Sukino's $31 Million Funding Round Highlights Growing Investor Interest in Continuum Care
Venture capital and private equity investors are placing bigger bets on post-hospital care services in India. This trend comes as hospitals discharge patients more quickly and families seek structured recovery options outside traditional hospital settings. The latest significant deal in this space is Sukino's $31 million Series B funding round.
Major Investment Led by Bessemer Venture Partners
Sukino's recent funding was led by Bessemer Venture Partners with participation from Zerodha-backed Rainmatter. The company operates out-of-hospital recovery centers across South India. This marks a substantial follow-up to their earlier ₹50 crore Series A round led by Stakeboat Capital in 2024.
Founder and CEO Rajinish Menon confirmed that Sukino operates profitably at the group level. The company currently manages approximately 850 beds across 11 centers in Bengaluru, Kochi, and Coimbatore.
Expansion Plans Across South India
With the new capital infusion, Sukino plans aggressive expansion. The first phase will focus on metro cities in South India before moving to tier I markets. Menon specifically mentioned Hyderabad and Chennai as immediate targets, followed by cities like Calicut, Trivandrum, Mysuru, and Vizag.
The company aims to add 22 more centers over the next two years. Most expansion will follow an asset-light model where landlords invest in building infrastructure while Sukino signs long-term leases.
Transition Care Model Gains Traction
Menon emphasized that Sukino operates as a hospital-like transition care setup rather than a home care company. The model takes over after acute hospital treatment while maintaining lower costs than extended hospital stays.
"Acute care still happens in hospitals, but we handle everything beyond that," Menon explained. "We're expanding our clinical capabilities to provide comprehensive post-hospitalization services."
Investor Confidence in the Continuum Care Thesis
Vishal Gupta from Bessemer Venture Partners explained their investment rationale. Hospitals are shortening patient stays, particularly for stroke, cardiac, and complex orthopedic cases. The crucial recovery period immediately after discharge often determines long-term outcomes.
Gupta noted that Sukino provides care at a fraction of hospital costs while maintaining healthy margins. He presented a straightforward calculation: with patients paying ₹7,000-8,000 daily for 50-60 day stays, a 5,000-bed operation could generate ₹1,000 crore revenue quickly.
Market Dynamics Driving Change
Mohandas Pai, chairman at Aarin Capital and an early investor, highlighted changing hospital economics. Hospital care has become expensive, and facilities earn more from procedures than extended recovery stays. This creates natural incentives to discharge patients sooner.
Pai recommended that Sukino focus on dominating Bengaluru first before expanding to other markets. He also suggested that future growth would likely involve bank leverage rather than additional equity rounds.
Broader Industry Context
Sukino's funding arrives alongside other significant investments in India's continuum care space. In January 2025, private equity firm InvAscent invested ₹110 crore in Chennai-based Geri Care Health Services. The previous year saw Kites Senior Care raise ₹45 crore and senior-focused platform Khyaal secure $4.2 million in seed funding.
Industry experts caution against confusing continuum care with senior living. The former represents a clinical extension of hospital care for patients who need active support but not intensive hospital settings.
Strong Fundamentals Attract Investors
Venkat Subramanyam of Veda Corporate Advisors noted that Sukino's clear category positioning and demonstrated unit economics appealed to investors. Many scaled healthcare businesses still struggle with profitability, making Sukino's proven model particularly attractive.
The company's strong leadership team and investor roster also built confidence among potential backers. Multiple large investors showed interest in participating in the funding round.
As India's healthcare landscape evolves, continuum care providers like Sukino are positioned to fill the growing gap between hospital discharge and full recovery. Their asset-light, high-margin approach offers patients cheaper alternatives while maintaining clinical standards.
