Sources indicate that the process, managed by professional services firm EY India, began a few weeks ago. The funds are primarily earmarked for scaling operations, extending geographic footprint beyond current markets in Delhi-NCR, Haryana, and Uttar Pradesh, and bolstering advanced diagnostic capabilities.

Founded in 2008 by Shubham Sogani, Labham Sogani, and Shanti Kumar Sogani, HOD has built a reputation for high-quality, affordable radiology, pathology, and nuclear medicine services. The company operates multiple NABH-accredited centers and a NABL-accredited referral lab, with over 100 blood collection points across Delhi-NCR. It offers state-of-the-art imaging like 3T MRI, PET-CT scans, CT scans, and comprehensive pathology testing.

Financially, HOD has shown robust progress: Revenues grew to ₹150 crore in FY24 from ₹120 crore the prior year, while swinging to a net profit of ₹4.3 crore after a small loss in FY23. This turnaround underscores operational efficiency and positions the firm attractively for investors.

The move comes against a favorable backdrop for India’s diagnostics industry. A recent CareEdge Ratings report projects the market to expand at a 12% CAGR to $15-16 billion over the next five years, driven by rising demand for preventive and wellness testing, demographic shifts, increasing health insurance penetration, and infrastructure growth in tier-II cities and beyond.

HOD competes in a fragmented space with players like Dr. Lal PathLabs, Metropolis Healthcare, SRL Diagnostics, Thyrocare, and smaller chains such as Tenet Diagnostics and Aarthi Scans. Several peers are also exploring funding to fuel growth, signaling sustained investor appetite for differentiated diagnostic providers.

This potential infusion could propel HOD toward national and even international ambitions, enabling investments in cutting-edge technology, wider service integration, and enhanced patient access. As preventive healthcare gains traction post-pandemic, companies like HOD are well-placed to capture rising demand for accurate, ethical diagnostics.

Industry experts note supportive policies and FDI inflows as additional tailwinds. As Shantanu Jindel, partner at CMS IndusLaw, observed: “All of this should drive demand and keep investors interested in quality assets.”

With the fundraising underway, stakeholders will watch closely for investor commitments and how HOD deploys the capital to strengthen its position in India’s evolving healthcare landscape.