$31M Boost for Sukino Signals India's Growing Continuum Care Market
Overview
Sukino has secured $31 million in Series B funding, led by Bessemer Venture Partners, to expand its network of out-of-hospital recovery centres. This investment highlights growing investor interest in India's continuum care sector, driven by hospitals discharging patients earlier and families seeking structured post-acute recovery. The funds will fuel expansion into new metro and tier I cities across South India.
Sukino, a provider of out-of-hospital recovery centres, has closed a $31 million Series B funding round. Bessemer Venture Partners led the investment, joined by Zerodha-backed Rainmatter, signaling strong investor confidence in India's burgeoning continuum care market.
The company operates approximately 850 beds across 11 centers in South India. With this new capital infusion, Sukino plans to add 22 more centers over the next two years, targeting metro cities like Hyderabad and Chennai before expanding into tier I cities across the region.
This growth is propelled by a shift in healthcare delivery, where Indian hospitals are increasingly focusing on high-turnover acute care and quicker patient discharges. This creates a demand for specialized post-hospitalization recovery services, which Sukino provides at a fraction of hospital costs.
Strategic Expansion and Business Model
Sukino Founder and CEO Rajinish Menon stated that the initial expansion will concentrate on key South Indian metros. The company employs an asset-light model, where landlords invest in facility build-outs, allowing Sukino to scale rapidly with reduced capital expenditure.
The company differentiates itself from home care, positioning as a crucial transition-care setup bridging the gap between acute hospital treatment and full recovery. This allows patients to receive comprehensive post-hospitalization care services in a more cost-effective environment.
Investor Rationale and Market Outlook
Vishal Gupta, Partner at Bessemer Venture Partners, highlighted Sukino's role in the growing 'transition care' segment, essential for patients recovering from stroke, cardiac, or complex orthopedic procedures. He noted the potential for a ₹1,000 crore revenue business with 5,000 beds, based on daily patient fees and recovery durations.
Mohandas Pai, Chairman at Aarin Capital, echoed the sentiment, pointing to rising hospital costs and evolving hospital incentives as drivers for continuum care. He advised Sukino to solidify its presence in Bengaluru before aggressive expansion into other markets, anticipating future growth via bank leverage following sustained profitability.
Industry observers emphasize that continuum care is a distinct clinical extension of hospital services, not senior living. While the sector is poised for more capital inflow, consolidation is expected to be gradual, with niche acquisitions likely in the near term.
